262: Preamble to the Preamble
About this episode
A deep dive into the current energy landscape highlights rising oil prices amid Middle East tensions and their ripple effects on the economy and EV interest. The hosts analyze geopolitical factors influencing oil supply, the irony of US energy leadership tied to fracking exports, and the potential for $200-a-barrel oil. They discuss how these dynamics could drive EV demand, referencing recent spikes in EV searches and the mixed fortunes of automakers like Honda, Volvo, Lucid, and Toyota. Toyota’s cautious but potentially winning EV strategy stands out as the market faces uncertainty and shifting consumer behavior.
With war raging and oil becoming scarce, what does this mean for EV adoption in the short and long term? Is this a tipping point for the EV industry? We ponder several possible outcomes. We also contrast Honda’s EV strategy with Toyota’s, and consider whether Lucid and Rivian matter in a world gone mad.
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SHOW NOTES
National average for diesel tops $5: https://www.cnbc.com/2026/03/17/diesel-gas-oil-price-iran-war-hormuz.html
Car shoppers are paying more attention to EVs as gas prices rise: https://www.edmunds.com/car-news/electrified-vehicle-research-gas-prices-data.html
Honda cancels its three EVs, the 0 SUV, 0 sedan, and Acura RSX EV: https://arstechnica.com/cars/2026/03/facing-heavy-losses-honda-cancels-its-three-us-made-electric-vehicles/
Volvo drops EX30 for the U.S. market: https://www.thedrive.com/news/the-volvo-ex30-is-dead-in-the-us-exclusive
Lucid announces Earth, Cosmos, un-named midsize SUV: https://insideevs.com/news/789809/lucid-cosmos-earth-ev-suv-official/
Rivian announces R2 pricing: https://electrek.co/2026/03/12/rivian-reveals-full-r2-lineup-pricing-rwd-model/
Trump orders restart of Santa Barbara oil pipeline off coast: https://calmatters.org/environment/2026/03/trump-emergency-sable-santa-barbara/
This week’s hosts: Phil Royle and Edward A. Sanchez
Episode art courtesy Lucid Motors
Music courtesy Twisterium at Pixabay
Website: https://www.thewattcar.com
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Edmunds
"So this is a report from Edmonds. So this is new car or I'm assuming new car searches."
Edmunds is a website that helps people learn about cars and find good deals. They also watch what kinds of cars people are looking for.
Edmunds is a well-known automotive website that provides car buyers with pricing information, reviews, and market trends. They track data such as new car searches to analyze consumer interest.
hybrids
"...the site activity shows hybrids, plug-in hybrids and EVs accounted for 22.4 of all vehicle research activity on Edmonds the week..."
A hybrid car uses both a gas engine and an electric motor to help save fuel and pollute less. It can use one or both to move the car.
Hybrids are vehicles that combine an internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions. They can switch between or combine power sources depending on driving conditions.
EVs
"...the site activity shows hybrids, plug-in hybrids and EVs accounted for 22.4 of all vehicle research activity on Edmonds the week..."
Electric vehicles, or EVs, are cars that run only on electricity instead of gas. You charge them by plugging them in, and they don't produce exhaust smoke.
EVs, or electric vehicles, are cars powered entirely by electricity stored in batteries. They produce zero tailpipe emissions and are charged via external electrical sources.
dependence on oil
"...what I'm not hearing from this administration or really anyone to a large extent is that the current geopolitical situation is exactly why we should reduce our dependence on oil."
Dependence on oil means how much we need oil to power our cars and machines. If we rely too much on it, problems like wars or price changes can cause big issues for everyone.
Dependence on oil refers to how much a country or economy relies on oil for energy, transportation, and industrial needs. Reducing this dependence is important for energy security, economic stability, and environmental reasons, especially given geopolitical risks affecting oil supply and prices.
renewables
"...why is America not saying, man, we need to start investing now in renewables."
Renewables are types of energy that come from nature and don’t run out, like sunlight and wind. Using them means we don’t have to use as much oil or gas, which is better for the planet.
Renewables are energy sources that are naturally replenished, such as solar, wind, hydroelectric, and geothermal power. Investing in renewables helps reduce reliance on fossil fuels like oil and lowers carbon emissions contributing to climate change.
Nissan Leaf
""...weren't mainstream, they weren't like Tesla or the Leaf or anything. That's when you started seeing these kind of niche EVs in the 70s.""
The Nissan Leaf is an electric car that runs on batteries and doesn't use gas. It was one of the first electric cars many people could buy.
The Nissan Leaf is one of the first mass-market electric vehicles introduced in the 2010s. It is a compact hatchback designed for urban and suburban use with a fully electric powertrain.
WTI
""...there's two indexes. There's WTI and Brent. Brent's a little over a hundred. I think it closed today, 102 something.""
