President Joe Biden and the auto industry have been championing electric vehicles, but their growth has not been as rapid as anticipated. Despite support from the Biden administration, recent reports highlight challenges faced by EVs as car manufacturers strive to expand the market.
Notably, Tesla, a key player in the electric vehicle market, has encountered difficulties. The company announced a 10% reduction in its global workforce and, more recently, decided to cut its entire electric vehicle charging division. This move is a setback for the growth of the charging network in the country. CEO Elon Musk reassured that Tesla plans to continue expanding the Supercharger network, albeit at a slower pace.
In addition to Tesla’s struggles, Ford reported a $1.3 billion loss in its electric vehicle division in the first quarter of 2024. This significant loss is attributed to lower vehicle prices and increased spending on research and development. Despite generating $100 million in revenue, Ford’s electric vehicle division continues to face challenges.
On a positive note, the Biden administration recently relaxed restrictions on electric vehicle imports, allowing automakers to use some Chinese materials and still qualify for a tax credit. This move aims to support U.S. manufacturers of battery materials, who are striving to compete with China in this industry. However, critics argue that dependence on Chinese materials poses a national security risk and should be addressed promptly.
