EV Production Costs Continue to Fall – Quickly – Will This Drive A Demand Spurt?

C-MACC Weekly Sustainability and Energy Transition Report

EV Production Costs Continue to Fall – Quickly – Will This Drive A Demand Spurt?

• 1^st Topic of the Week: Most of the recent news on EVs has been about demand slowdowns and surpluses of vehicles – especially used Teslas. Is this a dip before a surge? The EV makers have what they wanted – a surplus of components and oversupplied materials markets – so EVs could get A LOT cheaper and drive a rapid recovery.
• 2^nd Topic of the Week: Is the IEA wrong, not doing a good job of communicating, or missing an opportunity to drive both energy transition and energy security?
• Otherwise: We look at the ineffectiveness of recycling – we believe that we need a different approach to waste. We also look at the real opportunity for carbon credits again and discuss the US emergence of Woodside.

Exhibit 1: The collapse in used EV prices, shown by the trend in used Tesla values below, relative to the overall used car market, is indicative of waning interest, but as prices come down, interest levels will pick up again.

Source: CarGurus, August 2024