Morning Brew - ☕ Electric slide

Incentivizing drivers into EVs.
June 26, 2024

Tech Brew

Trainwell

It’s Wednesday. Ensuring internal-combustion engines go the way of the dodo is just one part of managing the climate crisis, but the process of getting drivers to go electric has been a bit rocky. Tech Brew’s Jordyn Grzelewski has a detailed look at what it’ll take to push consumers behind the wheels of EVs.

In today’s edition:

Jordyn Grzelewski, Kelcee Griffis, Annie Saunders

FUTURE OF TRAVEL

Time to plug in

An EV charger plugged into charging port on a car with 60% charge displaying to the right of it Amelia Kinsinger

Millions more American drivers need to trade the pump for the plug for the US to play its part in curbing the climate crisis.

The problem? Many consumers have major concerns about how to do so safely, efficiently, and affordably.

Surveys and studies aplenty suggest that the recent lull in EV demand is partly due to car buyers’ hesitancy around all things batteries and charging. Take a recent J.D. Power survey: For the first time since 2021, consumers said they were less likely to consider an EV than they were the previous year—and the top five reasons were “mostly related to charging.”

An S&P Global Mobility analysis pointed the finger at range and charging concerns to help explain the recent surge in hybrid sales. And the US is lagging behind Europe and China in part because it hasn’t been expanding its fast-charging network as quickly, per JATO Dynamics.

Despite all that, EV sales are still growing; they were up more than 50% YoY last year. But the picture hasn’t been rosy for the EV sector lately: Market leader Tesla is facing some of its biggest challenges in years. EV startups are struggling. Legacy automakers are pumping the brakes on electrification. And slowing demand is one of the main culprits.

Industry stakeholders know that establishing reliable charging infrastructure is a key piece of this puzzle, and the US is in the midst of a major wave of investment that aims to do exactly that.

Consumers are less anxious about battery range than they used to be—but in order for adoption to speed up, they need to know where and how to charge, and they need to have a pleasant experience, K.C. Boyce, Escalent’s VP of automotive and mobility and energy, told Tech Brew.

“If they know that there’s a place to charge,” he said, “they’re more willing to make that leap.”

Keep reading here.—JG

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FUTURE OF TRAVEL

Trade war

Vehicles at a port. Str/Getty Images

Chinese EVs priced as low as $10,000 might spark envy for Americans shelling out, on average, more than $50,000 for a plug-in car—and now it’s even less likely that these lower-priced models will make their way to the US.

That’s if new tariffs announced last month by the Biden administration do their job. And, amping up the geopolitical drama, the European Commission recently followed the US in hiking up its own tariffs on Chinese EVs.

Chinese EV makers don’t currently have much of a foothold in the US market. But manufacturers like BYD and NIO have established themselves as dominant forces thanks to the innovative products they’re selling at incredibly affordable prices, aided by state subsidies.

These companies have started to compete in Europe and are investing heavily in Mexico, prompting concerns among US automakers that low-priced Chinese EVs could one day flood the market—potentially undercutting both domestic models and the Biden administration’s agenda.

Keep reading here.—JG

   

CONNECTIVITY

Internet uncertainty

Sens. Cruz and Cantwell in 2023. Tom Williams/Getty Images

Another legislative attempt at reviving the Affordable Connectivity Program appears to be fizzling.

Sen. Maria Cantwell recently announced that a disagreement with Sen. Ted Cruz has left her Spectrum and National Security Act, which could have infused the program with more cash, floundering.

“I hope my colleagues will stop with obstructing and get back to negotiating on the important legislation that will deliver these national security priorities, and help Americans continue to have access to something as essential as affordable broadband,” she said in a June 18 Senate floor speech.

Cantwell, a Washington State Democrat, introduced the bill in late April, as the ACP was running on fumes. It would’ve renewed the Federal Communications Commission’s authority to auction off valuable swaths of the airwaves, and in turn, dedicated some of those proceeds to tech development and access programs like the ACP. At its height, the pandemic-era program connected 23 million Americans with discounted internet service.

Cantwell noted in her floor speech that the Secretary of Defense, the Joint Chiefs of Staff, and the Secretary of Commerce publicly expressed support for the bill. That wasn’t enough to push the legislation forward, however, after a markup session was postponed for a fourth time.

Cantwell blamed Cruz (R-TX), the Senate Commerce Committee’s ranking member who has his own spectrum auction bill, for obstructing her legislation even after the committee reached bipartisan compromises on its language.

Keep reading here.—KG

   

TOGETHER WITH AT&T IN-CAR WI-FI

AT&T In-car Wi-Fi

You’re gonna wanna stay connected. Before cruising out to your favorite summer spot, you gotta hook up your car with some web access—and AT&T In-car Wi-Fi can help. Scratching your chin? We teamed up with AT&T to spill the deets on why you need to connect your car. Get the scoop.

BITS AND BYTES

Stat: 4.7%. That’s how much the US energy load is expected to grow over the next five years, Energy News Network reported in a story about how energy-sucking data centers impact the reliability of the grid, citing Federal Energy Regulatory Commission data.

Quote: “My sense is not that people are wary…They’re just unclear as to its potential use for them.”—Ralph Schulz, chief executive of the Nashville Area Chamber of Commerce, to the New York Times in a story about how small businesses are using AI (or not).

Read: A generation of AI guinea pigs (The Atlantic)

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