Why luxury auto dealer Tom Maoli predicts an imminent EV crash

When it pertains to the automotive industry, most believe that dealers are headed in the direction of electric vehicles (EVs). Or at least that lingering question crosses many dealers’ minds as they transition into the new year. Today on Inside Automotive, Tom Maoli, president and CEO of Celebrity Motor Car, discusses his perspective on what’s yet to come. 

Dealers are currently dealing with rising prices, declining inventories, supply shortages in U.S. trade with China, and declining manufacturer allocation. What’s happening in China, according to Maoli, “is a direct correlation between tariffs and the outcomes of the Trump Administration.” Ahead of the new year, he also says that “OEMs are worried about consumer brand loyalty and the future.” OEMs don’t want customers to feel misled about the cost of their vehicles, but it’s difficult to prevent given labor costs are rising and every other expense as a result of high-interest rates.

Maoli claims, “there is an EV push coming from the government and OEMs, but the publicized survey results don’t reflect what consumers are saying on the dealers’ sales floor”. Within the next six to seven years, the EV marketplace that most manufacturers are entering will account for around 16%.

However, there aren’t enough consumers to account for all the manufacturers producing and pushing EVs. Maoli is calling for an “EV crash”.  Low demand from consumers and struggling EV manufacturers will lead to the crash. With less than 10% of EVs sold in dealerships and sales declining, manufacturers will be forced to reduce production. 

According to Maoli, “the cycle continues to repeat itself”. “The same thing happened with customer demand for diesel, hybrids, and now electric. “Everyone has great ideas- going green,” notes Maoli. But, when politicians grab onto those ideas to grab ahold of votes, it’s not cost-effective and in the end, “it doesn’t make sense”. “So yes, EVs may be a piece of the market, but they won’t take over”.