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Electric Car Prices Are Rising Faster Than ICE Cars

Electric Car Prices Are Rising Faster Than ICE Cars

In 2019, market analysis and research firm Deloitte predicted that electric vehicles would reach price parity with combustion-powered counterparts in 2022. One year later, General Motors Chief Technology Officer Matt Tsien shared his optimism about EV prices. Cost parity between EVs and conventionally powered vehicles “will come sooner than many people think,” he said during a keynote speech at a Society of Automotive Analysts event. Skip forward to the second half of 2022, and EV prices are running away from ICE cars. The latest analysis from iSeeCars.com reveals just how much more expensive used EVs are, and recent MSRP hikes are driving new EV prices even higher. 

Used Electric Car Prices Up 54.3% In One Year

Used car prices are dropping rapidly at the wholesale level, however buyers have yet to see any significant price drops at the retail level. Over the past eight weeks, used car prices have dropped nearly 5 percent at dealer auctions. Could the car price bubble be finally coming to an end? If you’re in the market for an electric vehicle or plug-in hybrid, we’re far from it. 

According to data from iSeeCars, used electric car prices saw an increase of 54.3% from July of 2021 to July 2022. Over the same period, gas-powered cars were up just 10.1%. Number crunchers at iSeeCars analyzed the prices of over 13.8 million 1-5 year old used cars sold between January and July of 2021 and 2022 to determine the price growth of electric cars compared to ICE vehicles.

Source: iSeeCars.com

As gas prices reached new records this spring, the demand for EVs rose in parallel. However, a closer look at the data reveals that the few affordable electric cars on the market saw the greatest price increases, and by a long shot. 

At a time when the average EV transaction price is over $66,000, the future of electric mobility is riding on the success of more affordable options. The number of sub-$40,000 EVs seems to be shrinking by the day. 

Are Affordable EVs Going Extinct? It Appears So

iSeeCars found that America’s two most affordable electric cars saw prices increase the most. Used Chevrolet Bolt prices were up 29.3% since 2021, and used Nissan Leaf prices were up 45%. For the Leaf (which starts at $27,800 new), this massive price spike translates to an average sale price of $28,787 in July 2022. The average used Chevy Bolt sold for $28,291 last month. Considering the specs of the Bolt (notably charging capabilities), that’s a lot of money for a used EV.

With DC fast charging times typically around 45 minutes to one hour to add 200 miles of range, both of these electric models are likely to see drastic depreciation as much faster charging EVs become more commonplace. This is especially true for the Leaf, which lacks the decent range of the Bolt.

Source: iSeeCars.com

The Kia Niro EV seems to be the outlier here. With 239 miles of EPA-rated range and 77 kilowatt DC fast charging capability, it almost seems like a good deal with used Niro EV prices ‘only’ increasing 15.7% year-over-year. At the time of writing, used Kia Niro EVs are priced between $35,000 and $43,000.

Another Day, Another EV Price Hike

New electric vehicles are seeing price hikes, too. Just last week, Ford announced that the 2023 Mustang Mach-E was getting a massive price increase. The base Select trim now starts at $48,195 (up $3,200). The rear-wheel drive option was eliminated, effectively canceling the most affordable Mustang Mach-E. The most popular trim, the Premium AWD Mustang Mach-E, now starts at $56,175 before the $1,300 destination fee. That’s a $6,075 increase from earlier in 2022.

When Ford reopened F-150 Lightning orders in August, the news was accompanied by a $6,000 to $8,500 price increase. The most affordable F-150 Lightning now starts at $46,974. Most buyers will want the XLT with extended range, and that option now starts at $80,974. Will Ford lower the price by $1,000 to qualify for the new EV tax credit? We’ll find out soon enough. 

Tesla prices are up over 20% since early 2021. The Model 3 is now 27% more expensive, and the most popular EV in America, the Model Y, now costs 30% more with a starting price of $65,990. Rivian made headlines when they canceled the most affordable configuration of the Rivian R1T electric truck. Anyone with basic math skills (or a calculator) can see that new and used EVs alike are becoming more expensive.

When Will EV Prices Go Down?

