Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 940

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 940
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 indirectly hindering import markets. ____________ 6IBISWorld Industry Report OD5146, Hybrid and Electric Vehicle Manufacturing, January 2024. Annex D-2-6 •The Infrastructure Investment and Jobs Act (IIJA) also provides funding for new charging stations nationwide, making EVs and PHEVs more accessible to the public. This move addresses a crucial issue that consumers have voiced regarding EVs: the availability of charging stations. Manufacturers attempt to make electric vehicles more accessible to the public •High oil and gas prices throughout 2023 have made owning and operating traditional cars more expensive for consumers. Even so, the upfront cost of an electric or plug-in hybrid vehicle remains prohibitive for many buyers. •Cox Automotive reported that EV prices fell more than 22.0% between September 2022 and 2023. However, these prices remain more than 28.0% above average gas-powered automobiles. Regardless, these price declines have increased market reach. •Similarly, a 2020 Consumer Reports study highlighted that EVs cost 60.0% less on fuel each year compared with gas-powered cars. Similarly, The US Department of Energy states that current EVs are 2.6 to 4.8 times more efficient per mile. These cost savings have encouraged consumers to purchase electric and hybrid vehicles despite the generally higher price tags. •Government incentives also bolster competition, keeping the price of battery packs on a downward trajectory while improving fuel efficiency. The EVs4ALL program constantly researches new batteries that reduce emissions and charge more efficiently, making EVs more accessible and affordable to US buyers. Input price volatility has posed a major threat to manufacturers •Commodity prices, like oil, gas, steel, aluminum, rubber and semiconductors, play significant roles in the pricing and demand for cars and automobiles. Steel and aluminum prices have climbed to historic levels following the pandemic – many automakers have passed these costs onto buyers but risk pricing out certain consumers. •Semiconductor shortages have also slammed automakers. These shortages forced companies to slash production as they waited for key components, leading to automobile demand wholly eclipsing supply. •These trends have caused major profit fluctuations. Larger companies managed to leverage diversified portfolios to weather poor conditions, but smaller companies and start-ups have struggled to generate returns. Union strikes have impacted automakers •Most auto workers are union members. The 2023 United Auto Workers (UAW) strike has led to climbing wage costs and major layoffs as companies attempt to meet greater compensation and workplace demands