An outspoken car expert has launched an epic spray at electric vehicles, accusing them of being expensive to repair and offering poor resale value.
The veteran motoring journalist John Cadogan, who runs the AutoExpert website, made the comments in typically colourful fashion in a YouTube video posted on Tuesday which is titled ‘Tesla EVs are just too expensive to own – says Hertz CEO’.
He claimed Telsas are proving twice as costly to repair as comparable combustion engine vehicles.
Cadogan also arguedthat slowing electric vehicles sales has led to showroom discounting which destroys resale value and threatens retailers’ commercial viability.
Cadogan uses the huge US rental car company Hertz as a case study for the issues besetting electric vehicles and Teslas, in particular.
The video follows a blistering attack on electric vehicles made a top Toyota executive who questioned whether they were suited to Australia.
Hertz this week announced it was slowing the introduction of 100,000 Teslas into into its fleet – with only around 35,000 operating – despite first announcing the bulk purchase in 2021.
An automotive expert says newer makes of Tesla (pictured a Model 3) are being heavily discounted as demand slows in the electric vehicle market
READ MORE: True or false? EVs are cheaper to service, maintain and repair than petrol and diesel cars
In a typically pithy and expletive-laden post, Cadogan explained why.
‘The damn things just cost too much to keep on the road and the resale value Is s***,’ he said.
Hertz Global CEO Stephen Scherr said that collision and damage repairs on a Tesla cost ‘about twice that associated with a comparable combustion engine vehicle’.
The electric vehicle market globally has been stalling with AutoForecast Solutions Vice President Sam Fiorani telling Business Insider ‘the spectacular growth we’ve seen over the last few years cannot be sustained’.
Cadogan explained this as a shortage of ‘virtue-signalling t**ts’.
‘Electric scientology-zealot customers seems to be plateauing,’ he said.
John Cadogan said that if Tesla can only compete by lowering the price of its cars, the company was ‘doomed’
‘It could signal an end to the age of bullsh***.’
In response he said Tesla CEO Elon Musk, who he called ‘electric Jesus’, has been forced to ‘start inelegantly slashing prices to keep customers coming through its front door’.
He said this was causing a steep drop in resale value.
Mr Scherr also mentioned this in justifying Hertz’s slower take-up of the model.
‘The MSRP (Manufacturer’s Suggested Retail Price) declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that as salvage creates a larger loss and therefore greater burden,’ Mr Scherr said.
Prices on new Teslas have been dropping by up to 20 percent, according to Cadogan.
‘Face facts Tesla fanboy, how many 20 per cent price drops are sustainable for Tesla before the s***show just collapses,’ he said.
‘If cutting prices is the only counter measure for increased competition, Tesla is doomed.’
He pointed out that a bulk purchaser such as Hertz would be getting their Teslas at a significant discount and would have negotiated a good deal for maintenance.
‘Not even this has been sufficient to invert for Hertz the economics of the double whammy that Teslas are too expensive to repair and the resale value has imploded,’ Cadogan said.
The discounting of new Teslas was a cynical move that heavily impacted owners, according to Cadogan.
US car rental giant Hertz has announced that it plans to slow the introduction of Teslas into its fleet
‘Every time electronic Jesus just slashes prices, this greatly impacts existing owners resale value too,’ he argued.
‘He’s happy to trash existing owners if it keeps new faithful coming in, which is not a very sustainable long-term commercial strategy, is it.
‘If you really take the biggest bath on your (Tesla) Model 3 are you really going to front up again? How much of the Koolaid have you actually consumed?’
He thought what was true of Teslas was largely true of all battery-powered vehicles.
‘It seems every day there is another brick in the wall of evidence that this insane rush to transition to battery electric transport exclusively is little more than a buffet of all-you-can-eat of s*** sandwiches,’ he said.
‘And problematically I think we are running out of bread.’
In the video’s comments section many weighed in with their view of Tesla and electric vehicles and the sentiment was mostly negative.
‘If something is too expensive for large car rental company to own/operate, that’s good sign for us normal people to know,’ one added.
A second added: People are starting to realise that EVs are not the green utopia they fantasised about in their wildest dreams.’
A third said: ‘Proudly keeping my 1990’ Volvo wagons maintained and on the road. Also cant say enough how much the vintage interior makes for a welcome get away from the world filled with computer screens everwhere.
‘Yes, it needs premium gas, and gets 25mi/gal, yes it requires maintenance but overall its cheaper to insure and maintain than a $400/month car on 86 month loan.’
Toyota sales boss Sean Hanley told journalists last week that electric vehicles were ill-equipped for many typical Australian distances, stress and uses.
“It is too early,” Hanley said.
‘What battery electric vehicle do we have right now on sale in Australia that can tow 2.5 tonnes for 600km? We don’t. It doesn’t exist.
‘If we just move to only zero-emission vehicles, what are you going to tell the hundreds of thousands, if not millions of Australians who tow caravans, who use their cars for work, who need their cars on the land, who need their cars in the mine, who need more than a 200 or 300km range?’
Despite his comments, Hanley said Toyota was ‘not against battery electric vehicle technology’ and would launch its own model in Australia before the end of the year.
But he said hybrid vehicles were a practical technology for now and Toyota would lobby the federal government for a standard with a generous time-frame that cut pollution without cutting vehicle choices.
‘We’ve spoken to the government and I think we have represented the silent voices of hundreds of thousands of Australians consumers who use their cars for leisure, towing, and lots of other activities,’ he said.
‘I know some lobby groups have alleged we’ve tried to stop, prevent, stall electrification but that’s not true. We’ve simply represented the market truth and the market reality.’
Mr Hanley made the comments at the Japan Mobility Show, which featured Toyota’s first fully electric car for the Australian market, the delayed bZ4X SUV.
He argued Toyota could make more hybrid vehicles with the same materials used to create one electric car and that electric vehicles were ‘powered, in many cases, by electricity generated from coal’.
The observations did not go down well with Electric Vehicle Council chief executive, Behyad Jafari.
‘When we hear those arguments, what we need to pay close attention to is the economic interest of the car company,” Mr Jafari said.
‘Some businesses haven’t spent time developing electric vehicles and they don’t have a firm enough grasp on the issues.’
Toyota Motor Corporation President and CEO Akio Toyoda earlier this year said electric cars would not carry the full transition away from fossil fuels.
‘Frankly, (electric vehicles) are not the only way to achieve the world’s carbon neutrality goals,’ he said.
It was announced this week that US auto giant Ford will be cutting its investment in electric vehicles after the stunning news they lost approximately $US36,000 ($57,000) for every battery-powered vehicle produced.
Ford’s long-time rival General Motors also announced it had abandoned its target to produce 400,000 electric vehicles through the first half of 2024, citing slowing demand, manufacturing bottlenecks and low profitability.