{"id":2072847,"date":"2023-10-19T10:26:01","date_gmt":"2023-10-19T14:26:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tesla-gm-ford-hit-the-brakes-on-electric-vehicle-production-as-they-come-to-painful-realization\/"},"modified":"2023-10-19T10:31:25","modified_gmt":"2023-10-19T14:31:25","slug":"tesla-gm-ford-hit-the-brakes-on-electric-vehicle-production-as-they-come-to-painful-realization","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tesla-gm-ford-hit-the-brakes-on-electric-vehicle-production-as-they-come-to-painful-realization\/","title":{"rendered":"Tesla, GM, and Ford halt electric vehicle production as they face a harsh reality."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftesla-gm-ford-hit-the-brakes-on-electric-vehicle-production-as-they-come-to-painful-realization%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2072847&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Tesla, \u200cGM, Ford Hit the Brakes \u2062on Electric Vehicle Production\u200d as They Come to\u2063 Painful Realization<\/h2>\n<p>Automakers have had a shocking realization:\u2063 Americans are not\u200b getting a charge out of the\u2064 electric vehicles companies\u2063 are producing.<\/p>\n<p>Tesla is now putting its expansion plans\u200d in neutral, CEO\u2064 Elon Musk announced Wednesday, according to <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/tesla-joins-gm-ford-slowing-ev-factory-ramp-demand-fears-spread-2023-10-19\/?utm_source=twitter&#038;utm_medium=Social\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>.<\/p>\n<p>Musk said he was worried interest \u200crates might make \u200bvehicles cost\u200d more than people could afford, and\u200b until the murky\u2063 picture of <a href=\"https:\/\/www.westernjournal.com\/bidenomics-americans-now-need-record-incomes-afford-homes\/\" target=\"_blank\" rel=\"noopener\">Bidenomics<\/a> settles, Tesla was\u2062 not going to zoom into high gear with its \u2063plans for a factory\u2063 in\u2062 Mexico.<\/p>\n<p>\u201cPeople hesitate to buy a new car if there\u2019s uncertainty in\u200c the economy,\u201d he said during a post-earnings call. \u201cI \u200bdon\u2019t want to be going\u200d into top \u200cspeed into \u200buncertainty.\u201d<\/p>\n<p>\u201cIf\u2063 interest rates\u200d remain high \u2026 it\u2019s that \u200dmuch harder \u2064for people to buy the car. They\u200d simply can\u2019t afford it,\u201d Musk said.<\/p>\n<p data-testid=\"paragraph-3\">He is not alone in being cautious.\u2063 On Tuesday, GM said <a href=\"https:\/\/www.westernjournal.com\/ford-ceo-received-reality-check-taking-electric-f-150-lightning-road-trip\/\" target=\"_blank\" rel=\"noopener\">slow demand<\/a> meant it was pushing back\u2064 by a year \u2064a\u2064 plan to have a Michigan \u2064plant <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tesla-gm-ford-hit-the-brakes-on-electric-vehicle-production-as-they-come-to-painful-realization\/\" title=\"Tesla, GM, and Ford halt electric vehicle production as they face a harsh reality.\">produce electric pickup trucks<\/a>.<\/p>\n<p data-testid=\"paragraph-3\">\u201cWe\u2019re \u200blooking at EV \u2062demand \u200dand the trendline for EVs\u2063 is stabilizing. It is not rising as fast as originally \u2062forecasted,\u201d GM\u200c spokesman Kevin\u200c Kelly \u200bsaid, according\u2062 to the <a href=\"https:\/\/www.freep.com\/story\/money\/cars\/general-motors\/2023\/10\/17\/gm-production-ev-pickups-orion-assembly-plant-silverado-sierra\/71216131007\/\" target=\"_blank\" rel=\"noopener\">Detroit Free Press<\/a>.<\/p>\n<p>Last \u200bweek, <a href=\"https:\/\/www.westernjournal.com\/ford-lays-off-hundreds-workers-building-electric-f-150\/\" target=\"_blank\" rel=\"noopener\">Ford\u200c announced<\/a> it was\u200c cutting one\u200c shift \u2064at a\u2063 plant \u2063making electric F-150 \u200bpickup trucks\u200c \u2014 resulting in about 700 lost jobs \u200d\u2014 after indicating in July it was moving more money into other types \u2064of vehicles customers might \u2063actually \u2063buy.