EVs: What's The Solution To The New Pricing Problem?
Electric vehicle prices continue to climb, reversing a downward trend that was inspired by Tesla, demanding some solution to recent problems. Unfortunately, even as costs are soaring, government incentives have been exhausted for two major automakers already. This unfortunate timing is terrible news for eager buyers ready to invest in more energy-efficient and sustainable vehicles. Only to face significant price increases.
When Tesla launched its $35,000 Model 3 in 2019, it was a new milestone for the company and the industry. While there had been low-cost electric vehicles before, they came with serious trade-offs. Range limitations and a lack of charging infrastructure hampered earlier efforts at moving the industry to greener technology. It took a massive leap of faith and heavy investment by Tesla to launch an attractive and powerful electric car at such a low price while simultaneously building out a massive Supercharger network.
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Tesla is leading the electric vehicle market, and where it goes, other automakers will have to follow. If Tesla manages to cut costs, others will be forced to as well. Unfortunately, cutting costs doesn't appear to be likely soon as global supplies of the components needed to manufacture cars remain tight. Even more challenging, the metals used in EV batteries must be mined and are increasingly hard to come by as more and more manufacturers vie for those same materials. A fresh round of government incentives was planned to lower consumers' costs, but Congress is holding up that bill. That means it might be up to the industry and leading manufacturer Tesla to develop a plan to solve EV pricing.
Tesla's $35,000
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