California's Electric Vehicle Goals Challenged by Ford's $120,000 Loss Per Unit

California's Zero-Emission Vehicle Mandate

The state of California, under the directive of Governor Gavin Newsom, has mandated that all new passenger cars, trucks, and SUVs sold within the state must be zero-emission vehicles by 2035. This mandate was imposed by the California Air Resources Board. However, recent financial reports from Ford suggest that this goal may be unattainable.

Ford's Financial Losses on Electric Vehicles

On April 24, Ford reported a loss of $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. This represents a 20 percent decrease in sales from the first quarter of the previous year and has had a negative impact on the company's overall earnings. The losses include the hundreds of millions spent on research and development for the next generation of electric vehicles (EVs). It's important to note that Ford is the only major car manufacturer to separate its EV numbers. However, it's likely that other brands are experiencing similar losses.

The Financial Implications for California

In 2023, Californians purchased 1.78 million new vehicles. If each of these vehicles incurred a loss of $132,000, the total loss would amount to $235 billion. This could potentially bankrupt every car manufacturer, leading to a withdrawal from the California market. The government would then have to establish state-owned companies to produce the vehicles, a model reminiscent of the infamous Yugo car produced by the communist Yugoslav government in the 1980s.

Challenges with Electric Vehicle Batteries

On the same day that Ford reported its losses, The Epoch Times reported that Ford was recalling over 55,000 SUVs and trucks in Canada due to battery issues. The notice from Transport Canada indicated that a sudden loss of power or a vehicle failing to restart after a start-stop event could increase the risk of a crash. Furthermore, the effect of cold weather on car batteries could render electric vehicles almost useless in certain areas.

The Future of Affordable Electric Cars

While Tesla is reportedly working on cheaper models, it recently scrapped plans for a low-cost car due to fierce competition in the Chinese EV market. Meanwhile, the Biden administration announced in February that it would investigate Chinese "smart" cars for potentially unfair practices. Despite these challenges, Tesla's stock surged as the company announced plans to accelerate the launch of cheaper cars.

The Carbon Dioxide Debate

Recent studies have suggested that the carbon monoxide emitted by gas and diesel engines does not directly cause an increase in global temperature. These findings challenge the widely held belief that CO2 emissions are a primary driver of climate change. Despite this, the CO2 emissions from California vehicles are negligible compared to the emissions from coal plants in China.

Conclusion: The Reality of Electric Vehicle Mandates

California's mandate for 100 percent zero-emission vehicles by 2035 appears to be more of a dream than a reality. The mandate, championed by politicians and financed by billionaire environmentalists, lacks a solid foundation in reality. It's likely that a coalition will form in the coming years to push these mandates further into the future. As the politicians who championed these mandates leave office, their green battery dreams may fade away like the exhaust from a classic car.

What are your thoughts on this matter? Do you think the goals set by California are achievable, or are they just a pipe dream? Share this article with your friends and let us know what you think. And don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.