Despite countless headwinds, 2024 is proving to be a banner year for electric vehicles all over the globe—even if sales haven't been as sky-high as the automakers once predicted. More and more Americans in particular are warming up to them. But just how good is this crop of EVs that we have access to, really? Lucid Motors' CEO says he's not impressed, and he'll tell you why.
Welcome back to Critical Materials, your daily roundup for all things EV and automotive tech. Today, we're chatting about Europe's face-off with China's automotive industry, Lucid's CEO telling the world that America's EV choices "suck," and BYD nipping at Ford's heels. Let's jump in.
30%: Europe Says There's No Quick Way Out For China's Automakers
Europe and China have been duking it out over EV tariffs over the last few months. The European Union recently began to impose tariffs against Chinese automakers importing vehicles into the bloc, which has struck a nerve with the automakers now stuck paying hefty duty fees on imported EVs. And that's got China's Ministry of Commerce just as heated.
The two global powers have since begun talks on amicably resolving tariffs, which Europe says are a direct result of China unfairly subsidizing EVs that are now flooding the European market. While nothing has been set in stone just yet, both sides have reportedly touted some progress—but there's a long road ahead before the matter is resolved.
Folks familiar with the matter who spoke with Automotive News on the condition of anonymity say that the chances of a deal being made, other than what is already in effect, are "slim for now." They added that China hasn't budged on the EU's firm requirement to ensure that any binding agreement is enforceable and matches the effect of the tariffs that have officially been adopted by the bloc.
Another speed bump is China's push for an umbrella tariff for all affected brands. Currently, the EU has imposed tariffs between 7% and 35%, depending on how cooperative the automaker was during the investigation into government subsidies. China argued that this was against the World Trade Organization's rules and filed an official complaint after the tariffs went into effect and has since threatened to levy duty fees on imported goods like dairy, pork, and brandy.
So what's the solution here? Realistically, the sides remain at odds here for a number of reasons—hence the exploratory talks. The most recent possibility is a complex trade mechanism called price undertakings, which essentially are a strict set of regulatory measures meant to control prices and volume of exports without relying on tariffs. This would effectively set a bar for how low automakers can sell their vehicles, which could effectively control imported vehicle prices and give similar price protections as tariffs.
Until the sides agree on something, it seems the two are at a stalemate. Europe wants to protect its automakers while China wants to give its companies as much of a benefit as possible to ensure the country's placement as a global automotive powerhouse. But now the issue is stretching into a flex-off of global trade dynamics and economic influence, bringing productive trade talks to a crawl.
60%: Most EVs Offered In America 'Frankly Suck,' Says Lucid CEO
Lucid Motors' CEO Peter Rawlinson isn't someone who sugarcoats things. Whether it's about rotobaxis or EV pickups, the executive likes to let his perception—or, as he believes, the reality—of the industry rip. Next up on his roast list: electric cars sold in America.
According to Rawlinson, the choices Americans have for EVs suck. His words, not mine. And it all comes down to being offered a plethora of otherwise watered-down battery-powered cars that could have been so much more. We're talking about better range, better quality, better performance. Just plain better. But instead, we got various forms of The Blob.
“It’s not perception. It’s reality,” Rawlinson said during an episode of Cars and Culture, “Many people [in America] have driven EVs that frankly suck. I know because I drive all the competition. So I think the American public has been ill-served by underwhelming EVs.”
The CEO seems to believe that America got sold short on EVs. Almost every automaker compromised in some department in order to deliver to Stateside consumers, and if American car buyers got one taste of what it's like to drive a Lucid they would see exactly what they're missing out on. That would maybe even solve both the existential EV crisis and maybe even Lucid's financial woes.
Now, I'm not saying that Rawlinson is totally unbiased. After all, he does head up a company that sells luxury, high-performance EVs equipped with some of the best tech in the game. But he might be onto something here. Tesla, for example, has almost meme-worthy QC problems despite having the Model S on sale since 2012. Volkswagen's family of EVs has a zero-to-60 time similar to that of a front-loading washing machine. And don't get me started on the ID. Buzz's range.
