Toyota is Going Out of Business
Despite that, the biden administration is actively working to impose evs on all americans today ill show you the current demographics of americans. So you can see why evs are unachievable for many ill. Also share how bidens plans will impact, not just americans, consumers like yourself, but also car makers too, and stay tuned to see why toyota may go out of business and how gm and ford will soon overtake tesla. Everyone knows the price of gasoline has gone up, but many dont realize the real pain its like boiling a frog or a lobster when you apply more heat just a little at a time, its hard to know, youre stewing well its the same thing with gas prices. If you want to see how much gas prices have jumped, just rewind youll see that gas has jumped almost 44 thats, not just more than inflation, its simply crazy thats, why more consumers are looking into evs than ever before last february, the average price for a new Gasoline powered car was forty five thousand six hundred dollars, whereas the average cost of a new ev exceeded sixty thousand dollars, of course, its possible to buy a used combustion engine car for much less than a lower end ev, for example, in the atlanta metro area. The most affordable used ev the model year 2018 or newer, was around 50 grand, although most were well over 60.. Yet there were literally hundreds of used gasoline powered vehicles for sale for less than 20 000.
So how rich or poor are americans today? How many americans can afford an ev? Well, it used to be that america was made up mostly of the middle class, some 61 of adults to be exact, but believe it or not. In the last 50 years, the middle class has shrunk significantly down to 44. Right now, only 18 of us households are considered upper class, meaning that they earn more 156, 000 annually, obviously theyre in the best position to opt for an ev if they want and right now the u.s medium household income is 67 000. Some twenty percent of american households are in the twenty five thousand to fifty thousand income bracket. You have eighteen percent of american households making less than twenty five grand a year as a point of reference. The poverty line for family for right now is a bit less than twenty seven thousand dollars in case you didnt catch that thats 38 of american households that earn less than 52 grand and are considered lower class. Assuming there are 2.6 people in the average household theyre. Barely getting by so do you really think that 38 of us households can afford an ev? Obviously not the middle class might be in a better position to opt for an ev. Some 44 of us households are considered middle class, but the income range for the middle class is far and wide were talking. A household income range between fifty two thousand and hundred and fifty thousand dollars, so you can see its wide spread and those on the lower end of the income range most likely cant afford an ev right now, the top two most popular evs.
To date, a tesla y suv and the tesla model three sedan. So how much will they set you back? The tesla model y has a starting price of 65 900. The tesla model 3 is a starting price of nearly 45 000. Why rvv so expensive to buy compared to your average gasoline gasoline powered vehicle? Well, there are many reasons for one theres, a sheer cost of research. It takes to develop and manufacture an av. Evs have different systems and there are many different types of evs really development. In ev is almost like starting from scratch every time. True, gasoline powered cars are updated every year, but theyre rarely completely re envisioned, plus the batteries inside evs arent cheap by any means evs run on lithium ion batteries, an electric vehicle battery costs way more materials and labor compared to conventional batteries. For a gasoline powered car, its true that lithium batteries arent as expensive as they were back in a nissan leaf and chevy volt were first introduced, but they arent cheap today, either also ev chargers add to the cost of your av purchase price having a level 2 Charger installed in your house is a happy medium between level, one charging at home and a level three charge at a public charging station, but a level two charger alone will set you back around two grand. You need to factor that into your overall ev press. If youre set on getting an ev dont forget to estimate your charging costs, in other words your electricity bill right now, the national average electricity is about 14 cents per kilowatt, but many states across the country.
Electricity prices are much higher. For example, in new england, the average cost of electricity is 24.5 cents per kilowatt and in the largest state population, california, the average cost is a whopping, 26.71 cents per kilowatt. But just imagine say if even half of all americans started driving evs reality is the uptick. In electricity, demanding consumption will drive up the cost of electricity. Even further were back to economics, 101 supply versus demand. We could compare current ev charging prices to current gas lane prices, but you have to remember that in the past few months of this year, gas prices have been an all time, historic high. This last may, the average retail price of gas was four dollars and 54 cents. Yet two years ago the average price of gasoline was 1.96. Many experts believe that, if biden were to embrace pro energy reforms, energy prices could fall to trump era levels. Speaking of president biden, he has big plans for evs, but for many americans this wont be a good thing. Heres. What i mean couple of months ago biden hosted a virtual major economics, foreign energy and climate. This was actually the third time he held a meeting like this. Since this presidency began at the forum representatives, more than 20 governments worldwide discussed urgent food security and energy concerns. They also discussed their commitments and pledges to battling global issue of climate change. Some governments pledged to decarbonize ocean based shipping, others pledged to increase fertilizer efficiency and alternatives, while others pledged to reduce methane emissions.