This right here is the question we’re all doing our best to answer. Still, it’s hard to tell. Here’s what needs to happen before EV prices will go down:

  • EV production and inventory must increase
  • For that to happen, supply chain constraints must ease
  • Battery suppliers must continue to meet demand
  • Automakers need to commit to affordable models rather than luxury EVs
  • More EV competition may drive prices down

Is there any good news? It depends on which EVs you’re interested in, and your buying timeline. The new EV tax credit is the first to ever offer a used EV tax credit and future rebate, however strict eligibility requirements for both are causing an uproar. For some, buying an EV may soon be thousands of dollars cheaper. For others, federal EV incentives vanished when President Biden signed the Inflation Reduction Act of 2022 into law. See which new EVs and used EVs qualify for the revised incentives. 

Want to stay informed about the latest EV pricing, ownership and development news? Join the CarEdge Community for free. Our Electric Vehicle forum is the place to be for EV discussion, advice and expert consultation!

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Electric Vehicles Will FAIL Unless We Make These 5 Changes….Fast

Electric Vehicles Will FAIL Unless We Make These 5 Changes….Fast

After four months of electric vehicle ownership, my perspectives about the mass transition to electric vehicles have evolved. I no longer think that everyone should run out and buy an EV right now (besides, that’s not possible). I have a greater understanding of the skepticism that accompanies the push to EVs. All-in-all, I feel that I now understand the arguments from both sides: electric vehicles are amazing, better for the planet (in the long run) and fun to drive, however EVs are not even close to being ready for mass adoption. 

Automakers have committed well over half a trillion dollars to electric vehicle research and development, marketing and most importantly, charging infrastructure buildout. But the grid isn’t ready, charging providers aren’t ready, and the American public has a LOT to learn before making the switch. EVs could still fail, and bring down the automotive industry with them. We’d hate to see that. These are 5 things that must happen in this decade to prepare the world for electric mobility.

EV Cost Parity: Electric Cars Are Much Too Expensive

The average price paid for an EV surpassed $66,000, on par with the overall luxury segment.

For years and years, I touted the coming cost parity that would finally make EVs just as affordable as any other car. Industry experts always told us that EV price parity would come when battery costs dropped below $100 per kilowatt-hour. Just as that milestone arrived, the world was turned upside down by the COVID-19 pandemic. 

Global factory shutdowns disrupted the supply chains that all automakers rely on, and most notably those related to semiconductor chip production. Without the parts to make the cars, electric vehicle growth was held back just as the public warmed up to them. Raw materials used in both vehicle and battery manufacturing increased in cost by over 100%, and many automakers have passed the premiums on to consumers.

Today, electric vehicles cost more, and inventory is slim. Kelley Blue Book’s June 2022 car price data shows that the average EV transaction was $66,000, $18,000 over the overall car market average of $48,000. One year ago, the average EV transaction was $52,486, or 10.8% less than it was in June of 2020. In short, EV prices are headed in the wrong direction just as automakers are getting serious about making them. 

Monthly Payments Are ALREADY Out of Control

In the age of record smashing, here’s one that will give pause: In June, the estimated average monthly payment increased to $730, which is a new record high. A new car monthly payment now costs as much as rent in many parts of the country. We’re seeing more and more car payments over $1,000 a month. The insane records don’t end there

More cars are being repossessed as more auto payments are going past-due. With the way things stand today, either EVs will have to become more affordable, or their luxury pricing will soon risk worsening the auto loan crisis.

Avoid the Next Shortage: Batteries Will Be the New Oil

Earlier this year, Rivian CEO and Founder RJ Scaringe predicted that battery shortages would be the next disruption that the automotive industry would face. In fact, automakers are already rationing the batteries they have, and those they have lined up. Ever wondered why there are so few electric full-sized SUVs? Building those at scale would require a lot more batteries. 

The average EV contains $8,255 of raw materials according to CNBC. That’s more than double the amount in combustion-powered counterparts. President Biden has even authorized use of the Defense Production Act to aid the situation by increasing domestic EV production and related supply chains. 

For the most part, automakers don’t make their own batteries. They rely on contracts with battery manufacturers like Panasonic, LG Chem, and CATL to supply what their lofty plans for electric vehicles will need. That’s changing little by little. Tesla has started to produce small quantities of its new 4680 battery cells next to Giga Austin. 

General Motors just received a $2.5 BILLION dollar loan from the U.S. Department of Energy for manufacturing the Ultium battery in Tennessee. Slowly but surely, some OEMs are taking control of their own battery supply chains. This will be key to avoiding battery shortages. 

EV market share SOARS in America. See the latest numbers.