Sure, there are some outliers, but Rawlinson's callout is about the industry as a whole. It's a cry for carmakers to do better, which is easy to say when your cars sell for nearly three times that of the competition. But then again, Lucid's bet big is still pouring bottomless bucks into its cars—the problem is that it's still losing even bigger on every single one that it sells.
And we constantly see EVs coming out of China that drive longer, have better batteries and offer much more advanced software than the stuff we get at home. Most Americans have no perception of what those cars are like, as tariffs keep them out of our market. But Rawlinson is right if he's implying that the competition is probably much better than we realize.
Every automaker should aim higher because competition begets innovation. But keep in mind that automakers are working with the budget constraints of the average American consumer which is already stretched thin given the climbing average transaction price in the market. It's a good goal, though, and it's worth checking out the full interview to understand Rawlinson's point even more.
90%: BYD Is Hot On Ford's Heels
BYD isn't just a blip on the radar anymore. The Chinese automaker has broken through the cut-throat market of Chinese EVs and is gunning straight for the top of the world. BYD already bested Tesla in revenue last quarter and now it's set its sights on the Detroit three.
Based on BYD's full-throttle performance into the year-end quarter, analysts see the writing on the walls. The Chinese giant seems to have already tied with Ford's annual output and based on both automakers' sales figures over the past three quarters, BYD is set to outpace Ford in number of total deliveries by Dec. 31.
Bloomberg has the scoop on BYD's overtaking:
BYD kicked off the December quarter by selling a record half a million vehicles in October. That impressive number puts it nearly on par with Ford year-to-date and almost all analysts covering BYD expect the momentum to continue. The US automaker, which only reports global sales on a quarterly basis, has been averaging around 1.1 million vehicles a quarter for the past three such periods.
Surpassing one of Detroit’s big three carmakers will be possible if BYD keeps up its strong run. Demand in China is in part being stoked by government subsidies encouraging people to trade in their older EVs or combustion engine cars, while BYD’s strong line up of hybrids is good for consumers who aren’t quite ready to make the switch to a fully electric vehicle.
BYD's secret sauce is surprisingly simple—it's just figured out how to run a car company with a lot of different offerings for a lot of different markets. Need a cheap EV? BYD has something for that. A capable hybrid? BYD's there for you. Or how about something luxurious, stylish, and efficient? Yeah, BYD has that covered also. It's the polar opposite of Tesla's rallying cry for simple cars with high margins, and it's proving to work wonders for BYD so far.
Ford on the other hand is playing a bit of catchup. It's working to navigate production slowdowns amid less-than-anticipated demand for its EVs. Meanwhile, the Blue Oval is learning how to juggle sales of multiple powertrains and mend bruised dealer relationships along the way. It may have the upper hand on legacy industry footings, but that clearly isn't enough to stop a newcomer like BYD from threatening the throne.
So here we are a Chinese automaker building its dreams while getting ready to overtake Ford—one of America's oldest automakers—on a global scale. Maybe this should serve as a wake up call to the industry that the Old Guards' way of selling might not be the way of the future.
100%: Do America's EV Choices Really Suck?
Peter Rawlinson said some fightin' words. America's EV choices suck? Well let's talk about that.
Sure, we might not have $10,000 EVs from BYD or Teslas built without creaks and paint chips from the factory. But we have choices. The question is: are they good choices?
I personally feel like EVs are still in their infancy stage—not quite first-generation, but maybe first modern generation. Automakers are still learning about battery chemistry, efficiency, and how to cater to an entirely new market where new EVs are 16% more expensive than their gas-powered counterparts and used car values sink like they're wearing a Chicago overcoat.
So this is where I want to hear it from you: do America's EV choices really suck? Or has Rawlinson lost his mind? Let me know in the comments.
