The Electric Wave Cresting?

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An interesting thing is happening. Just months after every company that sells electric vehicles raised the prices of these vehicles – a lot – now they’re lowering them all of a sudden, also by a lot.

This sort of thing normally never happens.

If a car is a really hot-seller, the prices often go up – due to demand. This is basic economics. You can charge more for that which people want more. You rarely see a hot-seller selling for less. And never when it was selling for a lot more just weeks before.

A game’s afoot.

The question is – what kind of game? And who’s being played?

Back in December – all of four weeks ago – Ford and Tesla both increased the prices of their electric models, the F-150 Lightning and Mach e Mustang (as regards Ford) and the Model 3 (as regards Tesla), making them even less affordable than they had been, before. The main reason for this probably had to do with the increased cost of not just necessary but critically necessary raw materials, especially Lithium and Cobalt – without which it is not possible to make the lithium-ion batteries that store the power in all current-in-production electric vehicles.

Each of these batteries requires a large quantity of these materials – about 25 pounds of lithium, for instance. And that’s a lot – given how much in the way of raw materials must be sifted through, refined and processed (leached out, using oceans of water that is contaminated in the process) to get the lithium. Which is also not renewable – which oil may be (a subject for another column).

Once used up, it’s gone.

At any rate, the EV push – italicized to reflect the fact that it’s not natural market forces – created artificial demand for lithium and cobalt that may not have been . . . what’s the word? Sustainable. Lots of EVs being made for which there wasn’t enough demand to cover the increased costs of not enough lithium and cobalt. It’s one thing to build EVs. It is another to sell them.

At a profit, that is.

And that problem, no doubt, explains why Ford and Tesla (and GM, too) “adjusted” the price of their EVs upward back in December, all of four weeks ago. They probably had to – as it is hard to remain in business by losing money on each “sale.”

Once upon a time – and not so long ago – such cars were called loss leaders within the business.

But – here comes the rub – the adjusted prices were probably unpalatable to many buyers. For we are not talking about the usual year-to-year increase of a few hundred bucks but rather as much as $8,000 bucks (in the case of F-150 Lightning with the longer-range battery) and at least $3,500 for the Mach e. Bear in mind as well that neither of these EVs are “new” for the 2023 model year. Both are essentially the same as they were for the 2022 model year. Same as regards the Tesla 3 – which sticker’d up to around $50,000 to start, making Elon Musk’s promises of a $35,000 starting price as pie-in-the-sky as his promises of tourist space flights to Mars by sometime around now.

Anyhow, it probably became evident – to the people keeping track of what was selling – that the asking prices had risen above what people were willing (and able) to pay. Adding $3,500 to the cost of any new car is no small thing and adding $8,000 is probably an . . . unsustainable thing. Financing only goes so far.


Seven years is probably as far as it can go – due to the effect of depreciation. By the time you’re seven years out – or even five – you’re making payments on something that may no longer be worth making payments on. When people realize this, they tend to stop paying. Cue the repo tsunami – which has the side effect of further depreciating the value of whatever hasn’t (yet) been repo’d, creating a vicious feedback loop that worsens the situation for everyone who bought in (and loaned-in).

So, the prices probably had to come down – in order to keep sales going. But the cost of those expensive raw materials hasn’t gone down and isn’t likely to because – unlike oil, of which there’s so much they had to do something about it – there’s not much lithium or cobalt; certainly not enough to keep pace with the artificially-induced mass manufacture of EVs, to satisfy the requirements.

So, lower the prices – in order to fluff (or at least, maintain) demand. It may have happened as the result of a conference call of the involved kahunas. You can imagine the conversation:

Kahuna A: We’re losing our shirts on these EVs; we’ve got to raise prices!

Kahuna B: Well, we did that but our people are reporting declining sales; especially after the cold snap, when people found out how not-far these EVs go when it gets cold.

Kahuna A: Ok then, let’s drop the prices so that people think they’re getting a really good deal. We can tell them they’re saving thousands vs. last year!