Build Out Charging Infrastructure the Right Way

Tesla supercharger map
Tesla Supercharger locations

Over 62% of Americans support building out a nationwide charging network, and 39% of American drivers are considering buying an electric vehicle next time they’re in the market for a car. Frugal drivers are welcoming the fuel savings, albeit at a higher upfront cost. At current residential electricity rates, charging up is equivalent to spending about $1.00 per gallon of gas. The most expensive public chargers may approach $2.50 per gallon equivalent. 

However, many Americans live in a charging desert. What good is the EV revolution if there’s nowhere to charge? Most EV drivers plug in at home, but not everyone can do that. From apartment dwellers to rural residents, owning an EV simply isn’t viable if there aren’t chargers for road trips, family visits and work transportation needs. When it makes sense for consumers, electric vehicles offer plenty of benefits. Cheaper fuel, less maintenance, sporty performance and no tailpipe emissions to name a few. But EVs risk remaining a symbol of luxury and impracticality if it doesn’t get a lot easier to charge up in America. 

2021’s Bipartisan Infrastructure Act included $7.5 billion for the build-out of a national charging network. In summary, federal funding is supposed to get the ball rolling, and the private sector will take it from there. EV charging stations, particularly DC fast chargers, are really expensive to install. On top of upfront costs, America’s electrical grid is not ready for the demand that would be generated by mass adoption of EVs. 

The deadline is nearing for states to submit their plans for how they will spend their allocated funding for EV charging. Will they use the funding to install reliable, standardized fast charging stations along major transportation corridors and rural areas alike? We’ll soon find out.

Public Education: Tell the World What It’s Like to Drive Electric

The following are all things I’ve encountered at Electrify America charging stations: 

  • A brand-new Kia EV6 arriving at 0% without A/C on
  • A driver standing in pouring rain for five minutes trying to charge
  • Using the wrong connector type on a $60k car
  • Many, many Chevy Bolts, Audi e-trons and VW ID.4s using the 350 kilowatt stations, despite their cars only accepting half of that. 

We need to do better to educate EV buyers and prospective EV buyers about how to drive electric without the hassles. We can’t blame the consumer, EVs bring a very different ownership experience. But whose responsibility is it to educate drivers? The dealership? The automaker? The driver themself? Guys like me?

In reality, it will need to be all of the above. General Motors is leaning heavily on the success of what they call affordable EVs to dominate sales by the end of this decade. In the first real sign that OEMs might be taking their newfound responsibility seriously, Chevrolet just launched a great live chat and immersive experience on their website that is entirely devoted to educating the public about their EVs, with an emphasis on the ownership experience. We need more of that, and soon.

GM EV support

The woman I met who arrived at a charging station with 0% state of charge and no A/C should, in my opinion, be upset with her Kia dealer. She loved the car, but no one had explained to her how to plan for interstate travel in an EV. Dealers sell most vehicles in America, but the dealership sales model is under serious threat from the rising popularity of direct-to-consumer sales. Everyone wants to be Tesla. If legacy automakers are to stand a chance in the EV race, more OEMs need to prepare their dealer networks for the public education that comes along with selling EVs. 

Don’t Forget the Power of Innovation

Does the lack of affordability, charging infrastructure and public awareness mean the electrification of the auto industry is doomed for failure? No, not at all. That’s because there’s still time to right wrongs, and to build out the nation’s charging infrastructure the right way. EVs are still under 6% market share in the U.S. (See the latest EV market share numbers here.) If these same problems persist when we exceed 15%, that will be real cause for concern. 

It’s true that the electrical grid isn’t ready for mass adoption of EVs, but it’s getting there. Grid-scale battery megapacks (also pioneered by Tesla) are already being deployed to provide grid stability in times when the supply of electricity is not keeping up with demand. The sun only shines in the day, the wind is intermittent, but grid-scale batteries store and supply power from these renewable sources whenever they are most needed. Now, it’s like the sun is shining at night. These changes take time. Plus, the push for grid-scale battery storage could throw a wrench in EV battery supply chains. Nothing is certain, but things are moving in the right direction.

5 Innovations On the Way

These are some innovations that have the potential to make electric vehicles more affordable with longer ranges, faster charging and improved safety. These innovations also make EV supply chains less damaging to the environment and less harmful to vulnerable communities worldwide.

