Electric Vehicle Challenges

A big problem with buying an EV car is that its resale value is horrible... For example, if a petrol diesel car goes down in value by 20% in 2 years, an equally old EV sells at a discount of 42%... Which means you get a much poorer resale value and the depreciation on the car is much higher as an EV... This is because: 👉🏼 The EV battery is easily 30-40% the cost of the total car... And people have very little trust in what the condition of the battery is when they're buying something in the used car market. As there is no true battery health meter, and every manufacturer uses their own software, there is currently no standard measure to independently evaluate the health of an EV battery. 👉🏼 With the tech advancement in EVs, the range that you get in a new EV two years later is much higher than that in an old EV, so because of faster obsolescence, it makes sense to buy a new car It's almost like how at one point people prefered to buy a new phone than a used phone because they couldn't open the phone to check or didn't know if the battery was good enough to work. 👉🏼 So this is what you should when you are buying an EV: 1/ Ask the manufacturer on what is the warranty on the battery... so that you get at least 10-15 years of working life from the car, such that even if you sell it, the buyer has a warranty on the battery from the manufacturer itself. It's said that BYD has now introduced 8 year warranties, and Tata may launch 15 year warranties on some models... but this is only for first owners. Also ask the warranties for second owners. 2/ Ask them if the company has the option to swap the battery if it falls below a particular standard of performance, and if there is Battery as a Service, where you can swap to a new battery. For example, some MG models are said to have a rental for the battery where you pay a fixed price per kilometer as rent for the battery instead of owning the battery. 3/ And if you have to buy a used EV, please get a Certificate of State of Health (SoH) from the car manufacturer, such that there should not be more than 2% battery loss for every year of the car's age... and maybe get certified pre-owned to be safe. #casarthakahuja

A strong second-hand market for electric vehicles might be the most underrated catalyst for accelerating EV adoption. I always believed this in theory, but it became even clearer after my own recent experience buying a used EV. I just bought a 4-year-old EV with 45,000 km. Excellent condition, drives like new, and the price was 55% lower than when it was new. At first, I thought I had found a unicorn deal. But then I realised it wasn’t a one-off: most used EVs are selling at massive discounts. ❓ Why? After speaking with several people in the sector, the pattern became obvious: 1️⃣ Many buyers still fear battery degradation 2️⃣ Others worry the technology evolves so quickly that a used EV becomes obsolete too fast These concerns keep prices low, even when the product is excellent. ❗ After a decade working in electric mobility, I felt confident buying used and the truth is many of these fears are outdated: 🔋 Battery health today is easy to check with independent diagnostics. Real-world data shows that at 50,000 km most EVs lose almost no meaningful range. Most OEMs offer 8-year battery warranties. Full battery replacements are rare and usually only relevant after extremely high mileage, often above 500,000 km, at which point ICE cars need major repairs too. 💻 Technology risk exists, but it’s manageable. Yes, some early EVs only make sense at deep discounts. But many models remain competitive for years: EVs with 75 kWh batteries, 400-V systems above 150 kW charging speeds, or 800-V platforms. Teslas, Hyundai and others often sell at 50% or more below their original prices while still delivering top-tier performance. And the reality is that EVs of the next 10 to 15 years will not be radically different from these in everyday use. The 500km range we can find today is aligned with ICE vehicles and the charging speed is already very high in some models. ‼️ For buyers, this arbitrage is great news. For the industry, it’s a problem. The second-hand market is 4-5x larger than the new-car market. If consumers don’t trust used EVs, the entire ecosystem suffers. A healthy used market is essential for affordability and for accelerating adoption. And once people try an EV, they rarely go back to combustion. Moreover, there is almost no fiscal incentives exist for second-hand EVs. This is a major policy gap that could really have a positive impact on the secondary market. And here’s the counter-intuitive part: higher second-hand EV prices actually help sell more new EVs. Most new cars are sold through long-term leases. Leasing depends on residual values: 1️⃣ Low second-hand prices lead to low residuals, which lead to higher monthly payments, making new EVs harder to finance. 2️⃣ Stronger second-hand prices increase residuals, lower leasing costs and help sell more new EVs. A trusted, liquid second-hand market is the foundation of a scalable EV industry. Happy to chat with anyone considering buying a used electric car.