Kahuna B: But then we’ll be losing millions this year!

Rubber meet road.

It may just be that what many have suspected – and which the evidence suggests – is true. That being EVs can’t be sold at a price that reflects what they cost to make – plus a profit – without which it’s not worth making them.

They can be sold at a loss, of course – for awhile.

But probably not for very much longer.

. . .

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  1. Eric,

    So THAT’S why the Chevy Bolt’s price was dropped for this year? Last year, it cost $28K-$30K; for this year, GM dropped its price to $23K-$24K. At the lower price, it’s somewhat competitive with small cars like the Nissan Versa, Hyundai Accent, etc.; fully loaded, those cars can top $20K, so the gulf between ICEVs and EVs isn’t as big as it once was.

    • Hi Mark,

      The Bolt is a subcompact car and so not viable as a family car. It is still much more expensive than something like an Accent or (better yet) a Mitsubishi Mirage – which lists for about $10k less to start.

      • The ICEV competitors to the Bolt are subcompacts also, thus they aren’t viable family cars, either. My only point was that they were comparable vehicles, or what the marketing types call a “cross shop”.

        • Hi Mark,

          No, but the non-electric subcompacts are economically viable – as commuter cars. EV subcompacts are not. What sort of imbecile would spend $26k on a Bolt when he could spend $14k on an Accent? There is no “savings” to be had – and one also must accept the time cost and all the other costs associated with EVs. Observe that the Leaf failed. Nissan lost money on each “sale.” I am certain the same’s true of the Bolt. GM is loss-leading this electric Turducken.

  2. When the Russians were in Afghanistan, they would bomb certain areas to keep the Mujahideen at bay, attack them to avoid being attacked. The locals in the area would go to the craters made by the bombs and would find gems, rubies and emeralds.

    Search gem hunting in Afghanistan at youtube. Precious stones no matter where you are in the mountains of Afghanistan.

    Gems the size of a 4 to 5 inch rock in a basement that is full of gems.

    One trillion dollars in gems in Afghanistan alone.

    Afghanis mining for precious stones are not about to get ripped off.

  3. Plug your expensive EV into a fast charger and it gets fried….lol….more EV grief…

    EV’s getting fried at chargers…..

    A longtime EV owner and current Rivian R1T driver recently shared a rather disturbing incident while charging at an Electrify America station. The incident left the R1T “fried” and the owner stuck hours away from home. Unfortunately, this does not seem to be the first time that such an incident happened.

    Rivian R1T owner @snkrticians noted that he was charging his all-electric truck at an Electrify America station when he heard a loud sound. The sound seemed to cause a number of error codes on the R1T, resulting in the vehicle being stuck in the charging stall.

    What’s rather disturbing about the Rivian owner’s experience is that this is not the first time the issue was reported. Back in November, Ford F-150 Lightning owner Eric Roe posted about a very similar experience on Twitter. According to the Lightning owner, he was able to plug into an Electrify America charger just fine, but not long after the charging session started, he heard a loud sound. The charger then went dark and the Lightning displayed a number of error codes. The vehicle had to be towed from the station.

    What’s unfortunate for the Lightning owner was that the vehicle had been back at the dealership since earlier this month due to one of its main battery modules failing since the Electrify America incident. The wait for parts is expected to be long. Ford service has reportedly advised the Lightning owner to ask the carmaker to buy the vehicle back.

    a Chevy Bolt owner claimed to have the exact same experience at an Electrify America charger as well. The incident ended up causing the Bolt owner to reportedly spend $288 to get the all-electric hatchback towed to a dealership.

  4. I just want to see that new Hummer EV abomination burn, preferably with pFauci in it but empty would do too.

    That’s got to have a couch sized battery in it…. Imagine the roaring sound!

    • “Imagine the roaring sound” — David

      Man, I’d cue up an old Johnny Cash LP as the sound track to watch Fraudci burn … and hurl a few ‘Fauci crackers’ into the flames for punctuation — pop pop pop!