  • Solid-state batteries are expected to enter mass production in just a few years. They promise higher energy density, lighter weight, and less rare earth metals for production. 
  • Cobalt-free batteries are entering production now, reducing the need for this element that is too often associated with child labor and environmental degradation
  • Newer battery technologies are more energy-dense, meaning that more range is powered from the same-sized battery. In reality, automakers are likely to keep range figures around 250-350 miles, but they’ll require fewer batteries to get there. 
  • EVs burn through tires quickly. Michelin, Goodyear and others are designing EV-specific tires that will have longer lives on the road. 
  • Battery recycling and reuse efforts have recently received more attention as automakers and environmental health agencies work to avoid batteries ending up in landfills.

How can the nation as a whole get to where it needs to be by, say, 2025? I’ll leave you with my own suggestion for legacy automakers and policymakers: don’t be afraid to learn from Tesla. A seamless, almost hassle-free EV ownership experience already exists in America, from plug-and-charge, reliable fast charging to the peace of mind that comes with the vast Supercharger network. I encourage all policymakers and engineers to learn from Tesla’s successful growth strategies. Will automakers and politicians have the courage to consult Elon Musk’s Tesla, or will they try to figure it all out on their own? What do you think?

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New Electric Cars in 2023 and Beyond: Car Wars Study Says EVs Will Dominate VERY Soon

New Electric Cars in 2023 and Beyond: Car Wars Study Says EVs Will Dominate VERY Soon

As much as I love electric vehicles, their faults are not lost on me. Charging infrastructure lacks, service outside of warranty is costly, and most of all, they’re really expensive. Despite the hurdles facing EVs in 2022, a new Bank of America Merrill Lynch Car Wars study predicts that EVs, PHEVs and hybrids will make up 60% of new models in 2026. With so many new electric cars coming making debuts in 2023 and 2024, time is running out to prepare the masses for the big changes ahead. 

Car Wars? More Like EVs Wars…

Every year, Bank of America Merrill Lynch releases their cleverly-named Car Wars report. The report leverages the bank’s access to big data to forecast automotive industry trends like no other. In the 2022 Car Wars Report, John Murphy, a senior auto analyst at Bank of America Merrill Lynch, told Automotive News that he expects automakers to launch roughly 245 new models over the next four years. That averages out to 61 new models per year — 50 percent higher than the average over the past two decades. 

Why the flood of new car models? Simply put, new powertrains inspire new models. No one wants to retrofit a billion-dollar electric powertrain onto a decades-old chassis. 

Market Share and Replacement Forecasts Draw Headlines

Analysists took the strategies of each major automaker into consideration and shared their market share forecasts for model year 2025. Notably, Stellantis and Nissan are forecast to lose market share despite funneling billions of dollars into new electrified models. General Motors, Honda and European brands are forecast to maintain steady market share in the U.S. market. With the upcoming Silverado EV, Cadillac Lyriq and Equinox EVs just around the corner, it’s not what automakers like to hear at such a crucial moment.

EV market share forecast
Graph via Automotive News

The automakers with the highest model replacement rate fared best in the Car Wars analysis. Ford, Toyota and the Korean automakers have the highest expected replacement rate, and therefore are expected to gain market share.

However it’s what Bank of America thinks about Tesla that’s drawing headlines.

Tesla Market Share Forecast: Massive Drop in a Few Short Years

Tesla Cybertruck
202? Tesla Cybertruck: The next big thing, or a pipe dream?

In the annual Car Wars study, Bank of America Merrill Lynch senior auto analyst John Murphy predicts that Tesla’s EV market share will drop from over 70% today to just 11% in 2025. That’s the most pessimistic Tesla forecast we’ve seen in a few years, harkening back to when talking heads from legacy automakers regularly predicted doom and gloom for Tesla. 

Why the forecasted 60% drop in market share? Murphy cites the massive push to electrification from the likes of Ford, General Motors, Hyundai and Kia. It’s not clear if Murphy considered the significance of Tesla’s Supercharger Network, top-notch over-the-air update capabilities and high brand loyalty in his forecast. What do you think?

Looking for EV sales numbers? July is here, and that means the second quarter of 2022 has come to an end. As automakers release their Q2 2022 EV sales numbers, be sure to check the latest updates and statistics at CarEdge’s EV market share and vehicle sales report.