Yet one common fledge cup coming on put more zero emission vehicles on the road and thats, where bidens big plans come in actually dramatically increasing the number of zero emissions vehicles or zebs for short on americas roadway has been in bidens books for years earlier. This year, biden announced his administrations target to have half of all new light duty vehicles sold in 2030 to be seeds. This would include fuel cell electric battery electric and plug in hybrid vehicles anyway, at the major economics forum in june biden once again reiterated his plans to impose far reaching regulations to basically force car companies to sell more evs and other clean green machines. Some of these regulations have already been put in place, while others will roll out in the near future. China and europe have already been enforcing regulations to heavily promote evs and with buying new commitments. The worlds three largest car makers are moving away from gasoline cars. At a faster pace than anyone predicted only a few years ago, thats not to say that this will be an easy policy to carry out here in the u.s. In reality, its quite an ambitious project. The biden administration wants to invest billions of dollars to build charging stations for evs and to lower the ev costs. But last year the bipartisan infrastructure bill in the senate only authorized seven and a half billion dollars for charges that may sound like a large authorization, but that amount was only half of bidens original request and theyre, not even talking about where this electricity to run these Charges is going to come from.
No one is building green power stations, yet at any mass production level. Now, with climate change at its worst youd think a major us ev announcement like that, would spell out good news for everyone, but your average american family. This is anything but good news. Heres the thing about bidens new pulse once its fully enforced manufacturers will have no choice but to produce zero emissions vehicles we can all expect higher costs to buy and own a car as it is. Evs are already expensive enough for the average american at the high end of the ev scale. We got cars like tesla model s. That starts at more than eighty thousand dollars and, at the lower end, the cars like chevy bolt, which start at 31 000, even though its one of the cheapest evs you can find in the market. Its still got a price tag, its almost 10 grand more than a larger gasoline powered sedan like the chevy malibu. Now its true. There are ways to lower the overall price of a new ev. For example, a federal tax credit can lower the sticker price to as much as 7 500.. These credits are available for the sales of new evs. You have to meet the income eligibility requirements in order to qualify for the rebate. Buying plan for ev spells out good news for some car companies. Bad news for others take tesla. For example, tesla makes up more than two thirds of the battery powered cars sold here in the u.
s and bidens announcement to force manufacturers produce zebs will increase tesla sales. Did you know that this isnt the first time tesla, can be thankful? The u.s government, back in january 2010, the obama administration granted tesla a jaw dropping 465 million dollar loan to help him develop and manufacture the model. S sedan, peter rolison, former chief engineer, tesla and now chief executive of lucid said that without the loan tesla probably wouldnt exist today. He even added that actually the us government made tesla the success it is today, but then theres, toyota, toyota motor, is the worlds largest automaker. Yet, despite that, theyve only recently joined the battery electric race here in the u.s compared to some european and chinese ev regulations. Spidens plans have been criticized by environmentalists as being too modest by 2030. Half the vehicles sold in the us are still expect to be powered by gas or diesel. Yet, despite that, the ban on selling new gasoline powered vehicles is fast approaching and with so little marbles in the battery electric game, some critically bidens new regulations will spell doom for toyota. The big question is: will toyota be able to catch up in time right now? The average american keeps his combustion engine car for 12 years, so were talking a bit over a decade, so toyota can still bet on their gasoline powered cars having gas stations around for many years in the future. Yet there still is pressure on the company to create and release evs faster toyota.
Also doesnt have the luxury of an almost 500 million loan from the government to help even at toyota, where to start pumping out the bevs and mass remember just because companies make evs. Does not guarantee that many people will buy them if you want to know how big teslas look at the number this year, between january and march, about 75 percent of ev sold their teslas theyre the market leader of teslas total sales, the model y suv in the Model 3 sedan map up by whopping 68, but experts are saying that teslas rear view mirror is getting crowded because other brands are creeping up on them last year and the first quarter, americans bought 18 different ev models, but this year and quarter, one americans bought 32 Different ev models and analysts predict that number will increase to at least 50 by the end of the year, so whos teslas biggest competitor well hot, on their tail, taking a spot of third best selling ev at 2022. So far as the mustang machi did you know that in the annual car war series, the bank of america conducted a study and it predicted that gm and ford will overtake tesla in the ev market by 2025 thats less than three years away. According to the study, teslas current market share could drop to close to 70 to 75 percent all the way down to 11. The next three years. Thats a nosedive ford and gm, are actually expected to approach 15 percent thanks to their new ev models.
Now, seeing the teslas absolutely dominating the ev market today, it can be difficult for us to imagine them dropping off to such a position, but experts believe this is a real possibility. The reason why is because elon musk is introducing products at a rate thats just too slow and teslas product portfolio isnt large enough to compete in an all oncoming competition. Gm announced plans to spend a massive 35 billion on evs and autonomous vehicles by 2025.. They expect to be the leading ev sellers from the u.s by 2025, with an estimated 400 000 vehicles sold ford announced lands to spend an even larger 50 billion on electrification by 2026.. They expect to take the second spot in ev sales by 2025.. Competition is a good thing because it incentivizes all players to work harder and offer more to consumers. Theoretically, this is of benefit to the consumers, regardless of all that, for the time being, we can agree on one thing: the average american just doesnt have enough money to buy an ev. The biden administration knows this, of course, yet its firmly pursuing its course to reduce emissions, regardless of how painful it will be for american families.