Why Tire Companies Love EVs

The tire business can be a brutal one - low growth, low margins and extreme competition. Tire makers are at the mercy of ups and downs of raw material prices. About half of customers are largely indifferent to the brand of tires they buy. Price is the main differentiator. But industry analysts say the rise of EVs provides tire makers with the biggest growth opportunity they have seen in decades. AlixPartners estimates that tires on EVs can cost 50 percent more and require replacement 20 percent more frequently. Watch the video above to learn more.

Chapters:
00:00 - 01:16 Title card - Why tire companies love EVs
01:23 Chapter 1 - A tough business
03:37 Chapter 2 - EV revolution
09:31 Chapter 3 - The potential

Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Audi, Chevrolet, Continental, Ford Getty Images, GMC, Kia Michelin, Polestar, Porsche, Rivian, Tesla, Volkswagen

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Why Tire Companies Love EVs

[Comeback]

When I saw the title I knew it was gonna talk about replace more often to help elevate tire companies profits.

[youtubewatcher]

0:53 Video: EV tires cost 50% more and need to be changed 20% more often.
Summary text: "...tires on EVs can cost 20 percent more and require replacement 50 percent more frequently."

Edit: I see the summary text has been changed to be consistent with the clip; thank you.

[eviladmn]

Regenerative braking isn't going to wear the rows any more than friction brakes. Both are absorbing the same energy. Claiming regen braking wears tires faster is nonsense.

[Mengayang]

On the bright side, you don't have to replace the brakes through out the life of the vehicle. When I work at the Toyota dealership I would see Prius with over 250k miles come in for oil changes, you perform your regular inspection and realize it still has factory pads with 14 mm remaining.

[SkittyDoogle]

Here's one technical thing they overlooked:
Every vehicle has alignment specs from the factory. EVs are no different. Specifically for the Tesla Model S, it has a rear camber spec of -1.5 degrees with 1 degree tolerance, meaning up to -2.5 is still in spec. The rear wheels are slanted inward for stability. The further it's slanted inward means more wear. Combined with instant, very high levels of torque and a very heavy curb weight, it's no wonder they shred through tires.

[Tokamak.]

Anybody getting only 15K miles in a Tesla (or Hyundai/Kia, Audi, Porsche) would also only get 15K miles if you put them in a Ford Mustang GT. That's owner behavior. Set the acceleration to "Chill" mode in a Tesla and you won't be chirping at every green light, or just behave yourself with the throttle. But that's like telling people to control themselves at an All-You-Can-Eat buffet.

[Ekuahx]

My Polestar 2 is 2 years old now, driven 50 000km and the tires look like new. People who need to replace their tires at 15000 miles need to seriously buy better quality tires.

[shenmisheshou]

Low tire noise is at the top of my list for things I look for when buying tires. I did this even before getting a plug in hybrid (I rarely use the gas engine). Even in my sports cars, I leaned toward quiet tires. Many people do not realize how much noise a tire can generate.

[MC-nyiw]

having driven almost 20k miles, my Model Y hasn't shown any signs of needing a replacement. It's worth noting that driving style plays a critical role in the longevity of tires. If one drives the vehicle recklessly, whether it's an ICE or an electric vehicle, it's likely to have a shorter the tires lifespan. On the other hand, if you're a mature and cautious driver who avoids risky behavior on the road, your tires might need to be replaced earlier that in a ICE car, but 12k miles? Seriously?. It's important to remember that some of the claims surrounding EVs are exaggerated for good or bad.

[thesadboxman]

10:32 Guy states that Tesla vehicle requires tire replacement every 15k miles, but this is completely false. You can google yourself and find that typical tire replacement for the OEM tires happens at above 40k miles.

[myfiller]

My ‘22 Model 3 Performance tires still look great with 28K miles on them and I drive that car like I stole it because I am always late lol. I had to recently replace the tires on my first EV, a 2017 Bolt after 60K miles. The new tires for the Bolt were rated very high for EVs and cost less than most tires I ever priced at $89 per tire….I was blown away when I got the estimate because that is here in California! I had a 2010 Prius before the Bolt and could never get more than 30K out of any tires on it. I love EVs and will never go back

[vkihoeo]

The original OEM tires on my 2017 Bolt EV lasted 50, 000 miles and I could have gone longer. That vehicle has been trouble free for 65K miles and a real joy to drive. As far as range, it's been petty amazing especially after it was recalled and a brand new higher capacity battery was installed after 58K miles. The new battery is only rated for 259 miles of range but if I drive it in Low range to get more regenerative braking for one pedal driving, I can often get well over 270 miles of range.
Also own a 2023 Tesla Model Y LR AWD with a little over 10, 000 miles on it. I just rotated the tires with no evidence of any wear yet. But I keep it is Chill mode and try to keep the tires slightly under inflated at 40psi when cold. The Tesla is light years ahead of the Bolt in so many ways and we use it mainly for weekly trips to our country farm. I also have a gas pickup that gets very little use anymore because a gas vehicle is so much more costly to maintain and drive. For example, it cost me between $25 and $30 to charge my Tesla with an L2 charger to go on average approx. 850 miles per month. I use a time of day meter and try to charge it during off peak hours to get a reduced rate. If I drove my pickup for a month for 850 miles, it would cost a minimum $168 at my current local gas price of $3.55/gal.  
Based on my experience, an EV is not only much more pleasurable to drive but a whole lot easier to maintain.
As far as insurance, I pay $100 per month for Tesla insurance on my model Y as long as I maintain a good safety score. In summary, don't believe all of the negative crap that you read on line concerning EVs. Big Oil has an order of magnitude more money to spread EV negativity and they are the ones who stand to lose the most as EVs become more popular.

[wreakr]

Interesting that the Managing director of a Research company that focus on investors are telling us that EV tires must be replaced at 15K miles. When the tire manufacturers themselves, the ones that stem from benefiting from us doing it more often say it is giving 4x that amount of miles in warranty.

[kiljaehwang]

I drive an 80, 000-pound semi-truck. At 230, 000 miles, the tire tread on my truck is still good and I believe it can still run for another 100, 000 miles without a problem.

[clintatk]

CNBC, you do realize that nearly every news story you do about EVs, Tesla in particular, is something you can spin as a negative. Why could that be?

[Souchirouu]

Can we finally start including the recycling cost of products with the people that make them as well?
Doing so will push car manufactures to focus on making cars less heavy and optimize more to avoid wear and tear.
I honestly think it just makes sense that if you make a product you should be responsible for its entire life cycle including when it becomes non-functioning.

[memeguyTM]

Here I am driving a Renault Clio 4 and I changed my tires for the first time after driving 152 000 kilometres. 🎉

[Tyrial]

I just replaced the OEM Hankook Evo3 tyres on my Model 3 at 90, 000km, or 55, 900 miles. The replacement set cost $920, no more expensive than any other quality 235/40R19 tyre used on many ICEV's.

My previous car was a Prius, and I could not get more than 80k kms out of a set doing the exact same commute.

[petergosney]

Driving style makes a massive difference in a Tesla. If you drive a Tesla like it’s a Subaru WRX, you’ll get similar results to a WRX. if you don’t care about road noise, just fit long-range tires.

[outrightfoot]

Not gonna lie CNBC is the only news place I’d subscribe to. These videos are so quality