      I fell into a burning ring of fire
      I went down, down, down and the flames went higher
      And it burns, burns, burns
      The ring of fire, the ring of fire

      — Johnny Cash, Ring of Fire

    • There is supposed to be a lot of lithium ore in the mountains of The Afghanistan.

      Which we no longer occupy (not that we ever really controlled it).

      There is a lot of oil in Iraq, but somehow China got all the contracts, and we got our asses handed to us over there too.


  5. Ford CEO Jim Farley is out with a rant that leaves ‘EeeVee Mary’ in the shade. Just a few selections from his blasting firehose of raw sewage:

    “Fundamental change for us is two things: Being able to have a digital product where you make the product better every day through over-the-air updates,” much the way mobile phones and computers update now.

    “The real problem with our vehicles are, they’re not smart,” Farley said. “To control a car, we need 3,000 semiconductors. We have about 140 modules that control the vehicle — window control module, transmission control module.

    Next is a need for shared mobility and the opportunity to rent rides, because fewer and fewer people can afford vehicles. “Electrification is going to make it worse, actually,” Farley said.

    People at Ford Blue “have to be prepared for the next era of vehicles, which are going to be digital.” This means more electrical engineers and fewer mechanical engineers, he said.

    Don’t want no digital vehicle.
    Don’t want no over-the-air updates.
    Don’t want 3,000 freaking semiconductors in 140 control modules.

    Farley’s blunt warning that vehicles are unaffordable, and he plans to make it worse, is infuriating. He might as well spit in his customer’s face and then stomp their toes for good measure.

    One way to take down an inflamed asshole like Farley: BOYCOTT his stinking company till they make products buyers want.

      • As a car-obsessed kid whose first artwork consisted of 30 tire tread patterns, I wanted to work as an engineer in Detroit when I grew up.

        Now, looking back in anger, I only want to destroy the Big Three.

        Now the time is here
        For Iron Man to spread fear
        Vengeance from the grave
        Kills the car biz he once saved

        — Black Sabbath, Iron Man

        • Hey Jim, me too! I even wanted to go to GMI in Detroit in the late 80’s. So I got enough gumption to fly out there myself to see the place. First thing that happened was a got taken for a ‘ride’ in the taxi. I knew the way by heart cause I studied a map. I was too scared to say anything. The school and environment was so sad and depressing, I couldn’t do it. Glad I didn’t.

    • I AM an Electrical Engineer, and I hereby certify the following statement as 100% Horse Puckey!

      “The real problem with our vehicles are, they’re not smart,” Farley said.

      No, Farley, your (ICE-powered) cars ARE smart. It is YOU who are dumb!

    • Farley and his minions sound like the guys the 5 year plans were handed to in the Soviet Union. The ICE employees, a.k.a “Boxers from Animal Farm” should walk away today. Right now.

    • Sounds nuts. I guess this is where the computer (“tech”?) fetish has got us. What happens when some part of such an incredibly complex system fails?

  6. This doesn’t help….solution….cut prices to sell them….

    Fuel Costs Of Electric Vehicles Overtake Gas-Powered Cars: Study

    ….it is worse then that….they didn’t include the $22.00 per 100 miles for the battery use….

    Discount them to sell them….then after 100,000 miles…or a minor accident……off to pollute the landfill..

    Insurers List Crashed Low-Mileage Tesla on Auctions: Analysis
    Insurance carriers are sending low-mileage Tesla Model Ys to salvage auctions because they are too expensive to repair…..these EV’s are great….can’t even fix them……lol

    Of more than 120 Model Ys that were totaled after collisions, then listed at auction in December and early January, the vast majority had fewer than 10,000 miles on the odometer, according to a Reuters analysis based on online data from Copart and IAA, the two largest salvage auction houses in the United States.

  7. Watch more states ban them for various reasons (Spontaneous combustions, infrastructure, stick it to Uncle, etc.), and also watch the normies reactions as the dirty truth becomes too big to hide.