2023 Will Debut Blockbuster Electric Cars 

EV market share forecast 2022 new models

Of the new models introduced between 2023-2026, 60 percent will be either electric or hybrid while 40 percent will be internal combustion. Among notable 2023 electric cars just around the corner are electric trucks, sedans, and a whole lot of crossovers. 

  • Chevrolet Silverado EV: With up to 400 miles of range, ultra-fast charging and massive vehicle-to-load power delivery, many truck buyers are passing up the F-150 Lightning and eagerly waiting for the Silverado EV.
  • Fisker Ocean: This electric crossover starts at under $40,000, and even the top trims will hit the market under $70,000. Experienced automaker Magna will assemble the Ocean. I’m a fan!
  • Chevrolet Equinox EV: Another electric crossover finalizing pre-production engineering is the Ultium-powered electric Equinox, which GM says will start around $30,000. Too good to be true?
  • Honda Prologue: Perhaps you’ve wondered where Honda’s electric vehicles are? There are none, at least not in the North American market. That’s all about to change next year when General Motors begins building the Prologue EV for Honda. Yes, you read that right!
  • Chrysler Airflow: The sleek Airflow concept is the vanguard of what Stellantis has on the horizon. This electric sedan is one of many Chrysler EVs to come, as the brand intends to go all-electric in just 6 years.
  • Rivian R1S: The R1T electric adventure truck is already hitting the road, but next year will see accelerated deliveries of a full-size SUV that the market craves, the R1S.

The Takeaway: The Threshold Moment for Electrified Powertrains Is Here

Headline-grabbing claims aside, this EV market share forecast is in line with much of the industry’s thinking. In fact, automakers are sure to hope that these numbers become reality, as they are actively investing a cumulative total of roughly $500 billion dollars in electrifying their lineups. 

With high-stakes new electric cars in 2023, legacy automakers are definitely taking EVs seriously. Which 2023 electric car are you most excited about?

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Electric Vehicle Recalls in 2022: The Latest Updates

Electric Vehicle Recalls in 2022: The Latest Updates

As drivers warm up to the idea of going electric, every electric vehicle recall is sure to turn heads, regardless of severity. 2022 is a huge year for automakers unveiling their next generation of electric vehicles. With over half a trillion dollars invested in EVs, there’s a lot riding on the success of these new arrivals. Several electric vehicle models have already been subjected to recalls. Fortunately, most of them do not directly involve electric powertrains. These are the EVs facing recalls in 2022. We’ll update this page as future recalls are inevitably announced.

Rivian Recalls

rivian recall

October 2022 – Rivian recalled every vehicle it has produced, including all R1T electric trucks, R1S electric SUVs, and EDVs produced for Amazon. The vehicles were recalled because of concerns that a bolt in steering assemblies wasn’t sufficiently tightened.

No accidents have been reported, but the recall is still causing massive headaches for the young automaker. The recall fix is already available, it’s as simple as tightening a (very important) screw. However, the challenge lies in the limited locations of Rivian Service Centers. For example, the state of Texas has one service center in Houston. There are just 5 Rivian service centers on the entire East Coast. Most locations are in California. See the full list of locations.

Fortunately, Rivian has mobile service technicians, but they’ll surely have their hands full. See additional details on the Rivian recall here.

Toyota bZ4X and Subaru Solterra Recalls

June 23, 2022 – The Toyota bZ4x and Subaru Solterra are EV siblings co-developed by the two Japanese automakers. Just a month into deliveries, the two models have been recalled globally due to an issue with their wheel hub bolts that could in fact cause the wheels to fall off. Fortunately, the issue does not involve Toyota and Subaru’s brand-new electric powertrain. 

2023 Subaru Solterra 2023 first look
2023 Subaru Solterra

The US National Highway Traffic Safety Administration (NHTSA) recall notice warns owners not to drive their vehicles until they are repaired. This isn’t a good look considering the significance of Toyota’s first all-electric vehicle. A bZ4X and Solterra recall remedy is currently under development according to the US NHTSA.

“The cause of the issue and the driving patterns under which this issue could occur are still under investigation,” the notice says.

The recall affects 2,700 bZ4x models and 2,600 Solterras globally. See if your Toyota bZ4X VIN number is subject to the recall at Toyota’s official recall page. You can check if your Subaru Solterra is impacted at Subaru’s official recall site.

