Right now, without subsidies, buying an electric car does not add up. Currently there is a price premium, and as a result the cars only appeal to those happy to pay a premium to indulge a passion. Buyers are prepared to pay a premium for the environment or the acceleration, but right now, buying is driven by passion and/or subsidies. Even worse, prices do not appear to have fallen as battery prices suggest they should. For everybody to be buying electric cars, at least one of these will apply:
- Governments will be subsidising all car purchases.
- Cars will cost the average person much more.
- Prices of electric cars must fall substantially.
Yet governments have plans to progressively mandate electric vehicles to meet emission targets. This is an exploration of why people buy electric cars today, what needs fixing to make them affordable and viable for all, and not just an expense and/or inconvenience forced on people. Are prices really about to plummet?Continue reading “Electric Cars: 2021, It Just Doesn’t add up (yet).”