US EV market could become the 'next big flop'
Originally published October 30, 2023
Just like Ford’s "Edsel" model in the 1950s, Trump administration economist Steve Moore cautioned that electric vehicles (EVs) may be the auto market's "next big flop."
"Henry Ford's son was named Edsel, and this was going to be the great car, all of the executives said, 'This is the car everybody's going to want to buy.' Ford made 500,000 of these new sedan cars, but guess what?" Moore said on "Varney & Co." Monday. "Nobody bothered to ask consumers whether they wanted the car."
"And of course, the Edsel was one of the great flops of all time," the economist continued. "I'm here to tell you, if these trends continue, we're going to see the EV market become the next big flop because car buyers don't want them."
Moore’s comments come as the EV push at Ford and General Motors hit a speed bump that’s cutting into the automakers’ profits and causing them to reevaluate their electric plans amid a price war and supply chain challenges.
Ford noted in its earnings report released last week that its EV unit posted a quarterly loss before interest and taxes (EBIT) of $1.33 billion – an acceleration after a loss of $1.08 billion in the prior quarter. It added that it’s cutting production of its Mustang Mach-E while scaling back about $12 billion in planned investments in the EV segment, including delaying its second battery plant in Kentucky.