Ford F-150 Lightning Recalls

June 27, 2022 – The electric F-150 Lightning is the most-anticipated new model making a debut this year. Ford Motor is recalling 2,906 F-150 Lightnings because of a software issue that could result in a failure to provide low tire pressure warnings. The 200,000 F-150 Lightning reservation holders are certainly relieved to find that this recall is not related to Ford’s all-new electric powertrain. 

In this particular recall, simple human error is at fault. Ford says that the recommended tire cold inflation pressure was incorrectly set to 35 psi instead of 42 psi. No accidents have resulted from this F-150 Lightning recall, but it’s the fix that’s noteworthy. The recall gives Ford a publicized opportunity to show the world that the F-150 Lightning is OTA capable. Over-the-air updates, first implemented on a large scale by Tesla, are no easy feat. Plenty of automakers can update navigation and infotainment via OTA update, but few are capable of firmware OTA updates that tinker with the powertrain. 

Learn more about how over-the-air updates are changing how cars get serviced.

F-150 Lightning Recall Fix: Those who wish to receive the recall fix immediately may head to a Ford dealership service center immediately. Otherwise, Ford says the over-the-air update will be available to download via home WiFi within a few weeks. Check to see if your F-150 Lighting VIN number is impacted by the recall at Ford’s official recall page.

Hyundai IONIQ 5 and Kia EV6 Recalls

Hyundai IONIQ 5
Hyundai IONIQ 5

May 13, 2022 – As an IONIQ 5 owner myself, I was not thrilled to see the first manufacturer recall coming in one month into ownership. The US National Highway Traffic Safety Administration (NHTSA), Hyundai and Kia have announced a recall for select VIN numbers of the 2022 model year Hyundai IONIQ 5 and Kia EV6.

The IONIQ 5 and EV6 share Hyundai Motor Group’s new e-GMP electric platform. The recall is for the potential for disruptions to the vehicle’s parking actuator system when the vehicle is off. Sudden voltage fluctuations may occur while the vehicle is off, potentially causing the parked vehicle to disengage from ‘Park’ momentarily. If this occurs while the vehicle is parked on uneven terrain, vehicle rollaway is possible. 

IONIQ 5 and EV6 recall fix: A fix is already available, but you’ll have to visit your Hyundai or Kia dealership service center. I just got the recall fix done at my local Hyundai dealer. They had never seen an IONIQ 5 before, and one employee asked if I was coming in for an oil change. Nevertheless, I was in and out of the dealership in about 30 minutes. 

Check to see if your Hyundai IONIQ 5 is involved in this recall at Hyundai’s official recall page. You can see if your Kia EV6 is impacted at Kia’s official recall page.

Learn more about the IONIQ 5 recall here. Unfazed by the recall and looking to buy an IONIQ 5? Here’s how I found a Limited AWD IONIQ 5 at MSRP. It wasn’t easy.

Ford Mustang Mach-E Recalls

2022 Ford Mustang Mach-E
2022 Ford Mustang Mach-E

June 14, 2022 – Ford is recalling all 50,000 Mustang Mach-E electric crossovers because of the risk of power loss. The possible power loss could occur while the vehicle is in motion or parked. 

The recall is due to problems with the Mustang Mach-E’s battery contactor, which is a switch that determines which vehicle components the battery sends power to. Interestingly, the power loss is more likely to occur when putting the pedal to the metal for maximum acceleration, according to Ford. If power loss occurs, a powertrain malfunction warning light will illuminate on the dashboard, and the vehicle will display “Stop Safely Now’ in the gauge cluster behind the steering wheel. Clearly, it’s time to pull over immediately with a message like that. 

Ford Mustang Mach-E recall fix: Ford has pursued Tesla in more ways than one. In addition to ending EV lease buyouts and going for direct-to-consumer sales via Ford Model e, Ford has brought over-the-air updates to its lineup. Ford says that Mustang Mach-E owners will receive an over-the-air update sometime in July to install a software remedy for the recall. Until then, a stop-sale is in place. 

Learn more about the Ford Mustang Mach-E recall at Ford’s official recall page.

CarEdge’s Take

Several hundred automotive recalls happen every year across vehicle classes and powertrains. There will surely be more to come. What we’ll be keeping an eye on is how the latest electric powertrains are performing. Luckily, most of the EV recalls to date have been for components other than the electric powertrain. However, we all remember how the Chevrolet Bolt recall and fire hazard tarnished GM’s reputation. Check back for the latest updates!