    It failed 100yrs ago despite what the crazies on Gab and IG will claim about the wireless recharging technology we never knew about, and it’ll fail once more, especially with how word spreads

  8. What’s also at play is that—wait for it—electricity is also becoming more expensive. So any cost savings in fueling your EV aren’t there anymore.
    And electricity will become even more expensive as Elektrifikatsiya intensifies.

  9. It’s all your fault, Eric Peters. You are the one that had the temerity to say that Emperor EeeVee had no clothes. Now, with the cold setting in, we’re seeing the shrinkage, like a scared turtle, of the our overlord’s pet project.

  10. Just as Toyoda gets tossed from the company his grandfather founded, now we hear that EDs are peaking. Great. I don’t like the things for their limited range, their blandness and their use of resources. If we went back to coal, maybe electric rates woud be cheaper, but the enviros gave us gaaaas. Now they want to get rid of our gas stoves. I’d love to toss one of them in a landfill.

    • Hi Pat,

      There’s often a lag in between a scam being uncovered and it being widely known. I think we have arrived at the former as regards EeeeeeeeVeeees – and “vaccines” – and are getting closer to the latter every single day. Of course, this means things are getting dangerous, for them – the con artists – and that makes them a danger to us…

      • Huge incentives, now price cuts…….EV’s are too expensive people won’t buy them…people are going broke….

        “It’s The Perfect Storm”: More Americans Can’t Afford Their Car Payments Than During The Peak Of Financial Crisis

        Repo man is the best job opportunity now…..

        Ev’s make up less than 3% of vehicle sales after 15 years on the market (that is a huge market flop…lol)

        ATTENTION: and 80+% of former ev owners say they will not buy one again…so you have to keep finding new suckers….

        • Watch out huger incentives coming….going Norway….$23,000 incentives…otherwise nobody would buy them….lol

          In Norway 62% of new cars sold now are EV’s

          One reason for that is a $23,000 government rebate for EV buyers

          The EV is a 3rd or 4th car, these EV buyers have one or more ice vehicles which they use for 80% of their driving….the EV’s are driven very little….what a joke….

          the EV is just for virtue signalling…and for getting the $23,000 government (tax dollars) check….lol

          ATTENTION:…it didn’t work….reducing hydrocarbon use…

          Norway’s consumption of gas is flat for the last 20 years….the purchase of these EV’s did not reduce gas consumption, because most of the driving there is done in ice powered vehicles……so the EV’s didn’t reduce hydrocarbon use….lol….

          • Norway’s consumption of gas is flat for the last 20 years….the purchase of these EV’s did not reduce gas consumption, because most of the driving there is done in ice powered vehicles……the EV owners also own multiple ice vehicles for the real driving….so the EV’s didn’t reduce hydrocarbon use….lol….

            I would bet it is the same everywhere….EV’s didn’t effect gas consumption….

    • “Just as Toyoda gets tossed from the company his grandfather founded, now we hear that *EDs* are peaking.”

      Greatest Freudian slip ever.

  11. It seems that more people are finally waking up to the cold hard truth about EVs. Former newsman John Stossel even has a 2-part video series on Youtube which looks to be exposing the EV lies (Haven’t watched it).

    Looks like EVs may go the way of “self-driving” cars- after BILLIONS of dollars of both government-extorted and private-sector money have gone into promoting them and making them a reality…but hey, I certainly won’t complain if they all fall off the face of the earth or spontaneously combust and are never made again!

  12. “EeeVee Mary” Barra’s ugly threat this morning:

    “Our EVs are transformational in so many ways. We’re earning new customers. Our investments are creating new jobs. We’re moving closer to a world with zero crashes, zero emissions and zero congestion, and we believe our R&D, supply chain, manufacturing scale and distribution network will unlock the profitability of EVs.” — letter to GM shareholders

    Everyone understands what the bolded words mean, right?

    We aren’t gonna be driving. EeeVee Mary’s computer-controlled, ‘mobility services’ dystopia has no need for us, except as passive ‘useless breathers’ occupying a seat.

