Updates
May 23, 2025: link here.
From the link:
For a while, it all seemed like it might just work out.
By one estimate, about 130,000 American jobs were said to be riding on the electric-vehicle boom sparked by the Inflation Reduction Act. Other estimates put that number around 160,000; if you include indirect but related fields, it may be closer to half a million.
Regardless, it's clear that the Biden-era legislation that laid out incentives to manufacture EVs and batteries domestically, along with penalties if automakers don't, was set to drive a lot of employment. Add in the potential to catch up to China's decades-long lead on battery technology and the potential for less air pollution, and America's EV race seems like a win for all involved.
So why would President Donald Trump and a Republican-controlled Congress be so dead-set on scrapping all of that, especially when bringing manufacturing jobs back to America is supposedly one of their top priorities?
That question has been on a lot of people's minds this week as the U.S. House of Representatives' finalized version of Trump's budget bill not only kills the EV tax credit and EV manufacturing incentives, but also makes EV ownership itself more expensive through new taxes. This, despite record EV sales in America in 2024 and nearly every automaker announcing huge EV investments—including domestic manufacturing, disproportionally focused in red and purple states.
The question again: why would President Donald Trump and a Republican-controlled Congress be so dead-set on scrapping all of that, especially when bringing manufacturing jobs back to America is supposedly one of their top priorities?
The answer comes down to three things: climate change, oil and gas, and China.
Comment: the writer is completely wrong: it comes down to free market capitalism. How long has the federal government and state governments been providing huge incentives for consumers to buy EVs and there's been little penetration?
May 23, 2025: VW, VMW and Mercedes are in trouble. No matter how they spin it, it's "all over" for the mass market EVs costing over $40,000. Maybe even over $30,000. No more tax credits; number of charging stations lacking; resale value plummets; and, no one understands the technology.
Original Post
How many years have "we" been subsidizing the EV industry with direct credits, incentives for the EV consumer?
First, a bill passed by the U.S. House this morning moves to end the Inflation Reduction Act's tax credits for clean energy, including electric-vehicle tax credits. Then the U.S. Senate voted to end a so-called waiver that allows California to set its own emissions standards, which are followed by more than a dozen other states and sought to regulate all-electric new car sales by 2035.
Not worry: "Fake EVS" (HEVs and PHEVs) will do just fine.
How is the Ford Mustang Mach-E division doing: selling a lot of cars. #2 in sales, behind Tesla.
Financial:
Despite the positive sales trajectory of the Mustang Mach-E, Ford’s Model e division reported a significant financial loss of $5.1 billion in 2024, an increase from the $4.7 billion loss in 2023. The division’s revenue declined by 35% to $3.9 billion, and global EV sales dropped by 9% to 105,000 units. Ford anticipates continued challenges, projecting losses between $5 billion and $5.5 billion for Model e in 2025.
Sales:
In 2024, the Mustang Mach-E experienced a 27% increase in U.S. sales, totaling 51,745 units, making it the second-best-selling electric SUV in the country, trailing only the Tesla Model Y. Specifically, during the second quarter of 2024, sales rose by 46% year-over-year, reaching 12,645 units. This growth contributed to Ford’s overall 61% increase in U.S. EV sales for that quarter.When did sales begin? So, five years in and financial situation getting worse?
Ford began selling the Mustang Mach-E in the United States in December 2020 as a 2021 model year vehicle. The all-electric SUV was officially unveiled on November 17, 2019, marking a significant expansion of the Mustang lineup into the electric vehicle segment
Production of the Mustang Mach-E commenced in 2020 at Ford’s Cuautitlán Assembly Plant in Mexico, which serves as the primary manufacturing facility for the global market.
Doing the math:
- $5 billion loss / 50,000 units = $100,000 / car
- how long does it take to ramp up a new model
Cash burn, previously posted:
Locator: 48633EVS.
Comments at the link very, very important. Some of them are posted below.
From 2023, Ford saw this coming:
