The problem with government mandates aimed at manipulating free markets is they are typically based in political expediency, not commercial reality.
As more potholes appear on the road to electric-vehicle nirvana, edicts by lawmakers in Canada and states such as California and New York to require all new-car sales be EVs by 2035 are proving the point: Politically motivated virtue signals rarely withstand pressure testing from real-world market forces.
Those forces are now schooling government on the scope and timeline for broad adoption of EVs. And if they’re paying attention to what’s happening – and not happening – in the EV world, lawmakers should back off their ill-considered bulls and wake up to the reality of the marketplace, as ideologically sobering as that may be.
The downsides of swimming against the tide on this threaten the economy. While automakers ramp up EV production to meet the looming mandates, dealers are swamped with huge inventories of unsold EVs – inventories well above the national average for gas-powered or hybrid vehicles.