Rising Gas Prices Reveal A Problem For The EV Industry
High gas prices are causing a rise in EV orders, revealing an industry that is not ready to meet global demands. The switch to green vehicles has always been a road filled with obstacles. In its early days, the fossil fuel industry blocked and pressured the green EV movement to prevent it from taking flight.
Today, most big car brands have not only embraced the all-electric mobility trend but have also released EV lineups and models to conquer the market. However, new obstacles have emerged such as inflation, the ability to scale up, supply chain problems, chip shortages, and difficulty sourcing elements for lithium batteries. Despite this, car brands are racing to ramp up their EV production.
Related: Aston Martin Creating Its Own Batteries For EVs To Better Fit The Brand
In a recent Tweet, Elon Musk said that Tesla is focused on “scaling to extreme size” as part of its Master Plan 3. Recently, Tesla saw weekly orders increase by 100% due to high gas prices. To meet the demand and increase in costs, Tesla raised prices for the second time in one month. Tesla is now rushing to accelerate production and recently inaugurated its Gigafactory in Berlin. As reported by CNBC, the new Tesla Gigafactory is expected to roughly double its production. Tesla now has four operating plants, with the Gigafactory slated to open this year. Other brands like Volkswagen will invest more than $100 billion to scale EV production. VW also announced a new plant in the U.S. with $7.1 billion in investment. Both are racing to become the biggest EV production companies.
However, there is the question of how will EV makers cope with global demands if a 100% increase in weekly Tesla orders triggered a bottleneck, delays, and caused the price of EVs
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