{"id":47732,"date":"2023-04-19T09:03:23","date_gmt":"2023-04-19T13:03:23","guid":{"rendered":"https:\/\/autosector.com\/?p=47732"},"modified":"2023-04-19T09:03:23","modified_gmt":"2023-04-19T13:03:23","slug":"tesla-other-ev-makers-disrput-agricultural-market","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=47732","title":{"rendered":"Tesla And Other EV Makers Could Disrupt US Agricultural Market"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs<\/a>, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on April 19, 2023,\u00a0by<\/span>\u00a0Peter McGuthrie<\/p>\n

With electric vehicles gaining traction in the U.S. automotive market, some analysts are wondering if Tesla<\/a>\u00a0and other EV makers could significantly disrupt the demand for corn. For agricultural machinery manufacturers like John Deere, this could spell trouble for the future of ethanol \u2014\u00a0especially given the latest climate targets in the U.S.<\/p>\n

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Above: A Tesla Model 3 (Image:\u00a0Casey Murphy<\/a>\u00a0\/ EVANNEX).<\/em><\/p>\n

Deere could be threatened by weakening corn and ethanol demand in the coming decades, as climate goals prioritizing EVs continue to gain popularity, according to a report from\u00a0Barron\u2019s<\/em><\/a>. While Tesla and major automakers pivoting toward an EV future aren\u2019t specifically targeting Deere or ethanol demand with their business strategies, a decreasing need for the fuel seems a likely outcome of U.S. goals for EV adoption.<\/p>\n

In recent weeks, President Joe Biden and the Environmental Protection Agency put forward a proposal to require two-thirds of new car sales to be electric by 2032. If enacted, the goal would forecast a rough annual sales target of 10 to 11 million EVs sold annually by the same year.<\/p>\n

The U.S. produces around a third of the global corn supply, amounting to about 15 billion bushels or 380 million metric tons per year, according to\u00a0Barron\u2019s<\/em>. Crucially, the outlet also notes that over 40 percent of the corn crop in the U.S. is used for ethanol production.<\/p>\n

Ethanol is produced by mixing corn crops with gasoline, and climate goals in the U.S. favoring EVs pose a major threat to the fuel\u2019s demand, according to some. In a recent report, D.A. Davidson analyst Michael Shlisky pointed out the relationship between increasing EV sales and the overall need for ethanol products.<\/p>\n

\u201cThis week\u2019s new EPA greenhouse gas rules for cars almost mandate a much faster EV adoption curve than many thought,\u201d Shlisky said. The \u201cregulatory and political changes skew negative for ethanol.\u201d<\/p>\n

Along with the newly proposed target, U.S. states including California, New York and Oregon (and countries beyond the U.S.) have moved to ban the sale of new gas cars by 2035. Additionally, legacy automakers including Ford, General Motors and several others have followed in Tesla\u2019s footsteps,\u00a0pivoting toward EVs<\/a>\u00a0with huge investments in the sector.<\/p>\n

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To be sure, Deere could do the same as legacy automakers by shifting toward electrification, or it could work with Tesla or any of these other OEMs on electric equipment. The company is also likely to be decades away from the ethanol supply being seriously affected by the new EV rules, and Shlisky is optimistic about the company\u2019s ability to adjust.<\/p>\n

\u201cDeere is by no means doomed,\u201d Shlisky added. \u201cA company does not stay in business for over 180 years if it is not able to adapt to the times.\u201d<\/p>\n

Source:\u00a0Barron\u2019s<\/em><\/a><\/p>\n

===<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-47732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47732"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47732"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}