American Auto CEO Praises China’s EV Market

Posted Dec 10, 2024
by Martin Armstrong

CEO of Lucid Motors and a former VP of engineering at Tesla Peter Rawlinson says his company is stuck in the EV “valley of death” as EVs in America “frankly suck.” Rawlinson admitted that China has an advantage in technology, but more over, they have the ability to produce affordable EVs.

“I think the Chinese do have a fundamental advantage because when the government says go, they all go in the same direction instead of arguing with each other,” Rawlinson said. China has provided over $230 billion to its newly emerging EV sector since 2009. “I’d say they’re still behind in terms of the core EV powertrain technology, but don’t underestimate them,” Rawlinson added.

The CEO also said that he personally drives the competitors cars and believes the “American public has been ill-served by underwhelming EVs.” His company is on track to produce a new electric SUV called Gravity that will retail for $94,900. Quality EVs are available in America but they come at a steep price which is why they have not become mainstream.

He is not alone in his thinking among industry leaders. Stellantis CEO Carlos Tavares previously believed China’s EVs would have a similar reception to the US public that Japanese autos did back in the 1970s. That was

Batteries account for around 40% of the total cost of EVs, and companies like BYD are able to maintain low prices are they own the supply chain to create these batteries from the raw materials to the finished packs.

The West is unaware how affordable Chinese EVs actually are without tariffs. The BYD Seagull EV Honor Edition starts at about $9,700. The BYD Dolphin EV Honor costs only $13,900 and the BYD Yuan electric SUV is $16,600. You cannot find used cars for these prices in the US, let alone an EV.

If those pushing to eliminate fossil fuels were truly concerned about emissions, they would permit China to import these EVs to Europe, Canada, and America without astronomical tariffs. Capital makes the world flow. They are deliberately preventing the Western public from purchasing affordable, good quality vehicles. Instead, they expect the average man to take on tens of thousands in debt to buy a lower quality car to save on fuel.

Article Link: https://www.armstrongeconomics.com/world-news/world-trade/american-auto-ceo-praises-chinas-ev-market/