PLEASE NOTE: I do not give advice for investments and this is not a recommendation or advertisement or solicitation. This post and all posts and videos on my Real Hot Stock Tips are my opinions only and for information and entertainment purposes. Please contact your licensed investment professional before making investments and do your due diligence. The EPA new standards for model years 2027-2032 have been published.  Those critics on the no side state some opinions that should be noted mentioning that quite possibly the standards are rules that the internal-combustion-vehicle could never satisfy.  Other critics say that compliance would compel 67 percent of light-duty vehicles and 46 percent of medium-duty vehicles to be only EV battery model vehicles.  Furthermore some critics say that the cost of obtaining the minerals needed to make one EV battery contribute as much carbon dioxide as a fossil fuel burning vehicle therefore making the transition zero sum game. .  To obtain the minerals necessary to produce a single (EV) battery requires mining about 250 tons of rock.  Between 8 and 20 tons of carbon dioxide are emitted during the production of each EV.  If battery production becomes even more energy intensive as mining shifts to lower grade ores, EV’s could emit more carbon dioxide over their full lifespan than do conventional vehicles.

On the Pro Stricter Emissions side many scientists and experts say emissions control is vitally important and state that there is a 50% chance of a 1.5 C increase in global temperature within 9 years if global emissions are not reduced.

Global Carbon Project comments that “there is an urgent and sustained need to cut our emissions to stabilise the global climate and reduce cascading risks.”

Regardless of what side of the coin you believe in, the EPA has plenty of research and other global and national organizations to back up their policy to cut emissions.  This policy will affect the auto industry in a huge manner and as an investor or interested individual it is important to know the direction here in the US that the EPA mandates.

The questions raised are; “Can the US consumer afford EV’s and what will happen to all the workers in the auto industries from manufacturing to auto repair if the combustable engine becomes a thing of the past?”  Where will these workers find good paying jobs and how will that affect the GDP of the US Economy as well as the economic health of the individuals.  This is just one area as economists we have to consider.  Stock prices of auto companies may struggle to stay strong during the next few years as they try to comply with the EPA and also sell cars to consumers.  Time will tell, but stay tuned here at Real Hot Stock Tips and I will update you as we move along in 2024.