The most expensive assumption? Thinking everything is fine. Daniel's dealership bought this 2021 Tesla Model 3 Standard Range with 125k miles from an online auction. In full transparency, he shared with me that the car already had various diagnostic codes showing. However, nothing was related to the high voltage battery. This independent dealer in Phoenix, AZ is one of our customers. As soon as they got the car on their lot, they ran a Voltest that took just a couple of minutes. The report came back with a big red warning: severe cell imbalance detected. For context: imbalance refers to the voltage difference between the highest and lowest cells in the battery pack. This scenario represents one of several cases we've been documenting. When a significant imbalance like this occurs, the vehicle becomes inoperable, exactly what Daniel experienced. Now this 125k-mile vehicle, already out of battery warranty, needs a complete high-voltage battery replacement. Including labor, an average battery replacement for this Tesla Model 3 costs anything between $12.5k and $16k. Did the dealer pay at least $10k less at auction because of this issue? Absolutely not. This costly problem could have been identified in minutes with Voltest. The lack of transparency has damaged the relationship between the dealer and auction house, likely ending future business. Our daily testing data shows these severe cases aren't common, but when they occur, the battery replacement cost alone can devastate a dealer's montlhy profitability. And this case highlights exactly why pre-purchase EV battery condition verification is crucial whether you're buying from auctions, trade-ins, or private parties. Now, in these situations, my questions are always the same: Are you currently verifying battery condition before purchasing an EV? Should auctions make it more transparent?

India sold nearly 1.8 lakh EVs last month. What no one’s talking about is their second hand value. For the first time ever, EVs made up over 5% of all new vehicle registrations last month. Tata keeps selling Nexon EVs, Mahindra is going big on its BE lineup & Tesla’s also finally here But every new car eventually becomes an old car & when EVs enter India’s massive ₹1.6 lakh crore used-vehicle market, the rules change. With petrol and diesel cars, resale value is about brand, engine reliability, mileage, and maintenance. With EVs, it's majorly the battery which accounts for 50–60% of the car’s value. And if it’s degraded or dead, resale value collapses. Also, batteries degrade faster in India’s heat. That means two identical EVs, both 3 years old, can have very different ranges & wildly different resale prices. This uncertainty ripples outwards. Banks hesitate to lend. Insurers lower declared values. Finally, buyers worry about getting stuck with an expensive repair. But wait, it’s also an opportunity. If battery health can be measured and priced accurately, we could build a second-hand EV market that works. Modular battery packs, refurbishment programs, transferable warranties. All of these could give EVs a stronger resale value and keep batteries out of landfills. We broke this down with more insights in today’s Finshots Link’s in the profile.

Electric trucks have shorter ranges than do diesel ones, their charging times are longer, and thus their operational hours end up being shorter than diesel trucks. Truckers are being forced to raise their prices. “After Jan. 1, 2024, any new big rigs registered in California have to be powered by hydrogen or electricity. Already, planning the logistics for electric trucks has added 10 to 15 hours a week to a driver’s workload. California has nowhere near enough chargers to service the number of electric semi trucks that will soon be on the road.” Drivers “can’t risk a truck running out of #battery; getting towed only 10 miles costs $600.”   Furthermore, California’s Advanced Clean Fleets Regulation “mandates that companies rapidly phase out diesel semi trucks, starting with older models, and replace them with zero-emission trucks in an effort to improve air quality and limit greenhouse-gas emissions.”   A journalist rode along with one trucker. “He drove 9 miles south to a charging station near the Port of Long Beach, where he remained for an hour, charging the battery from 54% to 90%. He then made his first haul, picking up a container and delivering it to a customer.   A second haul started around noon and that was the last one for the day. In a diesel truck,” the driver said, “he could have made six hauls. But even the second one required another visit to the charging station—33 miles out of his way, and another hour and a half of charging. A diesel semi can fuel up in 15 minutes and then drive 1,000 miles—a round trip from Los Angeles to Reno, Nev.—before needing to refuel. Making the same trip, the driver’s electric truck would have to make six recharging stops of at least 90 minutes each.”   Drivers also faces the challenge of physically fitting their trucks next to a charger. “Many stations are in shopping-center parking lots, where a semi pulling a trailer can’t comfortably fit alongside passenger cars.” Drivers often leave “the truck’s trailer somewhere he won’t get a parking ticket, bobtails to the charger (driving the truck’s head alone), then goes back to get the trailer.”   “Electric trucks also weigh significantly more than their diesel counterparts, giving them less carrying capacity. The company uses #electrictrucks to carry products such as toilet paper and electronics. Using an electric truck to carry heavier goods, such as almonds or fresh produce, means fewer pallets and smaller loads.”   Calculations by the operations leader show the company had lost $310 by operating the electric semi instead of a diesel truck. To break even rather than take the loss, the company “tacked a surcharge onto the delivery. California consumers will ultimately pay for that.” #technology #innovation #startups #transportation #EVs #hype https://lnkd.in/g4PthF2e

I took a chance on a used 2017 Chevrolet Volt plug-in hybrid and I lost. The car drove fine… until it didn’t. Coolant system corrosion caused sensor issues linked to the heater core and high-voltage battery system. Chevrolet quoted up to $3,500 to fix it in a worst-case scenario, but the required parts are on national backorder with no clear availability timeline. I tried to find other repair options, but most shops, even with hybrid experience, weren’t interested or quoted even higher prices. This experience left me questioning the real-world serviceability of hybrids (HEV), plug-in hybrids (PHEV), extended-range EVs (EREV), and full battery EVs (BEV). It also made me rethink best practices when buying used electrified vehicles. I’d suggest paying a professional and checking: 1. Battery Health Have the dealer or shop pull detailed battery diagnostics. This should show capacity, cell balance, and cycle count. More than ~15% degradation on a car under 10 years old is a red flag—either walk away or negotiate hard. 2. Coolant System Hybrids and EVs circulate coolant through the battery pack. Look for leaks, crusty hoses, or milky residue around the heater core and pump. Corrosion here can kill sensors, and in worst cases, take out the entire pack. Sniff for a burnt-coolant smell. That’s usually bad news. 3. Charge Port and Cables Plug it in yourself. Does the port lock properly? Does anything heat up oddly? Any warning lights? Test Level 2 and DC fast charging. 4. Drive It Cold and Hot Start the car cold in the morning, then drive it again after a 30-minute highway run. Crank the heat and A/C. Weak heating or cooling can point to deeper problems. Hybrids can hide regen-brake issues or motor whine once warm. EVs? Watch for sudden power drops—often a sign of inverter trouble. 5. Scan for Codes Use a pro-grade tool like GM Tech2 or Toyota Techstream—or at least a decent Bluetooth scanner with the right app. Hybrids throw P0Axx-type codes that basic scanners often miss. 6. Service History Deep Dive Look for battery recalls, software updates, and any signs of flood damage. Run the VIN through NHTSA and Carfax, but also ask the seller for dealer service records. 7. Test Regen and Brakes On a downhill, lift off the accelerator. Does it slow smoothly? Jerky or weak regen can mean worn components or a battery pack on its way out. 8. Make a Model-Specific Cheat Sheet Every platform has known gremlins: Toyota Prius – Battery fan noise, coolant leaks Volt – Shift-to-park issues, coolant corrosion (my problems) Nissan Leaf – Battery temp sensor failures, fast range loss Tesla – Door handles, MCU glitches Test every feature and spend the $250 on an EV- or hybrid-savvy pre-purchase inspection. They’ll catch what you can’t, and it’s a lot cheaper than regret. If you’ve got other tips or warning stories, please drop them in the comments. Someone else might be a winner because of you.

Last week I purchased a used EV. In the buying process, I was surprised at how many people, even EV drivers themselves, cautioned against buying a pre-owned vehicle. Let me be clear - I've never owned a truly new car. I am perfectly comfortable with an odometer that's well into six-figure territory. As an engineer, I think it demonstrates the ultimate test of quality and durability. I've never known the comfort (or cost) of a warranty. With EVs, the question of battery longevity always comes into play. Well-timed with my insistence that this was not a concern for me, The Wall Street Journal published an article on about EV batteries exceeding durability expectations, bolstering confidence in the EV market. Some interesting tidbits I pulled from the article: 🔋 The average EV retains about 95% of its original driving range after five years. 🚗 High-mileage vehicles are demonstrating remarkable durability, with some surpassing 200,000+ miles while still delivering reliable long-distance performance. 📉 Battery replacements have become increasingly rare. While early-generation EVs experienced higher replacement rates, newer models have seen that number drop dramatically thanks to improvements in battery chemistry, thermal management, and battery management systems. Read the WSJ article here: https://lnkd.in/eQXpHhKS