The F-150 Lightning Recall Shows Why Ford Has An Advantage

The F-150 Lightning Recall Shows Why Ford Has An Advantage

Between 500 and 800 auto recalls are issued every year, affecting tens of millions of American vehicles. In fact, recalls have become so common that many drivers simply ignore them, which is a dangerous move. Fortunately, some automakers are making it possible to address recalls from the comfort of home. Ford’s F-150 Lightning electric truck is now subject to a recall, and Ford’s Blue Oval Intelligence feature is making the fix easier than ever before. But make no mistake: Ford’s over-the-air update capability has roots in Tesla’s decade of success. 

2022 F-150 Lightning Recall

2022 Ford F-150 Lightning Lariat
2022 Ford F-150 Lightning Lariat

Ford Motor said Monday it will recall 2,906 F-150 Lightnings because a software issue could result in a failure to provide warning of low tire pressure. The 200,000 F-150 Lightning reservation holders are certainly relieved to find that this recall is not related to Ford’s all-new electric powertrain. In this particular recall, simple human error is at fault. Ford says that the recommended tire cold inflation pressure was incorrectly set to 35 psi instead of 42 psi. 

No accidents have resulted from this F-150 Lightning recall, but it’s the fix that’s noteworthy. The recall gives Ford a publicized opportunity to show the world that the F-150 Lightning is OTA capable. Over-the-air (OTA) updates have long been a top selling point of Tesla’s electric vehicles. By enabling vehicle software updates over a home wifi internet connection, OTA updates are convenient for both drivers and automakers alike. 

Here’s our complete guide to automotive over-the-air updates, and what they mean for your car.

Ford’s first OTA updates were rolled out to the Mustang Mach-E in 2021. As successful as the Mustang Mach-E has been for Ford, the F-150 Lightning is on another level with hundreds of thousands of reservations, and unruly dealer markups souring its reputation to some. 

The Limitations of Ford’s OTA Updates

To date, Ford has demonstrated its ability to send software over-the-air updates to its electric vehicles. Software OTA fixes are not as transformative as the firmware OTA fixes that Tesla has implemented. On numerous occasions, Tesla has sent OTA updates that addressed aspects of charging, acceleration, efficiency and range. We’ve yet to see Ford implement firmware OTA updates, but the automaker claims that Blue Oval Intelligence will be capable of doing so when the need arises.

OTA Updates Coming to Other Automakers

Silverado EV
2024 Chevrolet Silverado EV RST

In 2022, just about every automaker claims to be bringing over-the-air updates to their future lineups. General Motors was an early pioneer of OTA updates, having tried it out with OnStar way back in 2009. The second generation of GM’s OTA updates was launched in 2019 as Vehicle Intelligence Platform (VIP). VIP now enables OTA updates for nearly every vehicle control module, not just infotainment. GM’s latest software platform is advancing OTA update capability to new heights. Ultifi is designed to provide more frequent OTA updates, similar to how Tesla owners are accustomed to. 

Other legacy automakers are a bit behind the curve. The likes of Hyundai, Honda, BMW, Mercedes-Benz and Volkswagen group are all offering OTA updates for infotainment and navigation, but not much else at the moment. Electrek has a great breakdown of each automaker’s plans for OTA updates.

Chinese automaker NIO is reportedly planning to enter the American market with several OTA-capable models. NIO’s over-the-air update capabilities are second only to Tesla, with firmware-updates proven in the automaker’s overseas markets. NIO is more widely known for their battery swapping stations, which replace the need to wait around for a charge. Learn more about NIO coming to America.

Is the F-150 Lightning Still a Good Buy?

2023 F150 Lightning
2022 Ford F-150 Lightning Platinum

With up to 320 miles of range, decent charging speeds, powerful towing capabilities and the option of using the truck’s battery as a home generator, there’s a lot to love about the F-150 Lightning. What we don’t love are the dealer markups that have been making headlines for all the wrong reasons. Is the F-150 Lightning a great deal at $40,000 to $90,000? Certainly. When dealers start adding $50,000 markups to this truck, it’s not doing the EV movement any favors. 

Learn more about the F-150 Lightning’s specs and pricing.

Looking to buy? See nationwide dealer listings for the F-150 Lightning at CarEdge Car Search.

Let us know what you think. Is the F-150 Lightning comparable to a Tesla, or is it too early in the game to make such bold claims? How much would you pay for an electric work truck? Are EV incentives enough for you to make the switch? Let us know! 

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