Momentum Behind EVs Over Hybrids

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Transcript

00:00I think hybrids are a bridge product, for sure, for people that are afraid of range anxiety.

00:05But now we've got not only cars that go 300 to 500 miles on a charge and can charge in 10 to 20 minutes,

00:13but we've got now a really growing charging network.

00:16And so I think that starts to really put the impetus and momentum behind battery electric vehicles versus hybrids over the next few years.

00:29But hybrids have been an important bridge product, and I think they're going to continue to be.

00:34But I think in less and less as we look out as the charging network and the capabilities of these cars increases.

00:41There's a lot of focus on buying brand new EVs, but there is a thriving market of secondhand EVs as well.

00:48Tell us a little bit about what that shows about the shift in consumer taste towards vehicles that are more than just the ICE engines.

00:57Yeah, I think that's a great point, Scarlett, because the used market has been largely flying under the radar,

01:05and it's a huge market for Carvana, CarMax, and the used market in general.

01:12And the used market also had a $4,000 credit available from the federal government that went away this week.

01:21So it'll be interesting to see what happens to both used car volume and used car pricing on the EV side.

01:26But to your point, it shows that if one in four new car customers are choosing an electrified powertrain,

01:33it's been close to that in the used market.

01:37And so we really do have consumers that I think are looking for that product, subsidy or not.

01:43And going forward, it's going to be interesting to watch the used side too.

01:46Yeah, I mean, there are people who definitely want to buy an EV, but the cost right now is prohibitive.

01:51And there's all these reports.

01:53Anytime you leave the U.S., you go to another country, you see how many EVs are on the road,

01:58many of which are brands that we've never seen because they're Chinese-made.

02:02Do you see a day, John, in the next five years where we're going to get Chinese-made EVs on U.S. roads?

02:08I think it's going to be a challenge because the Chinese EV makers are so heavily subsidized in a number of different ways.

02:20Low to no-cost factories, subsidized labor, subsidized materials, subsidized financing for the consumers and subsidies.

02:29And the Chinese have really been aggressive with EV policy.

02:34In the major cities of China, you can't get a license plate unless you buy an EV.

02:39So you could buy a gas car, but you enter a lottery with a 10-year wait for a license plate.

02:45So it forced the market right over to EVs.

02:48I think to compete with that kind of aggressive policy, we're going to need a whole lot of trade negotiations and agreements

02:57before we see those subsidized Chinese EVs on our roads.

03:02And then not to mention the national security issue of these cars now being fully automated, censored, and camera-ed

03:08and how the U.S. government might feel about those cars being on our roads.