WTI is a type of oil that people use to figure out how much oil costs in the US. It helps set prices for buying and selling oil.
WTI stands for West Texas Intermediate, a grade of crude oil used as a benchmark in oil pricing. It is a key indicator of oil prices in the United States.
Brent crude
""Brent's a little over a hundred. I think it closed today, 102 something. Brent is like 96. So we're about a hundred bucks a barrel right now.""
Brent crude is a type of oil that helps decide the price of oil in many parts of the world. It is used like a standard to compare other oils.
Brent crude is a major trading classification of sweet light crude oil that serves as a benchmark price for purchases of oil worldwide, especially in Europe and other global markets.
fracking
""...Secretary of Energy, former CEO of Liberty Energy, North America's second largest fracking company.""
Fracking is a way to get oil and gas out of the ground by breaking rocks underground using water and chemicals. It helps get more fuel for cars and other uses.
Fracking, or hydraulic fracturing, is a method of extracting oil and natural gas from underground rock formations by injecting high-pressure fluid to create fractures. It has significantly increased North American oil production.
light sweet crude
"It's the light sweet, not the heavy crude. And we use the heavy crude here and we refine the heavy crude, not the light sweet."
Light sweet crude is a kind of oil that's easier to turn into fuel because it's lighter and cleaner than other types of oil.
Light sweet crude is a type of crude oil that is low in density (light) and has low sulfur content (sweet). It is easier and cheaper to refine into gasoline and other products compared to heavier, sour crude oils.
heavy crude
"And we use the heavy crude here and we refine the heavy crude, not the light sweet. So he's our secretary of energy and his whole business is selling to foreign countries,"
Heavy crude is a thicker, dirtier kind of oil that is harder to change into fuel, but some refineries in the U.S. are set up to use it.
Heavy crude is a denser and more sulfur-rich type of crude oil that is harder and more expensive to refine than light sweet crude. It is often used domestically in refineries that are equipped to handle its characteristics.
diesel
"So here's another kind of domino effect to all this is the national average for diesel, I guess, as of today, as the day we're recording this top to $5 a gallon... Basically 100% of land freight is effectively diesel."
Diesel is a kind of fuel that big trucks use to move things around. It's important because almost all big trucks run on diesel to carry stuff to stores and homes.
Diesel is a type of fuel used primarily in heavy-duty vehicles like trucks and buses due to its energy density and efficiency. It powers most land freight trucks, making it critical to the transportation of goods.
EV
"People are beginning to search more for EVs for purchasing new ones. That's great. I mean, that's kind of what the show's all about."
An EV is a car that runs on electricity instead of gas. It helps keep the air cleaner and is becoming more common to buy.
EV stands for Electric Vehicle, which is a car powered entirely or partially by electricity instead of traditional gasoline or diesel fuel. EVs produce zero tailpipe emissions and are becoming increasingly popular as a cleaner alternative to internal combustion engine vehicles.
Acura RSX
"...hey had three EVs on the table. One, I think the RSX was already out, wasn't it? Because I run by one..."
The Acura RSX is a small sporty car made by Acura. It was made about 20 years ago and is known for being fun to drive.
The Acura RSX is a sporty compact coupe produced by Acura in the early 2000s, known for its engaging driving dynamics and reliability. It is not an electric vehicle but may be mentioned in discussions contrasting older sporty models with modern EVs. The RSX has a strong enthusiast following.
Ford Edge
"...sedan and the zero SUV that were at least cutting edge as far as design goes, exterior design visually."
The Ford Edge is a medium-sized SUV made by Ford. It is designed to carry families and has a comfortable ride.
The Ford Edge is a midsize SUV known for its comfortable ride and modern design. It is a gasoline-powered vehicle often noted for its styling and utility. Its mention in the podcast likely relates to design trends or comparisons with newer electric SUVs.
800 volt architecture
"They did confirm 800 volt architecture. Um, what kind of got my attention is the relatively small battery pack."
Some electric cars use a system called 800 volt architecture, which helps them charge faster and work more efficiently. It means the car's electrical system runs at a higher voltage than usual.
An 800 volt electrical architecture in electric vehicles allows for faster charging times and improved efficiency compared to the more common 400 volt systems. It supports higher power transfer with less heat generation and thinner cables.
kilowatt hours
"Um, 69 kilowatt hours, which for mainstream EVs, it's smallish. It's not tiny, but it's, I'd say most kind of mid-size or larger EVs now, I would say are in the 70 to 80, something up to like 90 kilowatt hours. So 69 kilowatt hours is on the smaller side,"
Kilowatt hours tell you how much energy a car's battery can hold. The bigger the number, the farther the car can usually go before needing to recharge.
