Hidden Costs, Question Marks Surrounding Electric Vehicles

Hidden Costs, Question Marks Surrounding Electric Vehicles

August 10, 2021

Government-sponsored market manipulation has created a growing – though still relatively small – demand for electric vehicles. Yet this new marketplace is another indication of what can go wrong when the government tries to pick winners and losers.

In the UK, the government has banned new diesel and gas cars by 2030. As manufacturers race to switch their production and assembly lines, some critical details have been glossed over – including whether there are sufficient quantities of batteries to meet this newfound demand. Many experts are expressing concerns that the new artificial demand for EVs is outpacing the ability to test and manufacture new battery technologies.

In addition, automobile users are just beginning to get a sense of the increased costs that come with owning an electric vehicle. Last week, Automotive News reported on a new study by analytics firm We Predict that found that EVs were 2.3 more times more expensive to service than gasoline-powered cars after three months of ownership.

Finally, there is the issue of transforming the landscape of automobile infrastructure surrounding our country, and the costs associated with that. Today’s Wall Street Journal reports on the challenges facing many small businesses:

American gas-station owners are facing a tough decision over whether to invest in electric-vehicle charging stations, a costly bet that currently makes little financial sense but might help future-proof their businesses.

Some gas stations, convenience stores and truck stops are adding chargers to test the technology and protect their market share for the long run. Others say they crunched the numbers and decided they can’t justify the cost, given the small share of electric-vehicle drivers. Charging units and installation typically cost upward of $100,000 each, and might entail the expense of tearing up pavement to lay conduit.

The marketplace and working families should decide if Electric vehicles are the future, but right now there is a future being imposed on an artificial timetable that is dramatically increasing costs for American families and small businesses. Unfortunately, costs and competitiveness are two factors that rarely sway radical environmentalists or their favorite policymakers.