Is Detroit the new Vegas? automakers risk billions by continued Gambles On EVs

It would seem to be a sucker’s bet. The EV industry in the U.S. has cratered as people have refused to give up gas-powered cars and the stage during which “early adopters” bought them is over. Nevertheless, large manufacturers cannot help themselves — they have upped the launches of new electric vehicles. 

READ MORE ABOUT AMERICANS’ RESISTANCE TO ELECTRIC VEHICLES
So sorry, planet Earth, but we Americans are really not all that interested in Electric Vehicles
The EV unfaithful: 81% Of Electric Vehicle Owners also Have a Gas-Powered Car

The ongoing LA Auto Show, one of the largest of the year, displays the continuing deluge of debuts. Among the two dozen car companies on hand are EV pure plays EV market leader Tesla, Rivian and Lucid. But, according to Axios, a number of legacy car makers are there with new EVs, some of which will be among the largest cars on the road. “Cadillac, Hyundai and Kia are all introducing new models with three rows of seats, designed mainly for families,” the outlet reports.

Huge per-car loss
Anyone with even a little knowledge of the industry sense would question the big-EV strategy. Although most large car companies do not disclose their EV financials, Ford does. In the first three quarters of the year, it lost about $100,000 for each EV it sold. 

The risk the car companies appear willing to take on is that when the demand for EVs suddenly surges, they will be there to make money on their portfolios of models. The challenge is that, with the objections Americans have to EV purchasing — such as range limitations, lack of chargers and cost — that day may be years away.

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