The EV Bubble Has Burst

Eventually every bubble bursts.

When it comes to investing, those implosions destroy wealth and optimism about the future.

Corporates often make the same mistakes as individual investors, chasing fads and ignoring fundamentals in pursuit of the latest thing.

They labor under the delusion that 'this time is different'.

That's how it came to be that motor vehicel manufactureres are feeling the pain now that people are waking up to the electric vehicle (EV) mania.

You'll recall that EVs have been pushed by rent seekers, climate change zealots and idiotic governments as the future. Some nations have even mandated an EV uptake, sentencing their citizens to an environmental and financial nightmare in the years ahead.

Now the manufacturers of these toxic potential fireballs are feeling the heat.

Volkswagon, fresh from their diesel emissions efficiency global lie have said orders for EVs are down 50%. Ford announced they are losing USD 36K on every EV they sell with a full year loss of $4.5 billion.

Even the battery producers are delaying manufacturing as demand dries up. Ford is holding off on $12 billion in investments while Panasonic battery manufacturing is down by 60 per cent.

It's not hard to understand why as the record of EV infernos alert more people to the perils of lithium-ion battery technology. There was even a case of an EV 'kidnapping' their owner by refusing to slowdown.

The Epoch Times quotes the Chairman of Toyota as saying 'people are finally waking up to the reality of electric vehicles'.

Toyota’s chairman and former CEO, Akio Toyoda, told reporters at an auto show in Japan this week that waning demand for electric vehicles (EV) is a sign that people are waking up to the reality that EVs aren’t the silver bullet against the supposed ills of carbon emissions they’re often made out to be.

People are finally seeing reality” about EV technology…Mr. Toyoda, a long-time skeptic of a full-steam-ahead adoption of EVs, stepped down from his role as CEO of Toyota this year amid criticism that he wasn’t serious enough about pushing the company into a quick adoption of battery-powered cars.

The Ford CFO tried to put some lipstick on the pig of the EV implosion.

“The narrative has taken over that EVs aren’t growing; they’re growing,” Lawler said. “It’s just growing at a slower pace than the industry and, quite frankly, we expected.”

While the malfunction of the EV makes the headline news, there are some more elemental problems that people are quickly learning about.

Firstly, they are horribly impractical outside of the city-scape. Their range is limited while the recharging options are slow and impractical.

Then there's the problem with the cost and availability of electricity itself. Even our government agencies are forecasting black and brownouts in coming months thanks to the state fo the grid and our power generation.

There's also the small matter of the total lack of privacy attached to most EVs.

I am told the Tesla tracks and reports the location of the vehicle at all times. Further, the software can be accessed by the company at any time. This means the vehicle could be shut down even while you are driving it.

That may be true of some non-electric vehicles too but there are still plenty of privacy respecting fossil-fuel vehicles available on the second-hand market.

I'd suggest you keep at least one of them in your garage for a while yet.