Electric Vehicle Checkpoint: Americans finally plug in to EVs

Are Americans finally joining electric vehicles?

Sales of battery-powered electric vehicles reached a new record in the fourth quarter of 2021, despite stock problems and slow sales of new cars.

This week, KBB announced that in the fourth quarter, sales of electric vehicles jumped by 72% compared to the previous year to a record 147,799 units. EV’s market share in the last quarter was 4.5%, which is also a record high for this segment. The popularity of electric vehicles is growing, and almost half a million people have bought EV 2021. Moreover, KBB said the number of pure EV choices is improving: 25 different EV models have been sold in K4 2021, and several new tables are on the horizon for 2022.

“There is no doubt that we are in a decade of electrified vehicles, and our experts from Coke Automotive predict even further growth of electrified vehicles in the years to come,” said Matt Degen. “The car market continues to grow and diversify every year. Hybrids are now mainstream products, and more than ten new electric vehicles will be launched in 2022 – including the long-awaited and potentially large Ford F-150 Lightning. ”

The KBB report said that while consumers still say they think EVs are too expensive and range anxiety persists, interest has never been higher. Among EVs, Tesla remains the top player with 72% share of the EV market, KBB said. That’s down slightly from near 80% in 2020, but Tesla still delivered significant 71% year-over-year growth.

Tesla’s Got to Clean Up its Act

Tesla will pay a fine of $275,000 in a settlement with the U.S. Environmental Protection Agency for violating the federal Clean Air Act at its manufacturing plant in Fremont, Calif. a few years ago.

For perspective, that’s equal to about two Model S Plaids, plus change, from a company that had a net income of more than $2 billion in the fourth quarter of 2021. Or, around 335 shares of Tesla stock. (Which do you think will appreciate more, the cars or the stock?)

The EPA charged that Tesla violated “National Emissions Standards for Hazardous Air Pollutants for Surface Coating of Automobiles and Light-Duty Trucks” from October 2016 through September 2019, which could put people living in communities nearby at health and environmental risks. According to the EPA, Tesla has corrected the violations, returned to compliance and promises to never do that again.

Meanwhile, a problem with groundwater availability at Tesla’s plant near Berlin could evaporate the company’s European expansion plans. Although Tesla knew about the water issue – which has been of concern for Berlin for decades – it pushed ahead, and said last year it wants to build up to 10,000 vehicles a week at the plant.

After initially scheduling production of Model Y vehicles in November or December 2021, the plant still isn’t producing any cars. Approval from local authorities is pending and now Tesla is facing a court hearing next week that could delay the plant further. At stake is Tesla’s plan to take a chunk of the European electric vehicle market. The 500,000 vehicles the plant will produce, if it ever gets up to full capacity, would more than double Germany’s production of electric vehicles in 2020 and some analysts have pinned their targets on the company’s successful expansion in Germany.

En Garde, Tesla!

It’s possible that Germany could be the site of yet another brewing battle in the EV wars. Tesla! It’s a dream poster. And guessing the winner would be difficult as each of the two adversaries have strong arguments in its favor. The battle between Tesla and Porsche is about to begin. After months of rumors, Volkswagen said this week it’s considering giving independence to Porsche, one of its luxury brands along with Bentley, Bugatti and Lamborghini. That could take the form of an IPO of Porsche, the sports car brand whose emblematic model remains the Porsche 911 — but the all-electric Taycan is coming up on the outside. Volkswagen, which is looking for funds to finance its electric transition, remains cautious about the outcome of the process, however.