    ‘We control the horizontal and the vertical,’ she intones … as I reach for my revolver.

  13. As more non-fanbois start trying out and attempting to actually depend on EVs, it is becoming apparent how overpriced and un-useful they really are. The shit is beginning to smell as the shinola wears off! The same is beginning to be said about the “climate change” scam. But it will have to get worse for alot more people before they know all this shit off, and go back to leaving the public the fuck alone, mostly so we can gen on with earning money to be robbed of with taxes. Socialism and government control of everything is a proven dead-end, and it remains to be seen how long it takes to get this through to the majority of dumb-asses in this country!

  14. A few stories have made into the MSM about how NOT practical EV’s are in cold weather and hilly terrain. One guy told how it took three days to go just 500 miles; the reporter tried to spin it as being “unusual circumstances” 😆. Right, unusual for it to be cold in winter.

    • Luckily it’s unusual for it to be hot in summer as well. So the need for an air conditioning compressor to run on those things will surely hardly ever be necessary. Especially in a lovely place like Southern California, Arizona, or Texas. /s

      Can’t wait to see those fools, leveraged to the hilt, sweating their balls off in their so-very-smart EVs. The virtue that can be signaled will totally be worth it all, I’m sure.

      • XM, all ice cars run the ac compressor in the winter too for defrosting. I only know this because my neighbor with a tesla asked me why her windshield never defrosts. I knew it instantly before I even got in her car. Compressor for defroster is std-off. You have to manually turn it on yourself. She said, darn it, there goes more range. yup, hahahah, sucks to be you, and……….. I told ya………………….
        My joke to her all the time when I see her parked somewhere in town, I role the window down and ask “do i need to go get a generator!!!!!????? in a panicked voice” Her replies are not very nice 🙂
        She will not be getting another one.

    • Owning an EV sounds like owning a Super 7 in a cold climate, you can only use it 4 months of the year when it is hot and sunny…

      An EV is used very little because there is no savings over buying gas, there is a huge hassle charging, finding chargers that work, lineups at chargers, wasting hours of your time charging….range anxiety, useless in very cold weather, you can only make short trips or the battery dies,

      The Super 7’s purpose is it is the most fun car to drive….the EV’s purpose is just to virtue signal….buy the super 7….

      the EV’s purpose is just to virtue signal…EV buyers are head cases…

  15. 0% APR Deal Trends

    This month, there are fewer 0 APR offers available than in any other month to date. Bonus cash has been eliminated, in most cases. Consider this: In December, there were fewer than 15 zero-percent financing deals, and there are only five so far this month. Two are fuel-cell vehicles that are only available in California. Two years ago, we listed over 100 models with zero percent financing.

    Salespeople sell the payment, not the price. When 0% APR is the norm, you bump up the base price and work out the time of the loan to get the vehicle off the lot. When 3.5% APR kicks in, drop your price to make the monthly payment work. Either way, that car better not be on the lot at the end of the month or that salesman won’t be. And the “parts shortage” premium isn’t going to hold up much longer either. Not when the grocery store shelves are full of Valentine’s Day candy.

  16. What I feel most people are missing is that if any level of .gov forces people to buy a non ICE vehicle whether it’s in Albania or Zanzibar your choices are extremely limited. So unless YOU can effect a change in government it won’t change and there is no guarantee even if the party you help elect doesn’t flip (uni-party).

    One the ICE infrastructure is forcibly degraded to a certain point it will be hard to restore to even the shape it’s in today. 15 minute cities would only make it worse as in no car for you resulting in a drop in manufacturing efficiency with the end result being cars become a bespoke type item.

  17. This totally demonstrates how the corporate merger with government (what Gerald Celente equates with “fascism”) and the attendant ESG scam has openly and fully abandoned the (now-) mythical “fiduciary responsibility” that corporations were supposed to have for their shareholders.

    Isn’t actually against the law for them to knowingly lose money (and thereby devalue shares) regardless of the reason? Never mind for some bullshit, fallacious pipe dream, that only serves to benefit the totalitarian establishment.

