EVs Are Having Their "iPhone Moment" As Affordable Brand Sales Surge

Prices are coming down, sales are going up - and despite too few charging stations, the EV is becoming a mainstream vehicle. 

More than 40 new models have entered the market in the last 18 months challenging Tesla's share (which has also been hurt by Musk's increasingly erratic and extremist public statements). While some US conservatives remain opposed due to their dependence on oil industry campaign contributions, consumers are voting with their wallets. JL 

Saahil Desai reports in The Atlantic:

EVs are having an “iPhone moment. In 2023, a boom in sales and new models is starting to push us into the post-gas age. Carmakers are now tech companies. Americans are on track to buy a record 1.44 million EVs in 2023, the same number sold from 2016 to 2021 total. This was the year that these cars became untethered from Elon Musk’s brand. “EVs aren’t exclusively for the upper class. (They) became mature vehicles.” 40 new EVs have debuted since the start of 2022, and they are far more advanced. For $40,000, the Hyundai Ioniq 6, released this year, can get you 360 miles on a single charge.One day in late November, I cradled a red Samsung flip phone in my hands as if it was a ruby gemstone. To me, it was just as precious. Deep inside an overstuffed dresser in my childhood bedroom, I had spotted the glint of my first-ever cellphone, a Samsung SGH-A707 purchased in the waning days of the George W. Bush presidency. The device, no bigger than a credit card, had long ago succumbed to the spider web of cracks on its screen. For a moment, I was brought back to life before the smartphone, clicking the phone’s plastic keys for the first time in more than a decade.

This device, and every other phone like it, of course, was made obsolete by the touchscreen slabs now in all of our pockets. Perhaps you have heard that we are now on the cusp of another iPhone moment—the rise of a new technology that changes the world. No, not that one. Despite the post-ChatGPT frenzy, artificial intelligence has so far been defined more by speculative hype than actual substance. Does anyone really want “AI-powered” smoothies, sports commentary, or roller skates? Assuming the bots don’t wipe out humanity, maybe AI will take the jobs of high-school teachers, coders, lawyers, fast-food workers, customer-service agents, writers, and graphic designers—but right now, ChatGPT is telling me that Cybertruck has 11 letters. There’s a long way to go.

Meanwhile, electric cars are already upending America. In 2023, our battery-powered future became so much more real—a boom in sales and new models is finally starting to push us into the post-gas age. Americans are on track to buy a record 1.44 million of them in 2023, according to a forecast by BloombergNEF, about the same number sold from 2016 to 2021 total. “This was the year that EVs went from experiments, or technological demonstrations, and became mature vehicles,” Gil Tal, the director of the Electric Vehicle Research Center at UC Davis, told me. They are beginning to transform not just the automotive industry, but also the very meaning of a car itself.

 

If the story of American EVs has long hinged on one company—Tesla—then this was the year that these cars became untethered from Elon Musk’s brand. “We’re at a point where EVs aren’t necessarily exclusively for the upper, upper, upper class,” Robby DeGraff, an analyst at the market-research firm AutoPacific, told me. If you wanted an electric car five years ago, you could choose from among various Tesla models, the Chevy Bolt, the Nissan Leaf—and that was really it. Now EVs come in more makes and models than Baskin-Robbins ice-cream flavors. We have more luxury sedans to vie with Tesla, but also cheaper five-seaters, SUVs, Hummers, pickup terucks, and … however you might categorize the Cybertruck. Nearly 40 new EVs have debuted since the start of 2022, and they are far more advanced than their ancestors. For $40,000, the Hyundai Ioniq 6, released this year, can get you 360 miles on a single charge; in 2018, for only a slightly lower cost, a Nissan Leaf couldn’t go half that distance.

Read: Admit it, the Cybertruck is awesome

All of these EVs are genuinely great for the planet, spewing zero carbon from their tailpipes, but that’s only a small part of what makes them different. In the EV age, cars are no longer just cars. They are computers. Stripping out a gas engine, transmission, and 100-plus moving parts turns a vehicle into something more digital than analog—sort of like how typing on an iPhone keyboard is different than on my clackety old Samsung flip phone. “It’s the software that is really the heart of an EV,” DeGraff said—it runs the motors, calculates how many miles are left on a charge, optimizes the brakes, and much more.