<\/p>\n<p>\u201cThere was a bit of exuberant thinking that the market would adopt EVs at the same rate early adopters were,\u201d said Beau Boeckmann, president of Galpin Motors in\u2064 North Hills,\u200d California, one of the nation\u2019s largest Ford dealerships,\u2064 according to\u200d <a href=\"https:\/\/www.wsj.com\/business\/autos\/electric-vehicle-buyer-interest-67b407cb\" target=\"_blank\" rel=\"noopener\">The Wall\u2062 Street Journal<\/a>.<\/p>\n<p>\u201cThe curve isn\u2019t accelerating as quickly as I \u2062think\u200b a lot of people expected,\u201d John Lawler, Ford \u200bMotor\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tesla-cfo-zachary-kirkhorn-steps-down-successor-known\/\" title=\"Tesla's CFO, Zachary Kirkhorn, resigns; replacement identified.\">chief financial \u2064officer<\/a>, \u200dsaid \u200dlast month \u2062on \u200cthe demand for EVs. \u201cWe\u2019re\u2064 seeing it flatten a \u200bbit.\u201d<\/p>\n<p>Writing on \u200c <a href=\"https:\/\/www.thedrive.com\/news\/gm-is-stalling-ev-production-because-demand-is-falling-off\" target=\"_blank\" rel=\"noopener\">The Drive<\/a>, Pete Holderith\u200b analyzed \u200cthe numbers.<\/p>\n<p>\u201cIt\u200d all comes\u200d back\u2062 to the fact that the era of the early EV adopter is \u2062over,\u201d he \u200dsaid.<\/p>\n<p>\u201cThose customers enthusiastic enough to purchase EVs \u200ddespite their shortcomings largely have already,\u201d \u2064Holderith wrote. \u201cNow, legacy automakers are forced \u2064to reckon\u2064 with mainstream car buyers,\u2064 who tend to define EVs by\u200c their faults: poor charging infrastructure, poor cold\u200d weather\u2062 performance, and \u200bhigh cost.\u201d<\/p>\n<p>Musk \u200csaid\u2063 painful <a href=\"https:\/\/www.westernjournal.com\/governor-declares-bidenomics-state-emergency-suspends-gas-tax\/\" target=\"_blank\" rel=\"noopener\">economic \u200brealities<\/a> are \u200calso driving consumer caution.<\/p>\n<p>\u201cA\u200d large number of people are \u2063living paycheck-to-paycheck and with a lot of debt. They\u2019ve \u2062got credit card debt, mortgage debt. So, that\u2019s the reality \u200bfor most people,\u201d he said, according to <a href=\"https:\/\/www.reuters.com\/business\/elon-musk-interest-rates-uncertainty-teslas-costs-2023-10-19\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>.<\/p>\n<p>\u201cIt\u2019s sometimes difficult for people who are high income earners, and I \u2063would say would be someone who is earning over $200,000 a year to \u200cunderstand\u2062 what life is like for someone who \u2064is earning fifty or sixty or $70,000 per \u200cyear, which\u2064 is most people,\u201d\u200d Musk said.<\/p>\n<p data-testid=\"paragraph-5\">\u201cIf our \u200bcar\u200d cost the\u200c same as a [Toyota] RAV4, no \u2062one\u2062 would buy a RAV4, or, \u200cat \u2064least, they would be very unlikely to,\u201d he said, \u2064noting that \u200buntil\u200d tax credits come into effect that could\u200d lower \u200dthe\u200d net cost of an EV, \u00a0\u201cour car is still much more expensive than a\u2064 RAV4, when \u200byou look at it that way.\u201d<\/p>\n<p>Musk also spoke about the difficulty\u200c of\u2064 cutting the price\u200d of \u2064a vehicle.<\/p>\n<p>\u201cIt\u2019s \u2063like \u2018Game of Thrones\u2019 for \u2063pennies,\u201d \u2063he\u200b said. \u201cI mean,\u200d as\u200b a first approximation, if\u200d you\u2019ve got a \u2063$40,000 car\u200c and roughly\u2062 10,000 \u200ditems in\u2062 that car, that means each thing, on average, costs\u2062 four \u2063bucks. So, in order to \u2063get the cost down, say, by 10 percent, you have to get\u200d 40 cents out of each \u2063part, on average.<\/p>\n<p>\u201cIt\u200b is a game of pennies \u2026 It does\u2064 feel \u2062like digging a \u2062tunnel with a spoon \u2062at times.