The world is tearing into China over its cheap EVs. While some countries welcome affordable cars with welcome arms, others that rely so heavily on manufacturing for their economies aren't exactly thrilled. This has resulted in the government strong-arming these EVs built with "unfair subsidization"—though some have since softened. Meanwhile, the EV makers that do serve the U.S. market are trying new things to juice sales.
Welcome back to Critical Materials, your daily roundup for all things EV and automotive tech. Today, we're chatting about the EU cutting tariffs for some automakers, EV makers looking down-market to boost sales, and the states that fail to meet the ideal EV-to-charger ratio. Let's jump in.
30%: Deals, Cheaper Models And Other Weapons To Take EVs Mainstream
It's no secret that EVs are in a bit of a sales slump lately. They're still selling fast, just not at the rate automakers planned for. A large number of those companies won't let you forget it, either, as many walk back promises of an all-EV future—at least before the top of the decade like many previously planned. That seems like a major red flag for many EV-only automakers that have bet big on battery tech.
It seems like many of these automakers already have plans in place.
Let's recall Tesla's master plan (which is, unlike its promise of all cars being equipped with hardware capable of Full Self-Driving, still available on its website) for inspiration. Build a low-volume, high-profit sports car to fund a sporty four-door family sedan. Then use the money from that sporty sedan to build an even cheaper car. Tesla's original figure was $35,000 and it's nearly met that with the Model 3 coming in at $38,990 before incentives, not accounting for inflation, of course.
But now Tesla is facing a problem: its cars are old. Even the Model 3, only recently refreshed, feels old given the amount of new tech being thrown around by other automakers. It needs something else to reach a new audience of buyers, and that something is a lower-priced EV.
Meanwhile, other electric automakers like Rivian and Lucid are rapidly trying to play catch-up. Both are stuck in what we can call "The Model S Phase," meaning vehicles are still priced well above $50,000 and unattainable by most new car buyers.
Rivian's current cheapest vehicle, the R1T, starts at $71,700—the Lucid Air at $69,900.In order to grow, the automakers know they have to reach downward to a new market of buyers.
Rivian's plan is a quick one-two punch with an all-new architecture that has onlookers pretty excited. First is the Rivian R2, Rivian's mid-size SUV targeting a $45,000 price tag. The R2 will be followed by the even cheaper Rivian R3 (including the sporty R3X hot hatch).
Meanwhile, Lucid is working on an SUV of its own, but it won't be cheaper than the Air. The upcoming Lucid Gravity SUV is expected to start at $80,000. Following the gravity will be Lucid's foray into a the lower market with its third passenger model, supposedly called "Earth," with a starting price of around $48,000.
Back to Tesla for a moment. Tesla originally faced reports of scrapping its cheapest car ever: the $25,000 EV. Initial reports cited that the vehicle was put on the back burner indefinitely to ensure Tesla could make room for its robotaxi, though extreme pushback from shareholders eventually bullied Tesla into confirming that the product was still in the works.
Both automakers have also launched referral programs that follow in Tesla's footsteps. Rivian's program has recently launched its first-ever attempt at the program that offers credits towards the company's Gear Shop and R1 shop, or charging credits for the Rivian Adventure Network. And if you get enough people to use your credit, you could even use the credits towards a car in the automaker's inventory.
Lucid's referral program launched almost a year ago and offers buyers between $750 and $1,250 off a new vehicle. Owners will receive points redeemable for Lucid accessories, gear, limited-edition products, and "Lucid Experiences" like factory tours.
Tesla has also re-launched its referral program—just don't expect a free next-gen Roadster out of it this time.
60%: China Proposes New Negotiations After EU Cuts Tariffs On Some Automakers
The European Union will lower its final proposed tariffs on Chinese-built EV imports from Tesla and select other automakers.
On Tuesday, a firm familiar with the matter confirmed to Reuters that the EU decided to slash the proposed rates after reviewing submissions from affected automakers. The submissions (submitted by Tesla and others that import made-in-China vehicles to member countries) apparently worked, as a number of manufacturers are now set to catch a bigger break.
