Technology & Market Trends Explored
Electric Vehicle prices have been trending down recently, all signs indicating that EV prices could soon compete with gasoline vehicles.
With electric vehicle prices falling as they become easier and cheaper to produce, the price of purchasing a new EV could soon be equivalent to that of a new gasoline-powered vehicle, the New York Times reports.
Tesla, General Motors, and Ford Motor Company, as well as their battery suppliers, plan on accelerating their output from new factories, and with Volkswagen, Nissan, and Hyundai also getting in on producing EVs, there is added competition as well.
GM’s Equinox crossover will start “at around $30,000” when it debuts later this year, only $3,400 more than the least expensive gasoline-fueled Equinox, and, as the New York Times points out, “factoring in government incentives, the electric Equinox should be cheaper.”
According to Kelley Blue Book, at the end of 2022, the average price for all passenger cars and trucks was $49,507, with EVs averaging $61,488, and prices for EVs have been trending down since Tesla cut prices for the Model 3 and Model Y in January. Ford also cut prices for the Mustang Mach-E, “the bestselling electric vehicle in the United States after the Teslas.”
The Inflation Reduction Act passed last year is a big reason for prices falling. Up to $7,500 worth of tax credits are offered for battery-powered or plug-in hybrid sedans that sell for under $55,000, and pickups and sport utility vehicles that go for under $80,000.
Article Credit to Fenderbender.
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