EV sales are expected to make it through the global pandemic. With so many businesses and large industries shutting their doors, how do we factor in the progressive future of electric vehicles?
Collapse Of Oil
The supply and demand for one of the world’s most widely used resource, oil, has been nosediving. So much so that on Monday, the average cost for oil was approximately-$37. Prior to the pandemic, both Saudi Arabia and Russia went into an arms race and decided to relax on the limits of production. Supply was great and the price was expected to drop. When the global pandemic hit, the demand for oil drastically fell. So much so that big oil companies are having a hard time giving it away and storing it. This has drastically affected the industry to the point of headlines now saying it is facing “collapse”.
Auto Makers Desperate to Retain Buyers
The traditional auto industry has made drastic steps in order to maintain sales. Offering steep incentives and cutting prices dramatically, the once largest market for consumers now loses millions of potential sales a day. The number continues to unfortunately grow.
Companies like GM are offering 0% interest rates across its entire line of cars. Typically incentives remove unwanted products. Unfortunately, since sales are dropping by the millions, this 0% interest rate has now included brand new vehicles. The used car industry has seen a slight uptick in sales now that many people are receiving their stimulus checks. Some individuals are making preparations to find new jobs and careers now that their business has closed down. In order to have a job, typically one must have a job. This has been a minor uptick in sales, but nothing worthy of climbing out of a drastically increasing hole.
EV Sales Have Taken A Hit But Remain Steady
Where the worlds of both the oil industry as well as the auto industry have a pretty symbiotic relationship with each other, the electric market is free to go wherever it wants. Not only that, but it hasn’t become such a dependent power that it has room to make adjustments. Don’t be confused, they are taking a hit, just not one as drastically as world super corporations.