Directly Current Episode 17: The EV Transition is Messy, But Inevitable ft. Mike Colias (Author, WSJ)
Mike Colias has spent years reporting on the auto industry’s strained efforts to shift to electric vehicles. The move is effectively mandated by governments worldwide, and has recently been an issue of political division stateside. Nonetheless, longtime rivals Ford and GM have both thrown much of their institutional weight behind building next-generation vehicles powered by software and batteries, not V8s and guzzoline.
The EV transition effort has had surges, like the early Biden administration’s strict policy and incentives in the early 2020s coupled with low interest rates for public companies and a never-ending investor appetite for EV startups. But, it ran into a brick wall in 2023 when consumer demand let off the accelerator pedal and financial reality kicked in. Most companies not named Tesla or bearing the Chinese flag aren’t profitable, and combustion will be with us for decades to come.
With that all in mind, how is the EV transition inevitable? As Mike concedes, the “Messy” in the subtitle does a lot of work. While there will be continual speed bumps, the direction of governments worldwide is clear. China’s dominance in EVs is relevant for every market, including ours, and if American companies can’t keep up we may all be driving cheap, but high-quality BYD vehicles. The future of the auto industry is no small thing, and it’s been a headache for European giants like Volkswagen too.
Please enjoy Max and Mike’s conversation over some of the book’s content, but to get the full story, you owe it to yourself to get a copy of his book for yourself!