Electric vehicles have been around for a while now, but they are still not as popular as gas-powered cars. One of the main reasons for this is the high price tag. Many people believe that electric vehicles are too expensive, and they don’t understand why they cost so much more than traditional cars. In this article, we will explore the reasons behind the high price tags and debunk some of the myths that are floating around about electric vehicles.
1. Development costs
The combustion engine has been around for a while at a mass scale, this means there have been countless vehicles built with an engine, and manufacturers have been able to tweak, and change them over time to help with reliability, power, and smooth delivery. At this scale, developing another vehicle becomes less expensive, as it is just a rinse and repeat process (this is why all crossovers look the same now).
On the other hand, building an electric vehicle is a much different process! Even legacy automakers are having to build their systems from the ground up, which costs a ton in the R&D department. They have to figure out how to store the battery, develop the battery, and build out systems that work with electric
2. Batteries are expensive to make
One of the most important parts of an electric vehicle is the battery. Batteries are what allow electric vehicles to run without emitting any pollutants. The problem is that batteries are expensive to produce. It is estimated that the battery accounts for about 30% of the cost of an electric vehicle (and much of its weight).
This high cost is because batteries are made with rare earth metals. These metals are not found in large quantities, and they are expensive to mine. In addition, the process of manufacturing a battery is very complex and time-consuming.
The good news is that battery prices have been falling in recent years, and they are expected to continue to drop as technology improves.
3. Electric vehicles tend to be luxury vehicles
Another reason electric vehicles are expensive is that they tend to be luxury vehicles. Many of the first electric vehicles were high-end cars like the Tesla Model S. These cars had all the bells and whistles, and they came with a hefty price tag.
This is a smart way of handling this, as the more expensive a vehicle is, the higher margins it allows for. Once you get your processes down, you can release more mass-market options. Back the Model S, was a high-end luxury vehicle, and now we have the Model 3, which is a more mass-market option.
As electric vehicles have become more popular, there have been more affordable options released, but even the more affordable electric vehicles are still more expensive than their gas-powered counterparts for now.
The reason for this is that electric vehicles require a lot of expensive technology, and this technology is not yet available at a mass-market level.
4. Start-Ups need to make a profit quickly
When electric vehicles first started to become popular, there were a lot of start-ups that began to pop up. These companies were trying to get a piece of the pie and make a profit quickly. To do this, they had to charge high prices for their electric vehicles.
Now, we are starting to see legacy automakers get involved in electric vehicles. These companies have deep pockets, and they can afford to lose money on electric vehicles for a while as they work to develop the technology and bring down the cost.
Because of this, we are starting to see more and more vehicles go into the budget electric vehicle market. However, they can only go so low.
5. Charging infrastructure needs to be built out
Another reason electric vehicles are expensive is that the charging infrastructure needs to be built out. This is a chicken and egg problem. For electric vehicles to be viable, there need to be placed to charge them. But for there to be places to charge them, there need to be electric vehicles on the road.
The cost of this infrastructure unfortunately has to be passed down to the initial adopters of electric vehicles, driving the final cost of the vehicle upwards.
How will electric cars become more affordable?
Electric cars will become more affordable in a few ways. First, as electric car technology improves and becomes more widespread, the cost of batteries and other components will continue to fall.
Second, legacy automakers are getting involved in electric vehicles and they have the resources to bring down the cost.
Finally, charging infrastructure is being built out, which will make electric vehicles more convenient and thus more popular. As electric vehicles become more popular, the cost will continue to fall.
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What is the cheapest electric vehicle?
If you are worried about electric vehicles being too expensive, you can always opt for the budget-minded versions of this propulsion method! The Nissan Leaf is the cheapest mass-market electric vehicle. It has a base price of $27,800.00.
The Leaf is a five-door hatchback that seats five and has a range of up to 151 miles. It is powered by a 107-horsepower electric motor and has a top speed of 90 mph.
The Leaf was introduced in 2010 and was the first mass-market electric vehicle. It is available in over 60 countries and has sold over 300,000 units worldwide. The Leaf has won numerous awards, including the European Car of the Year, the World Car of the Year, and the Green Car of the Year.
As you can see, there are several reasons why electric vehicles are so expensive. The good news is that prices are expected to fall as the technology improves and electric vehicles become more mass-market. In the meantime, we will just have to pay a little extra for our electric vehicles!