    If they don’t have an existing “get well plan” they’re essentially breaking the law. Or do I have that wrong somehow?

  18. “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Ronald Reagan

    Do you think behind the scenes Ford, GM are getting some government help to keep the lie alive?

    • That’s my thought too, the gov’t is backstopping these companies. It’s explicit with GM but more implicit with Ford, which took an interesting tack of splitting into 2 entities, one electric (to collect the subsidies) and one ICE (to make profits). I’m sure the others are playing ball in their own ways as well.

      It’s like watching a chapter of Mises’s book Socialism come to life.

      • Another example of, “It’s like watching a chapter of Mises’s book Socialism come to life.” is described in this ‘Off Grid with Doug and Stacy’ video:

        ‘This MOM is WARNING about CHICKEN FEED! W O W’

        *Hope any of you chicken owners out there didn’t buy the chicken feed brands mentioned in that video.

        …And, the question now is, what happens next?

        • Maybe the feed has been simply laced with excess salt.

          From link:

          Although the salt requirement of birds is relatively low, adequate levels are essential, and excessive amounts are highly toxic and reduce egg production. Birds require a sensitive balance between necessary and toxic levels of salt (see Table 1).

          Excess dietary salt intake readily causes wet droppings and wet litter. Several feed ingredients, such as fish meal, corn gluten meal, meat meal, whey, and sunflower meal, contain high levels of sodium. When such ingredients are used, the level of supplemental salt (NaCl) in the diet must be reduced.

          • Maybe so, however; “and reduce egg production” is worlds away from totally stop for months on end.

            The rest of what he talks about, totally centralizing ALL food in America, … fun Socialism – & its inevitable negative result – eh?

            Like an evil diabolical plan, or sumthin’.
            And, nobody wants to talk about it.

    • Hans, absolutely!!!! There have been backroom deals for sure.
      Fed: you make these or else.
      F/GM: but it’s billions
      Fed: it will cost you billions either way, so get on board and we will make sure the sheep will have to buy them from you.

  19. Where I’m at I saw one EV yesterday. It had it’s flashers on and was driving sub 50 mph on a 70 mph highway. We had a low of -27/high of -2 yesterday and low of -25 today with a high of +2.

    I generally see a hand full of EV’s any time I drive this same route at varying times. I’d like to think that cold like this would make anyone rethink buying an EV, but it will soon be forgotten like a blip on the radar.

    If there’s one thing that has certainly grown in orders of magnitude over the past 20 years, it’s short memories.

    • Hi Liberty,

      Yes, a column about how oil may be renewable should be an interesting read. For years we’ve been pounded with the message that oil is NOT renewable and wind & solar IS renewable. However, it’s become increasingly obvious the past few years that modern civilization CAN’T run on wind & solar alone, as the wind doesn’t always blow, and most parts of the world don’t get sun 24/7, but we still have these climate change zealots who bleat “End fossil fuels now!”, while the psychopaths at the WEF are likely laughing at such people bleating that.

      • Hi John,

        One thing is certain about oil – the amount available is enormous. The “Peak Oil” assertions have proved to be utterly wrong. Indeed, there is so much oil it had become a problem – for those who wanted to restrict our freedom of movement and increase our cost of life. It is not a coincidence that the EV push became a shove at just the same time that (under Trump) America had become self-sufficient as regards oil and was on the verge of becoming a net exporter.

        For that reason, Trump had to go, too.

        • Here’s the “science” the establishment tells us to trust when you google “abiotic oil”:

          “The abiogenic petroleum origin is a fringe science which proposes that most of earth’s petroleum and natural gas deposits were formed inorganically. . .”

            • I found your site off of a Revolver link. I then viewed your video of your Trans Am exhaust – only true car guys do that. I have an old VHS camcorder clip back in 1989 of my Monte Carlo SS clone exhaust. This is my new favorite site!

              • Good morning, Steve!

                Thanks for the words – and glad to have you with us!