Kilowatt hours (kWh) measure the energy capacity of an electric vehicle's battery. A higher kWh rating generally means a longer driving range, as it indicates more stored electrical energy.
coefficient of drag
"They said part of it is the coefficient of drag of 0.22, which is pretty slick. That's one of the lowest on the market right now."
Coefficient of drag is a way to measure how easily a car moves through the air. The smaller the number, the easier it is for the car to drive without using too much energy.
The coefficient of drag (Cd) is a number that represents how aerodynamic a vehicle is. A lower Cd means the car faces less air resistance, improving efficiency and range, especially important for electric vehicles.
mono screen
"So Tesla kind of, you know, they went with the kind of the mono, mono screen and like the Model 3 and the Model Y, where it's just a big, you know, central kind of rectangular display."
A mono screen is one big screen inside the car that shows all the important information and controls, instead of having separate screens.
A mono screen refers to a single large touchscreen display in a car's interior that combines multiple functions like instrument cluster and infotainment into one unit, as seen in Tesla Model 3 and Model Y.
cost reduction
"I'm not 100% sure what I think of it, but I think the takeaway from this is they're really looking at cost reduction. And so Lucid actually hired, I don't know if you remember this, from Monroe and Associates,"
Cost reduction means finding ways to make cars cheaper to build so they can sell for less money or make more profit.
Cost reduction in automotive manufacturing involves strategies to streamline production, minimize components, and reduce expenses to make vehicles more affordable and profitable.
adding lightness
"You go back to Lotus and how they got famous with Colin Chapman adding lightness. Add lightness, yeah."
Adding lightness means making a car lighter so it can go faster and use less energy. It’s like carrying a lighter backpack to run faster.
Adding lightness is a design philosophy popularized by Lotus founder Colin Chapman, emphasizing reducing vehicle weight to improve performance, efficiency, and handling. This approach is often contrasted with adding complexity or power to achieve better results.
crank windows
"like look at Slate, they got crank windows. But that's where we're at now is adding simplicity to try to drive these prices down because everything's just out of control."
Crank windows are old-style car windows that you open and close by turning a handle by hand, not with buttons.
Crank windows are manually operated car windows that use a hand crank to raise or lower the glass, as opposed to power windows operated by electric switches. They are simpler and cheaper but less convenient.
Lucid Air
"So good on Lucid. I just hope people care about Lucid. Nobody seems to care about them. Which is a shame because I think, you know, from a technical and engineering standpoint, they're really impressive cars."
The Lucid Air is a fancy electric car that can go a long way on a single charge and is made by a company called Lucid.
The Lucid Air is a luxury electric sedan produced by Lucid Motors, known for its advanced engineering, long electric range, and high performance. It competes with other premium electric vehicles in the market.
Tesla
"And he didn't have a Tesla before. He had gas power vehicles and more. So they're still. Receiver advantage."
Tesla makes electric cars and has special fast chargers called Superchargers that help you charge your car quickly on long trips.
Tesla is a leading American electric vehicle manufacturer known for its innovative EV technology and extensive Supercharger network, which provides fast charging for Tesla vehicles.
performance all-wheel drive
"So they're leading with the performance all-wheel drive. That's going to be about $58,000."
Performance all-wheel drive means the car sends power to all four wheels to help it go faster and handle better, especially when driving fast or on slippery roads.
Performance all-wheel drive refers to an electric vehicle drivetrain setup that powers all four wheels for improved traction and acceleration, optimized for sporty driving characteristics.
zero to 60
"Zero to 60 is like three points something. So, you know, quick, powerful."
Zero to 60 means how fast a car can go from stopped to 60 miles per hour. It shows how quick the car is when starting to move fast.
Zero to 60 time measures how quickly a car can accelerate from a standstill to 60 miles per hour. It's a common performance metric to gauge a vehicle's acceleration capability.
rear-wheel drive
"Standard rear-wheel drive long range, early 2027. That one for about 485. And standard rear-wheel drive."
Rear-wheel drive means the car's engine sends power just to the back wheels, which can make the car feel sportier to drive.
Rear-wheel drive (RWD) is a drivetrain layout where the engine powers the rear wheels only. It often provides balanced handling and is common in performance and luxury cars.
tri-motor
"There was some speculation that a tri-motor version would be offered at some point. A lot of people are thinking that will be the rad model."
Tri-motor means the electric car has three motors that help it go faster and handle better by powering more wheels.
A tri-motor setup in electric vehicles uses three electric motors to drive the wheels, often providing higher power output and improved traction compared to single or dual-motor configurations.
Honda
"The company that is the most interesting that, while you've got Honda getting rid of EVs, you've got,"
Honda is a big car company from Japan that makes cars and motorcycles. They are changing which electric cars they sell.
Honda is a major Japanese automotive manufacturer known for producing reliable cars, motorcycles, and increasingly electric vehicles. The company has recently been adjusting its EV lineup.
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