# Article in The Hill called The American Conundrum With Electric Cars

- Link: https://greenlivingguy.com/2022/02/article-the-hill-the-american-conundrum-with-electric-cars/
- Published: 2022-02-28T12:53:02-05:00
- Author: greenlivingguy

Well folks, I got an article in The Hill. Here’s how it started:

As the transportation sector continues to be the [primary source of greenhouse gas emissions ](https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#transportation)
fueling climate change, U.S. President Joe Biden has pledged that by 2030 half of
all new vehicles sold in the country would be electric.

But, with a shortage of semiconductor chips, lack of charging stations, and lack
of actual coordination with demand, is that even possible?

Semiconductor chips are imperative when it comes to vehicle manufacturing because
they power a variety of features like emergency braking, entertainment systems, 
backup cameras, and so forth. We also use these microchips in electronics and medical
equipment, which is part of the reason for the shortage.

According to experts, supply chain restrictions due to the COVID-19 pandemic and
other factors like tariffs in 2018 contribute to the scarcity of microchips. Since
early 2021 it’s been a severe struggle for many car manufacturers to maintain production,
especially electric vehicles (EVs).

[Automotive News](https://www.autonews.com/manufacturing/microchip-crisis-takes-big-toll-detroit-3)
published a report from AutoForecast stating that Ford has removed more than 324,000
vehicles from production due to the microchip shortage. In comparison, General Motors
has removed more than 277,000 and Stellantis more than 252,000 vehicles.

Sam Abuelsamid, an analyst at the market research firm Guidehouse Insights, told
Scientific American that “If we’ve got an ongoing chip shortage for an extended 
period of time, that means those [electric] vehicles can’t get built, and they can’t
get sold, and we continue to have older vehicles staying on the road longer, so 
that’s definitely a problem.”

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## **Tesla not impacted by microchip shortage **

While many car manufacturers struggle to produce, Tesla continues to grow. Thus 
far, Tesla has made and delivered more vehicles this year than it did in all of 
2020. In the [third quarter of 2021](https://ir.tesla.com/press-release/tesla-q3-2020-vehicle-production-deliveries),
Tesla delivered 73 percent more vehicles than it did in 2020’s [third quarter](https://ir.tesla.com/press-release/tesla-q3-2020-vehicle-production-deliveries).

But how? Experts say there are multiple reasons, and supply chain and location are
two important factors for all vehicle manufacturers. Currently, Tesla manufactures
in just two facilities — one in California and the other in China.

Analyst [Dan Ives told Barron’s](https://www.barrons.com/articles/tesla-stock-chip-shortage-51633353718)
that because Tesla has a simpler supply chain in addition to one being in China,
it is easier for them to source microchips. That’s because the shortage is not impacting
Chinese EV manufacturers as gravely as it did earlier in the year.

In all, Tesla is approaching the shortage situation differently. In a [company conference call](https://www.barrons.com/articles/elon-musk-tesla-all-hands-meeting-51630671015?mod=article_inline),
Tesla’s CEO, Elon Musk, said they use more modern microchip technology than other
manufacturers and are also rewriting software codes.

“It was an incredibly intense effort of finding new chips, writing new firmware,
integrating with the vehicle, and testing in order to maintain production,” said
Musk.

## The electric vehicle demand

[According to Tesla](https://greenlivingguy.com/2020/02/tesla-not-only-an-ev-manufacturer-a-full-scale-clean-energy-innovator/),
there is no shortage in EV demand. Hertz, the rental car company, is working with
Tesla to order 100,000 of its vehicles by the end of 2022. The order increased Tesla
Inc.’s (TSLA.O) market value to more than $1 trillion.

While Tesla is booming, it cannot transition the entire U.S. from gas-powered vehicles
to [electric](https://greenlivingguy.com/2024/07/carvana-gone-ev-friendly/) vehicles
alone. Although Tesla is not exactly a luxury car brand, their vehicle prices are
higher than other competing EVs and therefore not as affordable to many Americans.

However, Tesla’s expansion into the [car rental industry](https://greenlivingguy.com/2007/03/electric-cars-and-hollywood-stars-automotive-industry-education-foundation-joins-the-party-as-the-all-electric-phoenix-sut-is-unveiled/)
is a great opportunity to get more people driving EVs and reduce emissions. But,
without other EV manufacturers producing at full capacity, Biden’s EV plan may be
difficult to fulfill. There is still no knowing when the microchip shortage will
end and according to [Global EV outlook](https://www.iea.org/reports/global-ev-outlook-2020),
in 2020 EVs only represented 2 percent of new car sales.

