Why Are Electric Cars So Expensive – Have you ever gone shopping for an electric car? Tesla Model S aside, you get very little car for a lot of money. why? It’s not like an expensive electric golf cart! Electric cars are less convenient than a gas car—smaller, longer to charge, and still more expensive. We all know this is the future, and has been for some time, so why do prices for an electric car remain so high compared to a comparable car with an internal combustion engine? In short, why are electric cars so expensive? With Matt DeLorenzo, senior managing editor at Kelley Blue Book, who knows a lot about cars, we ask for some answers.
It’s actually about the battery. An electric car has a big battery, and boy, it makes a lot of money. If people want more junk – more miles for the same cost – then the price goes up. A Nissan Leaf in the $31,000 range gets 150 miles on a charge. But the Leaf Plus, which can go 226 miles on a single charge, costs a few thousand more.
Why Are Electric Cars So Expensive
Sales prices for electric cars are trending down with the numbers as more batteries are made and more cars are sold, but there is still a gap between the price of an electric car battery pack and an internal combustion engine.
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DeLorenzo says a good rule of thumb is to look at a car offered in both electric and conventional guises and note the difference in price. Take the Hyundai Kona: The entry-level version is around $20,000. The EV version of the Kona is almost $17,000 more! Even with a $7,500 federal electric vehicle tax credit, there’s still a $10,000 price difference.
This is not an accurate comparison as the EV variant is more loaded with features than the base model. But even the equipped gas-powered model is about $10,000 cheaper than the electric version. “Until the cost of the battery comes down significantly, it will cost about as much to buy a conventional gas car,” says DiLorenzo.
It is good. Cost-wise, you can compare an electric car and an electric car’s drivetrain to a gas car’s transmission — and a battery with an electric engine, says DeLorenzo. And in this example, the difference is currently $10,000.
In reality. They play a role in the adoption of EVs so consumers aren’t scared — even if they still have to come up with the full cost, since DiLorenzo says the tax credit doesn’t come until after the car is purchased. But the problem with these federal tax credits is their nature: They phase out when a manufacturer sells more than 200,000 electric vehicles. They have already been surpassed by Tesla and GM, says DeLorenzo, and will soon be surpassed by Nissan.
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Yes, it appears that this is the result of a misconception on the part of the legislators. The thinking was that if more people bought EVs and they were mass-produced, the price would come down to where they would be competitive on price with gas-powered cars, in which case there would be no need for incentives. However, it is clear that this has not happened yet!
What does have a point here is the fact that this additional cost of the electric engine – or rather the battery – can easily be afforded by buyers of luxury cars. Some affordable automakers offer EV versions of gas-powered vehicles, such as the Fiat 500 or Volkswagen e-Golf. But for cars in these classes, the difference in prices is more visible to the consumer than in the luxury segment, where the manufacturer can hide some additional costs within the brand cabinet.
DeLorenzo doesn’t think so. The Ford F series is the most popular car series in the world: more than 60,000 are sold each year. However, electric trucks will be more like the Tesla Model S, he says: They appeal to a certain segment of the customer, but they are not intended to be mass-market vehicles. Electric trucks have the same limitations as electric cars (high cost, short, long extension/charging time), and more: their payout and towing capacity will be reduced, and the trade-off with an already depleted battery will be huge. life.
“There are definitely a lot of people who want to build and sell, so you’re going to see a lot of them on the market,” says Di Lorenzo. “I don’t see many of them selling at the same number that trucks are selling today.”
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Not for now. DeLorenzo says at this point, few automakers are making money from them. When Sergio Marchionne was head of Fiat Chrysler Automobiles, he called the Fiat 500 the “obedience car” – in other words, the reason for selling it was to meet the California Electric Car, which allowed him to sell more cars in the state to sell. ,
“Some of them see it as a cost of doing business to support their profitable product lines,” DeLorenzo says. “So if I have to sell two Fiat 500s to sell one more Ram pickup, I will! Because I’ll stop making money on the Ram pickup, where I’ll make more profit.”
Oh sure. On the other hand, they see regulatory and environmental regulations as so strict that they have no choice, and they have to fix it now. That’s because they see electricity as the future, just like you. So they hedge their bets. This is a defensive move until technology enables electric vehicles to compete with gas-powered vehicles on price and convenience.
This is because any major new technology opens the door for new competitors to enter the market, just as Tesla did. If there was some kind of technological paradigm shift that would allow companies to make electric cars, traditional car companies would be flooded with new competitors that only turned to making electric cars (and they would be forced to make gas-powered cars). no need to worry). Conventional electrical systems must therefore be available when this happens, and working on electric cars is a defensive measure against the tighter regulations and competitive markets of the future.
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What about the fact that there is less money to be made on an electric car, both on after-sales maintenance and materials?
It’s true—there’s no oil to change, the brakes last longer (thanks to regenerative braking technology), and there are fewer things to use on an electric car. Someone stop losing money on this!
But he would be a seller, not a producer. Of course, manufacturers make less money on parts, DeLorenzo says, but the labor cost disadvantage isn’t enough to stop automakers from making electric cars. Figuring this out is a challenge for retailers – they have to compete with the rapidly changing oil industry anyway.
They look good now. The battery is about a third the size of the all-electric, which is good for the price (if not for the longer range), and they make long road trips easier than they take gas. They also qualify for certain tax rates. They serve the useful purpose of allowing manufacturers to meet regulatory requirements as well. Toyota currently sells more hybrid RAV4s than gas-powered ones. Overall, DeLorenzo says the hybrid costs only about $2,000 more than the gas-powered vehicle.
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So is there some kind of conspiracy with the oil companies to keep electric cars off the rails, or is there something to stop them?
What’s holding them back, DeLorenzo says, is the average consumer. They don’t have more than $25,000 to $30,000 to spend on a new car, and they want expensive fuel and a nice car. They will consider an electric car if it is cost-competitive, but there is currently no car that meets most people’s needs. This is certainly a reason for tax credits and expectations for developers. But EVs won’t really break through until there’s a balance between price, performance and ease of use (especially overtime). Although DeLorenzo says that even if they could achieve charging times of up to 10 minutes, we would see a significant increase in sales of electric vehicles.
In fact, Toyota just announced it last week – and it looks great. The company unveiled a new solid-state battery that can charge in 10 minutes and go up to 300 kilometers on a single charge. The company aims to launch a car of this type next year, and will have cars with these batteries on the road within a few years. It is said to be non-flammable like lithium-ion batteries, negating the need for cooling technology and reducing the risk of fire. The Japanese government has she