Futureproof vs Stupid

At the Manhattan Contrarian, Francis Menton talks of the rapid decline in sales in the EV market. Overall, he writes, “the EV market has been propped up by government subsidies and benefits and, like all businesses dependent on government handouts, would likely shrink drastically (if not completely disappear) without them.”

Yesterday, the NYT handed over a major chunk of its editorial page to Bill Saporito. Saporito’s headline: “$25 Billion. That’s What Trump Cost Detroit.” 

Saporito looks upon EVs as wondrous products and that American EVs would be conquering the world, and earning big profits for the automakers, but for a “war” against EVs instigated by President Donald Trump.

Bill Saporito, in case you are wondering, is a well-known business journalist. Some of you might recognize his name from articles in Fortune, Inc. He has also been assistant managing editor of Time, where he was also in charge of both business and sports. Could it be that it is Saporito, wonders Mr. Menton, who is running the Time, Inc. enterprise to the ground?

Well, moving on, let’s ask Mr. Saporito his take on EVs. According to Saporito, the recent massive write-downs of investments in EVs by Ford ($19.5 billion) and GM ($6 billion) have been caused by “President Trump’s gratuitous war against electric vehicles,” which “is forcing manufacturers to return to an increasingly outdated past.” 

The CEOs of those companies have been trying to make all the right moves to “futureproof” their enterprises in shifting marketplaces. As Saporito maintains, “it is pretty difficult to futureproof your company against stupid.” 

EVs are an “obviously beneficial” technology, continues Saporito. Trump’s war on them is motivated by some combination of vindictiveness, spite, and ignorance of the importance of “climate change.” In short, “stupid.

”Mr. Trump’s efforts to undermine an obviously beneficial technology, adds Sa[orito, is something that, as far as he can tell, no large American company previously encountered. . . .

Mr. Menton points out that one big reason for Mr. Trump’s rejection of E.Vs is simple: President Joe Biden championed them as his administration pushed greener forms of transportation and energy. . . .

According to Saporito… 

The vindictive, oil-loving Mr. Trump, who equates green with woke and views climate change as heresy, has worked assiduously to undo it, working to cancel consumer tax incentives and billions in funds for E.V. charging and battery manufacturing projects. 

For his part, Francis Menton notes (1) the extremely harsh language directed at Donald Trump and (2) how Saporito doesn’t mention that anything that the supposed “war” consists of beyond the withdrawal of previous subsidies and tax credits. Since when, asks Mr. Menton, is a business entitled to subsidies and tax credits?

Outside social welfare fields like education and health care, nearly all businesses operate without government handouts. Is the government conducting a “war” against people who make computers, or who build houses, by not offering them subsidies and tax credits?

In short, BYD’s net profit fell by nearly one-third in the first three quarters of 2025, while its debt burden surged several-fold. Although BYD still ranked first in China’s new-energy vehicle market with retail sales of 307,000 units in November 2025, year-on-year sales dropped sharply by 26.5 percent.

China’s War on EVs? 

It seems as if China is also withdrawing subsidies and tax credits for purchases of EVs. 

With government trade-in subsidies being reduced or suspended and the halving of new-energy vehicle purchase tax incentives set for next year, consumer willingness to buy cars has weakened or been postponed.

From fellow blogger “Cold-Eyed Blogger” on the subject of the Chinese EV manufacturing sector:

“China’s electric vehicle industry has no easy way out. Overcapacity is the core problem. Manufacturers are locked in vicious internal competition, slashing prices and costs. The result is mounting losses while production continues. 

After this phase, it will be a test of endurance—and many won’t last. A wave of bankruptcies in China’s EV sector is likely to accelerate.”

What Form of Stupid

As the final crushing piece of evidence to prove his case that rushing to EVs is “obviously beneficial,” Saporito cites the apparent success of Chinese EV champion BYD, “They are leaving us in their dust!”

Our Manhattan Contrarian suggests to Mr. Saporito that it might take a bit more analysis to figure out what the “stupid” policies are here.