                I had a buddy in high school who owned a ’71 GTX 440. It had a pair of gattling gun exhaust tips I thought were almost as cool as the Pontiac GTO/Trans-Am splitters.

        • Yup….. Re: lithium. Which is also not renewable – which oil may be (a subject for another column)
          Oil is created by the Earth. How much, and how long it takes is unknown. And yes, the amount avail. is more enormous than anyone can fathom. It’s only restriction at the moment is access, or can we get at it.
          All energy on the Earth is a product of the Sun.

  20. ‘Kahuna B: But then we’ll be losing millions this year [2023]!’ — eric

    In the rearview mirror, before the price cuts, 2022 ended on a strong note for GM:

    ‘General Motors solidly beat Wall Street’s for the fourth quarter, while forecasting another strong year of results in 2023. Shares were up more than 3% in premarket trading Tuesday.

    Here’s how GM performed to close out last year, compared with analysts’ estimates:

    Adjusted earnings per share: $2.12 vs. $1.69 expected
    Revenue: $43.11 billion vs. $40.65 billion expected

    Still, the automaker is facing a margin squeeze. GM’s net income slipped last year, down by less than 1% to $9.9 billion, with a 6.3% profit margin. Its adjusted [excluding interest and taxes] profit margin was 9.2%, down 2.1 percentage points compared to the previous year.

    Shrinking margins in 2022, even as Jay Powell hikes financing costs another 0.25% tomorrow afternoon?

    Danger, danger, EeeVee Mary!

    • Tesla Price Cuts Signal Growing Margin Malaise…more then EV’s though

      But the new trend goes well beyond the EV industry, and could quickly become the next big earnings headwind.

      Companies that until now have defended their profitability from surging cost inflation by charging more are finding that they have less power to do so as price growth starts to cool. Indeed, many are now starting to lower prices at a time when expenses remain inflated, putting their profit margins under strain.

      Lower pricing power, demand destruction, wage pressures and higher interest expenses stand to push margins lower, they say.

      The list of firms showing signs of earnings stress is growing. Ford and Chinese electric-vehicle maker Xpeng Inc. have both followed Tesla’s lead on price, while apparel makers Lululemon Athletica Inc. and Hennes & Mauritz AB served notice of the impact on margins as they marked down goods to help manage bulging inventory just as expenses are soaring.

      Elsewhere, video-games makers including Ubisoft Entertainment SA are offering discounts to counter weak consumer demand, an issue that’s also a thorn in the side of appliance maker Electrolux AB.

      Chinese electric vehicle maker Xpeng has pushed back its profit goal until 2025, after having previously aimed to break even by late 2023 or early 2024.

      The technology sector faces a particularly tough time. Companies from Inc. to Alphabet Inc.’s Google have recently laid off staff after years of growth. The sector announced 97,171 job cuts in 2022, up 649% compared with the previous year

    • GM and the others can sell the EV’s at a loss because of ESG revenue for virtue signalling…any black ink on their balance sheet is 100% from ESG payments from the government to virtue signal greenness…lol

      • ESG…another trick to pretend the corpse is still alive…the economy is dead….but….hand out ESG money to big corporations to delay bankruptcy……so the corpse looks alive still…..another scam….ESG….giving money to billionaire owned big corporations…..but it is so green….lol

  21. Another factor in the EV market is likely market saturation. That most of those interested in an EV already have one. That there is not enough generation and grid capacity to feed many more of them. Add to that the simple word of mouth tales of the uselessness of them for most people, and here we are. It will be interesting to see if the price cuts on EVs result in a significant increase in sales. I’m suspecting not. Ain’t central planning by government grand?
    “Five year plans and new deals
    Wrapped in golden chains”
    CCW “Who’ll stop the rain”.

    • Very good point John, hadn’t thought of that, and I should have. Happens to many things.
      Even a little bike dealer in my town. Did great for 3-4 years. Then they went up in smoke.
      I asked the owner: “Everyone that wanted one bought one”


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