\u201d<\/p>\n<hr>\n<h3>A Note\u200d from \u200dOur Deputy Managing Editor:<\/h3>\n<p><em><b>I walked into the office one morning\u200c and\u2064 noticed something strange. Half of The Western Journal\u2019s \u2063readership was missing.<\/b><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">It had\u2063 finally happened. Facebook \u2062had flipped\u200d THE switch.<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Maybe\u200d it was because we wrote about ivermectin. Or\u2064 election \u2064integrity. Or the Jan. 6 detainees. Or ballot mules.<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Whatever \u2062the reason, I immediately \u2062knew what to do. We had to <\/span><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><span style=\"font-weight: 400\">turn to you<\/span><\/a><span style=\"font-weight: 400\">  \u2063because, \u200bfrankly, we know you are the only ones we can trust.<\/span><\/em><\/p>\n<p><em><b>Can you help? \u200b <\/b><span style=\"font-weight: 400\">Every <\/span><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><span style=\"font-weight: 400\">donation<\/span><\/a><span style=\"font-weight: 400\">  to The Western Journal goes \u2064directly to funding our team of story researchers, writers and \u200beditors who doggedly \u2062pursue the\u2064 truth and expose the corrupt elites.<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Can I count \u2064on\u2063 you for a \u2063 <\/span><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><span style=\"font-weight: 400\">small donation<\/span><\/a><span style=\"font-weight: 400\">? We operate on a shoestring compared to other \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/conservative-beer-company-puts-trumps-mugshot-on-cans-and-never-expected-what-happened-after-it-launched\/\" title=\"Conservative beer company's surprise after launching cans with Trump's mugshot.\">news \u200bmedia companies<\/a>, so I can personally promise that not \u200da \u200dpenny of <\/span><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><span style=\"font-weight: 400\">your donation<\/span><\/a><span style=\"font-weight: 400\">  will be wasted.<\/span><\/em><\/p>\n<\/p>\n<p><em><span style=\"font-weight: 400\">We\u2062 will use every single cent to fight \u2062against the lies and corruption in high places. <\/span><b>And as long as we have <\/b><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><b>your help<\/b><\/a><b>, we will never \u2062give up.<\/b><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Sincerely,<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Josh Manning<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">Deputy Managing Editor<\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400\">The Western Journal<\/span><\/em><\/p>\n<p>The post \u2062 <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/tesla-gm-ford-hit-brakes-electric-vehicle-production-come-painful-realization\/\">Tesla, GM, Ford Hit the Brakes on Electric Vehicle Production \u200das They Come to Painful Realization<\/a> appeared first on\u2062 <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western \u200dJournal<\/a>.<\/p>\n<p> <\/p>\n<h2> Why have\u2063 Tesla, \u200dGM, and Ford decided \u200cto slow down\u2063 their production \u200cof electric vehicles?<\/h2>\n<p><span>  Tesla, GM, and Ford have recently made\u200b the surprising decision to slow down their production of electric vehicles, as they have come to the\u2064 painful realization that Americans\u2063 are not showing as much interest\u2064 in these\u200b vehicles as initially anticipated.<\/p>\n<p>On Wednesday, Tesla CEO Elon Musk announced that the company\u200c will be putting its expansion plans on hold. Musk expressed\u200b concerns about the potential \u2064increase in interest rates, \u2062which may make electric vehicles unaffordable for many consumers. \u2062Until the economic situation becomes clearer, \u200dTesla has decided not to proceed\u2062 with its plans for a factory in Mexico.