Biden Faces Congressional Backlash Over EV Transition, Concerns Over China Rise

Representative Mike Simpson of the United States has joined the nearly 140 other senators and representatives who have urged President Joe Biden to terminate electric vehicle transition objectives.

Congressional Critics Slam Biden's EV Policies, Cite Costs and China Concerns

In a letter to the President, Simpson stated, "The Biden administration's radical electric vehicle policies are driving up consumer costs, hurting American jobs, and emboldening China."

"This kind of heavy-handed government intervention sets a dangerous and costly precedent, and it leaves the American people footing the bill. As Chairman of the House Interior and Environment Appropriations Subcommittee, I was proud to author a bill that blocked this ridiculous mandate. I will continue to push back against this administration's rush to electrify vehicles."

Teslarati reports that by 2032, 67 percent of light-duty vehicles and 46 percent of medium-duty cars will be electric, according to the objectives of the Biden administration.

The initiative has led to a surge in electric vehicle (EV) sales and a more significant proportion of the U.S. vehicle market devoted to electric vehicles.

Representative Simpson used "radical" in his press release to describe EPA policies and objectives.

In the interim, Iowa Representative Randy Feenstra stated that President Biden's ambitions to impose stringent EPA regulations on individuals are unmistakable: "to buy electric vehicles to advance his Green New Deal agenda than allow folks to choose the best car or truck for their families, businesses, and farms at an affordable price. This misguided decision also strengthens China while weakening our economy because the critical materials needed to manufacture electric vehicles are primarily sourced from China."

"I encourage President Biden to rescind this proposed rule immediately and work with Republicans to lower costs for our families, farmers, and small businesses," Rep. Feenstra said.

Similar maneuvers have been executed in various other cases. Thirteen states initiated legal proceedings in late 2022 to halt California's prohibition on new ICE sales after 2035.

Biden's 2030 EV Sales Goal On Track as U.S. Market Share Grows

Jennifer Granholm, energy secretary, stated that the Biden administration is halfway to its target of selling electric vehicles (EVs) by 2030.

Granholm recently visited a battery manufacturing facility for electric vehicles in Moses Lake, Washington. She predicted that the level of electric vehicle (EV) adoption in the United States would be "equivalent" to that of the previous year. A U.S. record 1.2 million electric cars were sold in 2023.

By 2030, the Biden Administration intends for half of all automobile sales in the United States to consist of electric vehicles. According to Kelley Blue Book, the electric vehicle (EV) market share in the United States increased from 5.9% in 2022 to 7.6% last year.

"EVs are growing very fast. There's a lot of new models that are coming on from our domestic manufacturers that are much lower price as well," Granholm said to Yahoo Finance.

Tesla Leads Price Cuts in Growing EV Market, Inflation Reduction Act Boosts Sales

In the past year, Tesla, the leading EV manufacturer in the United States, reduced its prices by one-fifth. In contrast, prices for other electric vehicles on the US market have decreased by more than 10%. Cox Automotive's Senior Director of Business Intelligence, Mark Strand, observed that Tesla spearheaded EV pricing reductions.

Significantly, the Inflation Reduction Act (IRA) has contributed to the decline in EV prices. It began to gain the favor of automobile dealers as early as 2024. Initially, auto dealerships hesitated to sell electric vehicles (EVs) or marked up the prices, providing a competitive advantage to companies that adopted a direct sales model.

As the EV market grows, automobile manufacturers in the United States encounter novel obstacles.

"We're starting to see the early adopters who grabbed a very expensive Rivian, or Lucid for that matter, … already bought a lot of those vehicles. Now, mainstream consumers are coming in to buy EVs. They're kind of more price sensitive," said Tom Narayan, RBC Capital Markets lead equity analyst.

Photo: The White House, CC BY 3.0 US, via Wikimedia Commons