(AIER)—In August, Ford announced it was spiking its plan to roll out an all-electric three-row SUV, citing low consumer demand and a crowded market.
“We’re seeing a tremendous amount of competition,” John Lawler, Ford vice chair and CFO, told journalists in a conference call. “In fact, S&P Global … said that there’s about 143 EVs in the pipeline right now for North America — and most of those are two-row and three-row SUVs.”
The news that Ford was scrapping its SUV EV came just a month after the company announced a manufacturing pivot at its plant in Oakville, Ontario. The plant, which had been earmarked for EV production, was shifting production to Ford’s F-series pickups, its flagship gas-powered trucks.
“The move,” the New York Times reported, “is the latest example of how automakers are pulling back on aggressive investment plans in response to the slowing growth of electric vehicle sales.”
The Cost Problem
Ford’s latest pullback from EVs is no surprise to people who’ve been paying attention to the EV market.
More than a year ago I pointed out that news outlets were reporting of EVs “piling up” at dealership lots because of low consumer demand, which ultimately prompted Ford to halve production of its popular F-150 Lightning, reducing output to about 1,600 vehicles per week.
The reality is both lawmakers and Washington and auto companies severely misjudged consumer demand for EVs, which has proven far lower than estimates had projected. There are many reasons for the low demand, but the primary reasons are concerns consumers have with EVs.
Price is one factor. Research in recent years has indicated that despite government subsidies, EVs typically cost on average between $5,000 and $10,000 more than a similar gas-powered vehicle. That EVs are more expensive than gas-powered cars may surprise few readers, but what’s less known is that the price gap is widening.
“EV prices aren’t just going up; they are rising faster than inflation…faster than [internal combustion engine] vehicle prices” Ashley Nunes, a senior research associate at Harvard Law School, testified before Congress in 2023, noting that the inflation-adjusted average price of a new EV had risen to over $66,000 in 2022, compared to $44,000 in 2011.
The Charging Problem
Cost, however, isn’t the only concern of consumers.
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An overwhelming percentage of Americans—77 percent, according to a 2023 survey led by the Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago—have concerns about how they would charge an EV if they bought one.
These concerns are not baseless. In February, the New York Times profiled a man Michael Puglia who had recently bought a Ford F-150 Lightning and said it was the “coolest” vehicle he’d ever owned.
“It’s unbelievably fast and responsive,” the Ann Arbor, Mich., anesthesiologist told reporter Neal E. Boudette. “The technology is amazing.”
The problem was the vehicle’s range. When the weather grew colder, Puglia found that the distance his vehicle could travel fell dramatically. His faith in the $79,000 truck dampened, and he found himself wondering if he should sell it.
“People say ‘range anxiety’ — it’s like it’s the driver’s fault,” Puglia told the Times. “But it’s not our fault. It’s actually they’re not telling us what the real range is. The truck says it’s 300 miles. I don’t think I’ve ever gotten that.”
The range problem of electric vehicles is exacerbated by another challenge facing EVs: a lack of charging stations. Nationwide, there was 68,475 private and public charging stations at the beginning of the year, according to the Department of Energy. That’s more than twice the number in 2020, but it’s still just a third of the number of gas stations and far below projections.
The range problem of electric vehicles is exacerbated by another challenge facing EVs: a lack of charging stations. Nationwide, there was 68,475 private and public charging stations at the beginning of the year, according to the Department of Energy. That’s more than twice the number in 2020, but it’s still just a third of the number of gas stations and far below projections.
One reason charging infrastructure has lagged is due to the federal government’s incompetence. Nearly three years ago, the U.S. Departments of Transportation and Energy announced a $5 billion spending effort to build fleets of charging stations to lead “an electric vehicle revolution.” As of the summer of 2024, just seven charging stations had been built.
“That is pathetic,” said US Sen. Jeff Merkley, a Democrat from Oregon. “We’re now three years into this … That is a vast administrative failure.”
Of Profits, and Losses
The decision of automakers to bet big on EV adoption was in some ways rational, in that they were responding to powers in Washington that were pressuring them and incentivizing them to expand electrical vehicle production. But the costs of listening to industry experts and politicians in Washington instead of consumers — and profits — have been severe.
In August 2023, NPR reported that Ford CEO Jim Farley was charging ahead with its ambitious EV expansion even though the company was “losing money on each EV it sells” and consumer demand for EVs was plummeting. Farley’s reasoning was that Ford was attracting new customers, but it was a costly endeavor. Ford reported a loss of $4.7 billion on EV sales in 2023, roughly $40,525 per vehicle sold.
“If the great mass of consumers dislike purple cars with green polka dots, then a society based on private property will not waste resources in the production of such odd cars,” wrote economist Robert Murphy. “Any eccentric producer who flouted the wishes of his customers and churned out vehicles to suit his idiosyncratic tastes, would soon go out of business.”
Murphy wrote these words more than twenty years ago, but in a sense they describe Ford’s business strategy. By producing mass amounts of pricey EVs that consumers didn’t want and selling them at a loss, Ford was in a sense cranking out green polka dotted cars. It was a losing strategy and path to going out of business.
Ford’s massive pullback from EVs is part of a broader return to economic reality. Companies flourish in a free market economy not by serving bureaucrats but consumers, the true “bosses.”
“They, by their buying and by their abstention from buying, decide who should own the capital and run the plants,” Mises wrote. “They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser.”
Automakers bear responsibility for their decision, and paid the price in the form of losses. But this misallocation of resources likely could have been avoided if not for the federal government’s hamfisted attempts to coerce Americans into EVs, which included not just taxpayer-funded subsidies, but overt pressure from Washington and federal regulations designed to phase-out gas-powered cars.
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Fortunately, the centrally planned EV revolution now appears dead in the water, or at least in full retreat. A spokesman for Kamala Harris recently told Axios the presidential candidate “does not support an electric vehicle mandate.”
Forcing Americans into EVs was always a bad idea economically, but it now appears to be a bad idea politically, too.
That’s good news for Ford and American consumers.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
