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While electric vehicle (EV) names like Tesla and Rivian have recently announced monetary difficulties, the former Chrysler CEO and chairman has issued a warning about the long-term market.
“They’re going through a tough time. These startups will just make it,” Bob Nardelli, who led Chrysler during the Great Recession, said Tuesday on “Cavuto: Coast to Coast. “
“It’s just another problem, another debacle of this administration that seeks to create a revolution that allows evolution,” he continued. “You can’t force consumers to swallow it. “
On the same day as Nardelli’s comments, Tesla shares began to fall due to a gigantic shortfall in deliveries: the EV maker produced more than 433,000 cars in the first 3 months of the year, down 12% from last quarter, and delivered 387,000, down 20% from last quarter, the company reported. Analysts had expected the automaker to deliver more than 400,000, according to estimates.
BUYERS OF TESLA’S CHINESE RIVAL E. V. CAN ENDURE A LONG MONTH OF WAITING FOR SU7
The latest look is a headwind for shareholders as Tesla shares have fallen more than 30% year-to-date.
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Last month, Rivian announced it would lay off 10% of its workers while it made plans for solid vehicle production. The company plans to produce the same amount, about 57,000 vehicles, in 2024 as it did last year, the company said in a regulatory filing. .
President Biden’s policies pushing for a zero-emission electric vehicle market parallel regulations that Nardelli would have considered as Chrysler’s CEO during the Obama-Biden administration.
“Basically, they were saying that the average mileage of an internal combustion engine had to increase dramatically, restricting the number of Ram trucks it could produce. So we had to produce smaller cars. The customer said ‘no thanks’ and had to find a way out,” Nardelli explained.
“When I was at Chrysler, the average age [of cars] was 11 years. Now it’s 12. 6 years,” he added. Consumers still say, ‘I’ll make the decision of what I need to buy. [This] administration, but some other debacle with electric vehicles, they’re not going to force me to do that. ‘”
U. S. consumers’ interest in electric cars has waned, according to a recent survey that found that 41% of respondents said they were interested in buying or leasing an electric vehicle as their next vehicle, up from 49% a year earlier.
That same survey found that when respondents were asked to choose between the same hypothetical vehicles with the same price — a hybrid that doesn’t require charging and an electric vehicle that does — 83% chose the hybrid. The top reason cited why (66%) was the ability to use gasoline, followed by the limited diversity of electric cars (57%) and the inconvenience of charging electric cars (52%).
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FOX Business’ Daniella Genovese and Breck Dumas contributed to this report.
Source of original article: Former Chrysler CEO predicts EV startups ‘possibly wouldn’t make it’
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