With Tesla serving as the top electric vehicle (EV) on the market, other automakers are trying to play catch up in terms of technology, charging accessibility, and acceptance. Those buying their EVs are trying to get something cheap to make the cost of ownership lower. So when Honda and General Motors announced plans to build an inexpensive, stripped-down EV together, expectations for them to challenge Tesla’s sales numbers were high.
Now those expectations will go unfulfilled.
Announcing the split on October 25th, the plan was estimated to be a $5 billion project and could strike a massive blow to Tesla’s operations. In a joint statement, the companies announced, “After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market.” According to Reuters, bother companies announced they each remain extensively committed to creating an affordable EV but want to do so separately.
As President Biden ultimately makes the market unfriendly for car companies to continue down the gas-powered route, people are finding themselves with little choice but to make the jump. A tough proposition with so few options and so many massive risks involved in EV ownership, people are largely being forced into the decision. Biden could have saved this deal by making the idea of a cheap EV more lucrative for companies or those buying them, but he refused to be of any help.
Cheap EVs might sound like dreams come true for many. After watching the two companies since their announcement in April 2022, it became clear that their 2027 goal wasn’t going to happen. There isn’t enough meat on the bone for cheap EVs at the moment, and the market for them isn’t demanding them enough to make it profitable by selling them in bulk.
For conservatives, this is a mixed bag. While it proves that cheap EVs are impossible at this point, it also underscores the need for massive development for them to be affordable. That’s just another area for Biden to burn more taxpayer money.