In 2020, electric vehicle (EV) sales accounted for 2% of all U.S. vehicle sales. That’s a big number,” because about 19 million cars are sold in the U.S. every year, but it’s still a tiny fraction of the overall market.
Of course, EV sales have grown, led by Tesla (TSLA) – Get Tesla Inc report By 2021, annual global sales will reach around 1 million units. Other pure electric vehicle industries still have a long way to go.sober (LCID) – Get Lucid Group, Inc. Report and Rivian (RIVN) – Get Rivian Automotive, Inc. Class A Report There is still a long way to go to reach the goal of delivering tens of thousands of vehicles a year, let alone close to a million.
Of course, Ford (F) – Get Ford Motor Company ReportGeneral Motors (GM) – Get General Motors Corporation Report, while the rest of the traditional auto industry has huge plans for its own EV sales.Ultimately, EVs will dominate the market, but it will be at least a few years (or possibly longer), but EV growth and Starbucks will face huge hurdles (SBUX) – Get the Starbucks Corporation Report can fix it.
Electric cars need to be charged
According to the American Petroleum Institute, there are more than 150,000 gas stations in the United States.
That’s a huge number, and as anyone who’s ever driven a car knows, it’s extremely rare to have a hard time finding a gas station. Even the very rural areas of the country have enough gas stations to fill up almost anywhere, so running out of gas isn’t a major issue.
Electric vehicles need charging stations, and the US doesn’t have enough of them. This is what President Joe Biden wants to change.
In December 2021, U.S. Secretary of Energy Jennifer M. Granholm and U.S. Secretary of Transportation Pete Buttigieg signed a memorandum of understanding to establish a joint office on energy and transportation to Support the deployment of $7.5 billion in the President’s bipartisan infrastructure law to create a nationwide electric vehicle charging network.
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This sounds good, but the government is slow to move, and the US government is very divided. Biden’s Democrats could lose control of Congress once the midterms are elected, and recent history suggests that the bipartisan divide will lead to the creation of something as broad as a national network of electric vehicle chargers (albeit with a memorandum of understanding).
Starbucks can solve charging problems for Tesla and the electric car industry
Charging an electric car takes time. This time varies widely depending on the type of charger and the vehicle being charged. But if you assume a universal charging station (rather than one of Tesla’s dedicated Superchargers), it’s anywhere from 20 minutes to an hour.
Imagine being able to pull up the charger and walk into Starbucks, grab a cup of coffee, eat something, and maybe go to the toilet. It’s a vision that the coffee chain actually shares, unveiling its plans at its annual investor day.
“Starting this summer, Volvo EV chargers powered by ChargePoint will be available at up to 15 Starbucks stores along the 1,350-mile route from the Colorado Rockies to the Starbucks Support Center (headquarters) in Seattle,” the company said in a statement. shared in a statement. Press release.
While those numbers are small, Starbucks has more than 16,000 stores in the U.S.—many in areas where chargers can be added.
“We know that infrastructure is the main reason customers hesitate or decide not to buy an electric vehicle. By providing charging infrastructure customers can trust, we hope to remove this barrier, while still getting the Additional benefits. Wait,” the company added.
Electric vehicle charging may be a source of revenue for Starbucks, but the chain is more likely to use it to drive customer traffic and sales. This is very similar to the gas station/convenience store model, where gasoline is actually a low-margin product. Starbucks can build a charging network relatively quickly, which is good for the coffee chain and for Rivian, Lucid, Ford, General Motors, and anyone else in the EV space.