Long-Range EVs Now Cost Less Than the Average New Car in the US
from Bloomberg
EcoTech Note: EVs reduced the Green Premium to zero in terms of operating costs and total costs of ownership a couple years ago. Now they have even achieved price parity on the upfront capital costs. The other, non-economic frictions are still there: charging infrastructure, charging time, range anxiety, and unfamiliarity. But if economics is destiny, watch EV sales in the US take off.
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“Darwinian” competition and a slew of new models helped electric cars with at least 300 miles of range reach another milestone in price parity.
The automotive industry has entered a fiercely competitive phase in the electric vehicle transition, and it’s producing an intriguing result for US car buyers: the first long-range EVs that are cheaper to buy than the average gas-powered car.
At least three manufacturers — Tesla, Hyundai-Kia and General Motors — now offer EVs with more than 300 miles (480 kilometers) of range for less than the cost of the average new vehicle sold in the US, according to an analysis by Bloomberg Green. The most affordable is Hyundai’s 2024 Ioniq 6, which comes with 361 miles of range and a price tag that’s 25% below the national average of roughly $47,000.