GM, Ford, VW and of course Tesla have made huge investments into the research, design, acquisition of materials, infrastructure and production of electric vehicles. Some of the vehicles are attractive and are well engineered, the problem is the market. The majority of consumers, given a free choice prefer the reliability, range, durability, all terrain and all weather features of the internal combustion engine. So far these auto companies cannot sell enough electric vehicles to make a profit on the huge investment they have made. The result is inadequate return on committed capital or dead money. Dead money is an anchor that can drag down any business in a free market. It would seem that there will be bankruptcies, mergers and a general decline in the value of these companies stocks.
However notice some recent events. Car manufacturers recently “objected” to a relaxation of EPA regulations that they have historically resisted. Suddenly they are giving every indication that they are more than willing to have the government dictate policy. Why? Well if they are to somehow recuperate and make a profit on their huge EV investment, they have to throw their lot in with coercive policies that will force consumers to buy electric vehicles and forgo the internal combustion cars they really want. The car manufacturers will therefore support the Democrats and hope that if they achieve power, such coercions via regulations and law will come about as the Democrats disastrously implement their bizarre “green new deal”. Look to auto stocks to follow the polls in the next year. If the Democrats are legitimately seem to be leading, those stocks will rise. If not and the free market and consumer preference win out, those auto stocks will take a dive.
“EV investment, they have to throw their lot in with coercive policies that will force consumers to buy electric vehicles and forgo the internal combustion cars they really want.”
There is a huge difference between want and need.
Every day a bazillion people buy water in a bottle!
Why?
Marketing!
That said, current EVs are $10-$15k above a similar ICE.
And a perciption of needing constant charging.
Motorists age 16 years and older drive, on average, 29.2 miles per day https://newsroom.aaa.com/2015/04/new-study-reveals-much-motorists-drive/