So you might be wondering, why are electric car’s so expensive. Is it just a new technology that is always expensive in its early years? You remember it, phones and computers were only in the hands and houses of elites. But now even the 10-year-old kid has a phone. The magical company called Tesla changed all of this in the 21st century. Tesla is a brainchild of Elon Musk, who made waves in the automobile industry, reshaping the future outlook of all EV’s.
While Tesla’s competitor laughed and remained in the “internal combustion engine” lane, too scared to swerve. Tesla undoubtedly charged ahead quietly (literally!). Until recently when Tesla turned one too many heads, but only a few bought. WHY? You might ask, well Mrreader you probably know the answer already. It is too EXPENSIVE. So why are Tesla cars so expensive, forget that Why are almost all Electric car models so expensive
Battery prices are one half of the solution and lack of economies of scale is the other half. However, since 2010 battery prices have fallen 85% and forecasted to hit $100USD/kWh in the next 5 years. Another person might say “Disregarding the technical efficiency and economics of scale, how has Norway been able to successfully penetrate into the electrical market”.
Do we hate electrical cars and love our fuel-guzzling jeeps? Why can’t we make a change to electric? The adaption of EV is steadily creeping yet only 5% of new car sales are electric. Do we like the macho car sounds over peaceful green electric cars? As per my knowledge, I think it comes down to economics the government in Norway has paved a clear path that eases the buying decision of EV. These are government incentives in terms of tax breaks and subsidies to EV. In fact, installing an electric car charger makes it very cheap to re-energize an electric car.
During the most recent Australia election, the coalition government promised to introduce tax incentives however like any other bureaucratical institution. Decisions take time and the effects of these policies may require a whole new page. The policies are expensive in short term and have long term benefits past any political leader’s time frame. In most markets, an electric car and the electric car charger is often government-subsidized
Despite that fact, government fleet and local councils have started to take initiative and started to embrace the environmental benefits as well as the economic cost. As private businesses start to realize the market gap that can be filled in with the latest capitalist tools of monetary capital and a slight touch of entrepreneurship. Many businesses are using solar and electric car chargers to help transition to green fleets to meet net-zero emission promises.
To an extent, the policies contribute to the incentive however if everyone demanded EV too quickly, there will be a huge shift in the automobile industry that could potentially disrupt with many negative impacts on the economy as a whole. We can see this in live-action as Tesla struggles to meet the customer demands, the backorders keep increasing. This is not to say that we don’t need government policies to accelerate the transition towards EV.
So tell me, why are all Electric cars so expensive? And whose fault it is. Don’t tell me, tell your friend that you bought a JEEP.