The Way It Makes Sense

  • August 1, 2023

Ford has been losing billions not selling EVs – which are stacking up at dealerships all over the country. It’s not just Ford, either. The only EV maker putatively selling EVs is Tesla – emphasis on putative, because Tesla is probably selling them at cost (or a loss) having cut prices to get people to buy them again.

Tesla makes its money via the stock market – on speculative value based upon the belief that people will have to buy EVs, government having “mandated” them. And via the selling of  carbon credits – a blasé term for legal extortion.

It works like this:

The government decrees that companies reduce their “carbon footprint” – by which is meant the quantity of the inert and necessary-to-life gas carbon dioxide, which has been slandered as a “pollutant,” in order to trick the populace into regarding it as harmful by equating it with substances that foul the air and contaminate the environment and injure living things.

One way for the companies whose “carbon footprint” is larger than government allows to avoid being strong-armed by the government is to hand over money to companies like Tesla that use the government to get other companies to hand over money to them as payment for these carbon credits. The purchase of these is regarded by the government as an offset. Tesla – builder of (cough) “zero emissions” EVs – sells credits to companies that don’t make them. These companies then get “credit” for having made their “carbon footprint” smaller – and Elon Musk’s bank balance larger.

Anyhow, the point is that no one is actually making money selling EVs – and because they’re not selling, inventories are accruing. This is certain to result in even heavier losses than have already been eaten by the companies that continue to build more of these things – because the ones already built will probably have to be given away (heavily discounted) in order to clear dealer lots to make room for more EVs that will take their place.

It is only a few weeks from Fall – and just a few months from 2024. The glut of 2023 model EVs will soon be last year’s EVs – and even if they weren’t EVs, that would result in them being “sold” at fire-sale prices, not only to move them off the lot but to staunch the hemorrhage of money dealers are losing with each passing month that these soon-to-be-last-year’s-vehicles (LYVs) sit unsold on their lots.

Plus, winter is coming. And people have become hip to what happens to EVs when it gets cold – on account of what happened to EVs last winter.

But the single-biggest salient fact is that EVs are beyond the financial means of probably two-thirds of potential new car buyers – because two-thirds of potential car buyers cannot afford the roughly $15,000 more it takes to buy the typical EV (average purchase price appx. $50,000) vs. what it takes to buy the typical non-EV (average purchase price appx. $35,000).

Not counting the additional expense of  having an electrician upgrade their home’s electrical; panel so as to be able to get back on the road again in less than a day or two.

Major car companies like Ford have accounting departments.

They know most people cannot afford to spend $15k more on a vehicle just because it is (cough) “green.” Or for any other reason. Expensive things are by definition things most people can’t buy, no matter how much they might want to.

So what else do these car companies know?

Here’s what this writer suspects:

A meeting has been held – probably not in a smoke-filled room (a relic of a manlier, more forthright era) attended by all the major players. At this meeting, assurances were given by the government – by the people who operate its levers and wheels – that, not to worry about all of these losses you guys (the car companies) are incurring. This will be temporary. We will eliminate alternatives to the EVs that aren’t selling. And don’t worry about selling them, either.

Instead, you will sell people rides – which they’ll have no choice but to pay for, if they want to be taken anywhere. You will enjoy a monthly-recurrent, never-ending revenue stream that works exactly like a subscription. People will be obliged to accept paying for rides because they won’t be able to afford the car. That is how we will fix things. You will no longer have to worry about the cost of the cars making it so people can’t afford them – and you can’t sell them.

If this sounds a bit much, consider that the car companies themselves are rebranding as mobility companies that sell “transportation as a service.” It will solve the problem of what people can’t afford anymore by assuring they never have to worry about owning anymore. Whether “transportation” or anything else. Which is also something the people behind all of this have lately become rather brazenly open about.

You will own nothing and be happy!

And those who own everything – and charge you a never-ending subscription to be allowed use of it – will be very happy, indeed.

. . .

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