Just like with other gadgets that bug you about software updates, all of this firmware can be updated over Wi-Fi while a car charges overnight. Rivian has updated its software to add a “Sand Mode” that can enhance its cars’ driving ability on dusty terrain. Many new cars are getting stuffed with technology—a new gas-powered Mercedes-Benz E-Class comes with TikTok integration and a selfie stick—but EVs are capable of more significant updates. A gas car is never going to meaningfully get more miles per gallon, but one such update from Tesla in 2020 increased the range on its Model X car from 328 to 351 miles after the company found ways to wring more efficiency out of its internal parts. And because EVs all drive basically the same, tech is a bigger part of the sell. Instead of idly passing the time while an EV recharges, you can now use a car’s infotainment system to Zoom into a meeting, play Grand Theft Auto, and stream Amazon Prime.

The million-plus new EVs on the road are ushering in a fundamental, maybe existential, change in how to even think about cars—no longer as machines, but as gadgets that plug in and charge like all the others in our life. The wonderful things about computers are coming to cars, and so are the terrible ones: apps that crash. Subscription hell. Cyberattacks. There are new problems to contend with too: In Tesla’s case, its “Autopilot” software has been implicated in fatal crashes. (It was the subject of a massive recall earlier this month that required an over-the-air update.) You now might scroll on your phone in bed, commute in your EV, and log into your work laptop, all of which are powered by processors that are constantly bugging you to update them.

Read: The end of manual transmission

If cars are gadgets now, then carmakers are also now tech companies. An industry that has spent a century perfecting the internal combustion engine must now manufacture lithium-ion batteries and write the code to govern them. Imagine if a dentist had to pivot from filling cavities to performing open-heart surgery, and that’s roughly what’s going on here. “The transition to EVs is completely changing everything,” Loren McDonald, an EV consultant, told me. “It’s changing the people that automotive companies have to hire and their skills. It’s changing their suppliers, their factories, how they assemble and build them. And lots of automakers are struggling with that.”

Take the batteries. To manufacture battery cells powerful enough for a car is so phenomenally expensive and arduous that Toyota is pumping nearly $14 billion into a single battery plant in North Carolina. To create software-enabled cars, you need software engineers, and car companies cannot get enough of them. (Perhaps no other industry has benefited the most from Silicon Valley’s year of layoffs.) At the very low end, estimates Sam Abuelsamid, a transportation analyst at Guidehouse Insights, upwards of 10,000 “software engineers, interface designers, networking engineers, data center experts and silicon engineers have been hired by automakers and suppliers in recent years.” The tech wars can sometimes verge on farce: One former Apple executive runs Ford’s customer-software team, while another runs GM’s.

At every level, the auto industry is facing the type of headache-inducing questions about job losses and employment that still feels many years away with AI. “There’s a new skill set we’re going to need, and I don’t think I can teach everyone—it will take too much time,” Ford’s CEO, Jim Farley, said in May. “So there is going to be disruption in this transition.” Job cuts are already happening, and more may come—even after the massive autoworker strike this year that largely hinged on electrification. Such a big financial investment is needed to electrify the car industry that from July to September, Ford lost $60,000 for every EV it sold. Or peel back one more onion layer to car dealerships: Tesla, Rivian, and other EV companies are selling directly to consumers, cutting them out. EVs also require little service compared with gas vehicles, a reality that has upset many dealers, who could lose their biggest source of profit. None of this is the future. It is happening right now.

 

But if EVs are having an “iPhone moment,” we are still in the days when a few early adopters had the clunky, OG version. Most cars you see are a decade old; for all these EV sales, just 1 percent of cars on the road are all-electric. Even if we hit President Joe Biden’s EV target of 50 percent of sales by 2030, the sheer life span of cars will mean that gas vehicles will still greatly outnumber electric ones by then. Gas stations are not closing. Parking garages are not buckling under the weight of EVs and their hefty batteries. Electric cars remain too expensive, and they are limited by janky public chargers that are too slow, assuming they work at all. If you don’t have a house where you can install your own plug, EVs are still mostly just unrealistic. Most alarming might be the politics that surround them: Donald Trump and lots of other Republicans are vowing to stymie their growth. Carmakers are not even hiding that next year’s election might lead them to reconsider their EV plans.

Even so, the transition is not slowing down. Next year, America should hit 1.9 million EV sales, Corey Cantor, an EV analyst at BloombergNEF, told me. Another burst of models is coming: A retro-futuristic Volkswagen van! A Cadillac Escalade with a 55-inch touchscreen! A tiny Fiat 500e for just $30,000! And yes, they are succumbing a bit to hype themselves. In June, Mercedes’s infotainment screen got an optional update. Now you can talk to it through a chatbot.