10 bearish facts about electric vehicles

The experts at powerthefuture.com reveal a vulnerable underbelly to what is otherwise a dominant megatrend.

1. EVs are powered by fossil fuels.

In the United States, fossil fuels such as coal, oil and natural gas account for approximately 60% of the country's electrical grid. While nuclear power only accounts for the remaining 20%, according to the US Energy Information Agency.

2. The batteries of EVs rely on cobalt.

"An estimated 70% of the global supply of cobalt emanates from the Democratic Republic of the Congo, a country with deplorable working conditions, especially for children," the report said.

Separately, S&P Market Intelligence notes that EV makers have been reducing the amount of cobalt in their products in an "effort to cut costs and avoid the stigma of buying a product fraught with troubling labour practices ... But cobalt demand will soar anyway.

3. A third of San Francisco's electric charging stations don't even work

A study showed that over 27% of EV charging stations in the San Francisco Bay area are non-functioning.

4. California admits the increase in electricity demand due to EVs will strain the grid

A study by ICF flags that EV adoption could see a 40% increase in demand for electricity, straining the power grid and require additional funding for power-related infrastructure.

5. Buying an EV is similar to adding "1 or 2 air conditioners" to your home

"According to one researcher, the strain of adding an EV is similar to adding “1 or 2 air conditioners” to your home, except an EV requires power year-round," powerthefuture researchers said.

6. "Today, 20 million American families, or one in six, have fallen behind on their electric bills, the highest amount ever."

The National Energy Assistance Directors Association flags this as the worst crisis it has ever experienced, according to Bloomberg.

"Underpinning those numbers is a blistering surge in electricity prices, propelled by the soaring cost of natural gas," the article said.

"The power bill crisis is even more acute in Europe, where the spike in natural gas prices has been far greater in the wake of Russia’s invasion of Ukraine."

7. Who will shoulder the additional costs

"Utility companies will need to add $5,800 in upgrades for every new EV for the next eight years in order to compensate for the demand for power. All customers will shoulder this cost," said powerthefuture.

8. EV prices are up 13% year-on-year

"The average price for an electric vehicle is currently $66,000, up more than 13% in just the last year, costing an average of $18,000 more than the average combustible engine," according to the report.

"Meanwhile, the median household income is $67,521. For African American families, the average is $45,870, and for Hispanic households, $55,321."

9. Difficult to charge if you live in an apartment, unit or townhouse

The report notes that a "2022 study found that the majority of EV charging occurs at home, leaving those who live in multi-family dwellings (apartments) at a real disadvantage for charging."

10. Charging at night is a little counterintuitive

"The same study also noted that many drivers charge their EVs overnight when solar power is less available on the grid."