Electric Cars Are An Expensive Scam

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In March, Joe Biden signed an executive order to “set a target” for half of all new vehicles sold in 2030 to be zero-emission. California claims it is banning combustion engines in all new cars in about 10 years. So carmakers adopt business models to deal with these distorted incentives and contrived theoretical markets of the future.

In today’s real-world economy, though, Ford announced this week that it was firing at least 1,000 employees — many of them white-collar workers on the EV side. Ford projects it’s going to lose $3 billion on electric vehicles in 2023, bringing its EV losses to $5.1 billion over two years. In 2021, Ford reportedly lost $34,000 on every EV it made. This year it was losing more than $58,000 on every EV. In a normal world, Ford would be dramatically scaling back EV production, not expanding it. Remember that next time we need to bail out Detroit.

In the real world, there is Lordstown. In 2019, after GM — which also loses money on every EV sold — shut down a plant in Lordstown, Ohio, then-President Donald Trump made a big deal of publicly pressuring the auto giant to rectify the situation. So CEO Mary Barra lent Lordstown Motors, a new EV outfit, $40 million to retrofit the plant. Ohio also gave the company another $60 million.

You may remember the widespread glowing coverage of Lordstown. After Joe Biden signed his “Buy American” executive order, promising to replace the entire U.S. federal fleet with EVs, Lordstown’s stock shot up.

By the start of this year, Lordstown had manufactured 31 vehicles total. Six had been sold to actual consumers. (But to be fair, five would be recalled — following a recall of 19.) The stock was trading at barely a dollar. Tech-funding giant Foxconn was pulling its $170 million. And this week the company filed for bankruptcy.

Climate alarmists might believe EVs are necessary to save the planet. That’s fine. Using their standard, however, a bike is an innovation. Because even on their terms, the usefulness of EVs is highly debatable. Most of the energy that powers them is derived from fossil fuels. The manufacturing of an EV has a negligible positive benefit for the environment, if any.

And the fact is that if EVs were more efficient and saved us money, as enviros and politicians claim, consumers wouldn’t have to be compelled into using them and companies wouldn’t have to be bribed into producing them