Car makers quietly cheer the elimination of the EV mandate

The Biden Administrations EV mandates designed to push automakers toward a greener future were a bold idea but forgot one tiny detail: markets work best when people actually want what you’re selling. Last week, when Trump rolled the mandates back, he essentially told car companies “Stop building stuff just to check a box. Build what works, make money, and let demand drive innovation.” Turns out, that advice might have been exactly what companies like Ford needed.

Ford’s EV Woes: Big Bets, Big Losses

Ford jumped into the EV game with enthusiasm (and billions of dollars). But enthusiasm doesn’t always pay the bills. In 2023, Ford’s EV division, projected a jaw-dropping $4.5 billion loss, up from $2.1 billion the year before. Why? Because EVs aren’t quite the cash cows traditional trucks and SUVs are. Here’s the breakdown:

Sticker Shock: Building EVs is expensive, largely due to pricey batteries made of materials like lithium and cobalt. Supply chain hiccups have only driven costs higher.

Slow Rollout: Sure, EV sales are growing, but they’re still a small slice of the pie. Most folks aren’t ready to ditch their trusty gas guzzlers, citing cost, range anxiety, and a lack of charging stations.

Profit Problems: EVs don’t have the juicy margins Ford gets from its best-selling F-Series trucks, which practically print money. Every EV sold today is more like a long-term bet on a future that’s still charging.

Why Ditching Mandates Might Actually Help

By cutting the EV mandates loose, automakers are no longer forced to build cars they can’t sell just to meet regulatory goals. Instead, they can focus on what works, grow EVs at a pace that makes sense, and avoid financial meltdowns.

1. Back to Basics: Ford can focus on what’s paying the bills: trucks and SUVs. The F-Series? That’s their bread and butter, not electric crossovers gathering dust on dealer lots.

2. Slow and Steady: EV tech is improving, but it’s not there yet. Without the rush, automakers can refine their designs, cut costs, and scale production when consumers are truly ready.

3. Consumer First: Nobody likes being forced into something. A market-driven approach lets automakers innovate in ways that attract buyers, instead of pumping out EVs just to hit quotas.

4. Fewer Flops: Scaling back reduces the risk of producing EVs nobody buys. It’s a smarter play for companies that want to stay in the black.

So, What’s the Big Picture?

Mandates made a lot of noise, but they didn’t fix the core problem: consumers weren’t ready, and automakers were burning cash to keep up. Letting the market decide gives companies like Ford room to breathe and make money while EV adoption happens more naturally. The result? Stronger businesses, better cars, and a green future that doesn’t bankrupt everyone along the way. Sometimes, the slow lane really is the fast track.