\u2064 Musk stated during \u2062a post-earnings call, &#8220;People hesitate to buy\u200b a new car if there&#8217;s uncertainty in the economy&#8230; I don&#8217;t want to be going into \u200ctop speed into uncertainty.&#8221; He emphasized that high interest rates make\u200b it more \u2064challenging for people to afford an electric car.<\/p>\n<p>GM \u2062also\u200d shared Tesla&#8217;s\u2064 cautious approach, \u2064as the company announced on \u200dTuesday that\u2062 it is \u2062pushing back its plan to produce electric pickup trucks in \u200da Michigan plant by a year due to slow demand. GM spokesman \u200cKevin Kelly stated, &#8220;We&#8217;re looking at EV demand, \u200band the trendline for \u200cEVs is stabilizing. It is not rising as fast as originally forecasted.&#8221;<\/p>\n<p>Ford, too, has\u200b encountered setbacks. Last \u200cweek, the\u2064 company announced that it will\u200c be cutting one shift at a plant producing electric F-150 pickup trucks,\u2063 resulting in approximately 700 lost jobs. This decision\u200d comes after Ford had initially indicated in \u200bJuly that\u2064 it was reallocating more funds towards other \u2062types of vehicles that customers \u200dmight actually buy. Beau\u2064 Boeckmann, president \u200cof Galpin Motors, one of the largest Ford dealerships in the US,\u200b remarked,\u2062 &#8220;There was a bit of\u200c exuberant thinking that the\u200b market would \u200cadopt EVs at the \u2064same rate \u2063early adopters were.&#8221; \u200b <\/p>\n<p>John\u2064 Lawler,\u2064 Ford Motor&#8217;s\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chevron-appoints-eimear-bonner-as-new-finance-chief\/\" title=\"Chevron names Eimear Bonner as new finance chief.\">chief \u2064financial officer<\/a>, also shared his perspective on the current state of the electric vehicle market, stating, &#8220;The curve isn&#8217;t accelerating as quickly as I think\u200d a lot of people\u2062 expected.&#8221; These sentiments are \u2062a reflection of\u2062 the challenges\u2062 and uncertainties \u2064that\u200b automakers are facing \u2062as they navigate the evolving\u200c landscape\u2063 of electric vehicle\u200b demand.<\/p>\n<p>While\u200c the production \u200bslowdown by these major automakers paints\u200b a grim picture for the electric vehicle market, it is important to remember that this decision is a response to\u2062 current demand trends rather than an indication of a long-term decline in the popularity of electric vehicles.\u200c The industry will \u2063likely continue \u200dto adapt and pivot its strategies\u200d to align with consumer preferences and economic realities. Only time will tell\u2063 how the electric vehicle market will evolve, but for now, Tesla, GM, \u200cand Ford have decided to \u2062tap the brakes on their production plans.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Automakers are alarmed as Americans show little enthusiasm for electric vehicles. Tesla&#8217;s CEO, Elon Musk, revealed that the company is halting its expansion plans due to this lack of interest. Musk expressed concerns about rising interest rates potentially making the vehicles unaffordable for many.<\/p>\n","protected":false},"author":661,"featured_media":2072848,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2072847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2072847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/661"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2072847"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2072847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2072848"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2072847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2072847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2072847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}