Click here: The Weekly Beacon – January 6 2023
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Electric Vehicle Prices, Rare Earth Metals, Tesla Stock, Stock Picking EVs, EV Sales, Tesla Sales, Replacing an EV Battery, Lithium Battery Demand, Real Estate Fund, U.S. Migration Patterns, Southern Growth Market, Congress, Trading in Congress, Worlds Best Hedge Funds, Sell Side Price Targets, Lofty Targets, Selling Investors Crap, FED, FOMC, FED Minutes, Interest Rate Hikes, LNG Exports, U.S. Milestone.
Electric Vehicle Costs Surging
It’s no secret that input costs have risen for electric vehicles. It is a major reason prices have rapidly increased for Electric vehicles (EVs) over the last 1.5 – 3 years. This trend will continue, and it will become even more expensive for consumers to buy EVs. EVs are already more expensive than traditional automobiles and they will arguably become even more expensive for years to come. If you are a long-time reader of The Weekly Beacon, we are sure you understand why prices are surging. Rare Earth metals which are used to manufacture EVs have a fixed supply. EVs also use more of these metals than traditional automobiles due to the fundamental construction of an EV.
Even though lawmakers and environmental extremists want us to switch to EVs and claim we will save money at the pump, it is not economical for most consumers to do so. The upfront costs will simply deter most of the population from buying an EV, especially during tough economic conditions. People would rather buy a used car for $12,000 or a new car for $30,000-40,000 than buy a brand-new EV for $50,000+.
EVs seem to always be expensive. The cost to replace an EV battery is exponentially higher than a traditional automobile. One Toronto family was quoted $23,000 to replace their electric model Kia’s battery. Now that is probably on the high end of replacement costs – EV batteries usually cost $10,000-20,000 (CAD) to replace. The cost varies by model. In comparison, the average cost of a replacement battery for gas-powered vehicles is about $350 – RepairPal estimates.