Reuters explains:
Tesla's proposed tariff rate will drop to 7.8%, from 9%, the source said. For BYD, there was no change to its 17% tariff. For Geely, the new rate would be 18.8% from a previous 19.3%. A peak rate of 35.3% would apply to SAIC and other companies not cooperating with EU investigation, the source said.
These tariffs are on top of the EU's standard 10% import duty for cars.
Last month, the EU set out its initial proposal for final duties, establishing a separate rate of 9% for Tesla EVs, a sharp reduction from the higher duty that will apply to all cooperating companies—now set at 20.7%.
This tariff is due to apply to certain Chinese producers such as Chery, Great Wall Motor Co and NIO and a number of joint ventures between Chinese companies and EU automakers.
Ahead of this revelation was news that China is ready to re-open negotiations with the EU over duty fees.
While visiting the EU for trade talks, China's Vice Commerce Minister reportedly offered to "engage in dialogue and consultations" regarding the tariffs proposed for Chinese-built EVs.
"China is willing to continue to work closely with the European side to reach a solution that meets the common interests of both sides and is in line with WTO rules, so as to promote the healthy and stable development of China-EU economic and trade relations," said the Ministry of Commerce in a statement.
Meanwhile, the U.S. and Canada are holding the line—at least for now. Both countries have proposed 100% tariffs across the board on qualifying imports, though Tesla has reportedly reached out to Canada in an attempt to have its duty fees reduced.
The proposed final duties will go to a vote in front of the EU's 27 member countries. It's currently set to pass unless a majority (65%, or 15 countries) vote against it.
90%: 47 States Fail To Meet Ideal EV-to-Charger Ratio
If you don't live in Vermont, Massachusetts, Rhode Island, or Washington D.C., I've got some bad news for you. A new report says that every other state in the U.S. has failed to meet a crucial EV-to-charger ratio.
The report, which was penned by Here Technologies and SBD Automotive and reported by Automotive News, measures the number of Level 2 and DC Fast chargers against the number of registered EVs in the state. The actual data is then compared against the optimal numbers to determine just how well-off EV owners are in their respective states. And despite the number of EV chargers growing substantially over the last four years, the report doesn't look great.
It's important to note that this isn't just a static ratio. The authors of the study consider how charging has grown to determine the ideal algorithm to use. Its inspiration? The more mature charging network in Europe.
This means that the ideal ratio is more than just the raw number of EVs and the number of chargers. It also adjusts the target ratio based on the state's public highway infrastructure, population density, and the rate of EV adoption. So a state's target ratio could be anywhere between 4:1 and 28.6:1, depending on these factors.
To give a quick glimpse at the worst offenders: New Jersey at 9.8:1 (target: 28.6), Hawaii at 26.6:1 (target: 9.3), Oklahoma at 3:1 (target: 19.7:1), Alaska at 5.7:1 (target: 21.2), and Illinois at 7.9:1 (target: 23.1). Florida, Arizona, Texas, Washington, and California get honorable mentions.
Charging has always been a hotdog and bun problem, and a 1:1 ratio simply isn't the solution. It's important to point out that the U.S. is working on propping up EV charging infrastructure across the country. The National Electric Vehicle Infrastructure (NEVI) Formula Program is doling out funding for additional chargers in various states, though it is admittedly taking longer than the public expected to see results.
Even so, the U.S. charging infrastructure is growing at a rate of around 1,000 chargers per week—that's a pretty good indication that things are moving in the right direction.
100%: How Often Are You Struggling To Find A Public Charger?
With all this talk of public charging infrastructure in need of improvement, I'm reflecting on my own charging experiences. Sure, I've had issues with chargers actually functioning when I've plugged in, but finding one has never really been an issue for me while driving up and down the East Coast aside from overnight parking at hotels.
There are other variables, though. The time of year, age of chargers, time of day—all can affect just how available chargers are. But the actual placement of the chargers has been a non-issue at least.
That being said, I want to know how your public charging experience is going. Are you constantly needing to scour PlugShare to find your next juice-up, or are the roads you travel typically well-equipped? Let me know in the comments.
