Electric Vehicle in the U.S. face a bleak year as both state and central government are pulling back in the support to be given to Electric Vehicle.
Last year 160,000 plug in vehicles were sold in the U.S. making it one the largest Electric Vehicle markets in the world. However, recent news flow is negative for the sector.
Donald Trump is neither pro-environment nor pro-green, in fact he is a big supporter of fossil fuels. He is expected to drastically water down the regulations which force tougher emissions standards on vehicle makers. He has said so in a recent meeting with top automakers from Detroit. This will reduce the number of EVs that automakers produce. On the other hand, US states are also reducing the support given to Electric Vehicle. Some states which used to give a generous grant for each EV are now in fact charging a fee on EVs.
Also read major home furnishings retailer to install EV charging station at its store.
Most states have started to be influenced by the fossil fuel lobby (read Koch brothers) who see a threat to their oil (NYSEARCA:USO) empire from the increasing penetration of EVs. Bloomberg recently said that the oil companies and countries are grossly underestimating the pickup in Electric Vehicle industry. Bloomberg thinks that 35% of the vehicles in 2040 will be Electric Vehicle. Given the recent trends in solar (NYSEARCA:TAN) energy sand energy storage cost reduction and growth, I think that 35% is also an underestimate and you could expect 100% penetration by that time.
The measure in Colorado has been backed publicly by Americans for Prosperity, an advocacy group founded by conservative billionaire brothers David H. and Charles G.Koch, whose wealth is founded on their petrochemicals empire. A handful of other states, including Illinois, Pennsylvania and Tennessee, have already let their incentives expire. That has brought down to 16 the number of states that offer financial support for buyers of electric vehicles. That number once approached 25.
U.S cities are picking up the slack left by the states and have announced a tender to purchase around 114,000 Electric Vehicles from automakers. A group of 30 U.S. cities has decided to come together to ensure that the momentum in Electric Vehicle growth does not die down in U.S.