## **Lack of charging infrastructure hinders the future of EVs**

A shortage of semiconductor chips isn’t the only thing impeding the EV industry’s
transition. While there are more than 100,000 public charging stations across the
U.S., it is not enough.

A lot needs to happen in order to meet President Biden’s EV plan and that includes
charging stations. Many EV owners charge their vehicles at home or at work. However,
it’s imperative for EV charging to be accessible, convenient, and affordable. Motorists
don’t want anything less, they want to be able to travel long distances comfortably.

Currently, EV charging stations are not evenly distributed throughout the country.
[According to Reuters](https://graphics.reuters.com/USA-INFRASTRUCTURE/EVCHARGING/zjvqkkowqvx/index.html),
California is the state with the largest amount of charging stations. Just about
the same amount as the 39 states with the least amount of charging stations combined.

Biden’s goal to advance EV [charging infrastructure](https://greenlivingguy.com/2020/04/electrifying-hd-trucks-for-long-haul-freight/)
includes a combination of grant money and incentives. The goal is to turn $7.5 billion
into a national network of 500,000 charging stations by 2030. The administration
originally promised a $15 billion investment.

## So, what is needed to achieve that?

Building this new EV infrastructure is not as easy as building new gas stations.
It will require substantial government support and a network of partnerships with
local municipalities, businesses, utility companies, etc.

[AlixPartners told CNBC](https://www.cnbc.com/2021/03/31/us-ev-charging-system-a-priority-under-bidens-2-trillion-infrastructure-plan.html)
the U.S. would need to invest $50 billion in charging infrastructure to meet the
expected EV growth by 2030 and $300 billion globally. EV chargers that charge in
as little as 10 minutes is not cheap. According to AlixPartners, those are considered
level three chargers and cost between $120,000 and $260,000 to install.

Currently, the majority of chargers in the U.S. are level 2. They cost between $
2,000 and $5,000 and can take up to five hours to fully charge an EV with a 240-
V outlet. Level 1 chargers only use a 110-V outlet like house plugs. Therefore, 
they take a very long time to charge an EV. Therefore, those are more suitable for
some residential buildings. Without the proper coordination and a realistic approach,
the transition to an [electric transport infrastructure](https://greenlivingguy.com/2010/11/north-carolinas-raleigh-areas-gonna-get-some-electric-car-infrastructure-education-and-preparedness-time/)
may be more difficult to achieve.

## Matching electric infrastructure

According to a recent study, California is the state with the greatest number of
EVs. However, it doesn’t even have 40 percent of the charging infrastructure necessary
to support the 2050 goal.

[Analysts](https://apnews.com/article/technology-lifestyle-joe-biden-climate-change-climate-89a7fcef90c2185a91ab1e14c24b7d7d)
say that Biden’s $7.5 billion plan is a good start, but not nearly enough for nationwide
adoption of EVs. However, that shouldn’t shy vehicle manufacturers away from competing
in the EV future.

EV manufacturers like Tesla, Volkswagen, and Rivian are taking the industry by storm.
Therefore, other manufacturers will need to find a way to increase their production
fast. [The Detroit Free Press cites](https://www.freep.com/restricted/?return=https%3A%2F%2Fwww.freep.com%2Fstory%2Fmoney%2Fcars%2Fford%2F2021%2F11%2F04%2Fford-ceo-jim-farley-tesla-electric-vehicles-rivian-vw%2F6250863001%2F)
that Ford CEO Jim Farley explained to a group of employees the importance of taking
their competition seriously.

“We need to be honest with ourselves about the market, the strength of our competition,
and the work we need to do together,” he said. “The market is evolving rapidly towards
[electric](https://greenlivingguy.com/2022/03/merchants-orders-fully-electric-step-vans-from-xos-inc/).
While we’re making progress, and we are, we have a lot of work to do. But our competitors
are unbelievable in this space, something we have never seen.”

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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
expert, and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author,
Radio Host, Reporter, Writer and an Environmental Consultant on green living. The
Green Living Guy writes about green living, green lighting, the green guru guides
and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant
and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric
Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green
Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For 
Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke #
Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power
System by Brian Clark Howard and Kevin Shea # and more green living books to follow.

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