The demand for electric vehicles is declining, and Biden may have to slow down the pace of electric vehicle transformation.
According to sources, Biden is considering relaxing tailpipe emission regulations. The purpose of the regulation is to push Americans to switch from gasoline and diesel vehicles to electric vehicles. This potential policy change is in response to the current concerns of major automakers and unions. According to the source:
**Automakers will be given more time to quickly ramp up EV sales in the coming years, and will not require a significant increase in EV sales until after 2030.This potential policy change comes as demand for electric vehicles has fallen, with companies such as Ford cutting EV production and laying off workers.
As early as the end of 2023, 3,900 car dealers in the United States sent a letter to Biden**, asking Biden to reconsider the pace of electric vehicle licensing, citing a severe decline in demand for electric vehicles. "The current demand for electric vehicles cannot keep up with the current regulations, which is prompting a large number of pure electric vehicles to flood our dealerships," the dealer said. Electric vehicles are already piling up in our dealerships
Royal Bank of Canada analyst Tom Narayan noted in a recent report that the trend of slowing EV growth is far from over:
The earnings season so far has shown no signs of any inflection point in the slowdown in EV demand, and the headwinds for L4 driving remain, but concerns about the remaining inventory of ** traders may be overblown.In the face of sluggish demand in the EV market, automakers have been able to cut EV production capacity. Last month, Ford sold out of electric vehicles, mainly because Ford cut production of the F-150 Lightning to achieve "the best balance between production, sales growth and profits."
In addition, the decline in demand for electric vehicles also confirms what Akio Toyoda, chairman and former CEO of Toyota, said before: electric vehicles will never dominate the global market, and hybrid vehicles are the future.
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