Hundreds of used Teslas have hit the Hertz car sales website after the company announced it was selling off 20,000 EVs from its fleet last week. Across the US, there were 657 Teslas to choose from — mostly Model 3s — with some listings as low as $20,125 when checked on Thursday afternoon.       It's a screaming deal for shoppers in the market for a used Tesla or any budget-minded EV shopper. A car-rental company like Hertz is always a good place to look for a deal on a used car, but when it comes to EVs, there are a number of different pitfalls to keep in mind since the used market is not near as mature for battery-powered vehicles. 1. Mileage and battery usage A used Tesla that has been in a rental fleet is likely to be used much more frequently than one that's been personally owned. You can see that in the difference in mileage for a used Model 3. A comparable vehicle at the used car delership in Southeast Michigan was listed for $27,995 with 46,171 miles.       That $20,125 Model 3 on the Hertz website, a 2021 model, was listed with 92,789 miles. Mileage is always something to consider when shopping for a used car, but with electric vehicles little is known at this early stage about battery deterioration at high mileages. This mystery in the valuation equation has created a headache for the industry as more electric cars hit the used market. 2. Maintenance Used cars tend to require more maintenance than a car fresh from the factory. With an EV that can look different than a simple part or filter replacement.       One of the reasons Hertz cited in its filing for reducing its EV fleet was the elevated cost of maintenance for these vehicles. Teslas in particular are notoriously difficult to service, due to the lack of brick-and-mortar infrastructure for Tesla service and the level of technology packed into the cars. Even something as simple as a fender bender can be difficult to manage with a Tesla, and these cars are a lot easier to total than their gas-powered counterparts. 3. Consider the cost of keeping your Tesla charged While $20,000 is an incredible deal in today's car market (the average new car sells for around $46,000, and the average new EV closer to $50,000), adding an EV to your driveway comes with more than just the sticker price on the car. In order to get the most out of an electric vehicle, it's usually recommended to have some form of fast charging at home. These chargers cost anywhere from $250 to $750, and installation can run you somewhere around $1,600. 4. Electric cars depreciate quickly Perhaps one of the reasons you can get such a good deal on a Tesla at Hertz right now is that the outlook for EV value retention is pretty grim at the moment. An average five-year depreciation rate of 49.1%, compared to an industry average of 38.8%. Tesla's Model 3 does fare the best in resale values, only falling 42.9% in five years. - Bloomberg

Are you ready to buy your first electric vehicle? I congratulate you on being conscientious and contributing to the future of the planet by reducing your carbon footprint. However, as a vehicle handler who specializes in vehicle exports from the U.S. I need to warn you about a few "potholes" you need to avoid when buying an EV or hybrid. A customer recently purchased a 2015 Ford Focus EV. This makes the vehicle about 9 years old. This unit was well maintained and had never been in an accident. However, the process to get it approved for export dragged on a bit and the vehicle would not run and drive after sitting in the lot for 3+ weeks. After much back and forth it appears that the Lithium-Ion battery (the large hi-voltage battery) has to be replaced and is out of warrantee (8 years for this model). The cost of a replacement is about $ 15,000 and the vehicle is worth less in the market than it will cost to replace the battery. Electric vehicles are still pretty new and we are learning what to look out for while we are shopping for one. Before buying an EV or hybrid vehicle for export, please make sure to get as much information as you can about the unit and use the following list to help you decide whether to buy it, once you selected a specific vehicle" 1. ➡ Start by purchasing a Carfax report for the specific vehicle. You will need the VIN (vehicle identification number) to request it. Note: If it has been involved in an accident of any kind, skip the vehicle and go to the next one. The carrier will NOT accept the vehicle for transportation due to the higher possibility of an onboard fire! 2. ➡ If the Carfax report comes back clean, but the vehicle has a recall, the carrier may give you trouble when requesting service. Get a confirmation from the carrier that they will take it, and make sure the manufacturer's recall has been satisfied before shipping the vehicle out of the U.S, if at all possible. 3. ➡ Calculate how old the battery is and make sure it is still under warrantee when you buy it. Checking this is pretty easy on Google. Buying a 'new' electric vehicle is your safest bet since it will have a clean Carfax and the battery will be brand new. Battery technology keeps improving and future models will continue to get better. Future battery technology, and designs, may offer options of greater servicability. As new information comes to light, I will continue to update the export conditions of EV's and Hybrids. If you have any questions, please feel free to drop me a DM so I can help you answer any questions you may have about vehicle exportations from the U.S.A. #ElectricVehicles, #export #Automobiles