Electric vehicles have long been touted as the replacement for internal combustion engine (ICE) vehicles. This is as a result of electric vehicles’ ability to be almost 100% efficient when converting energy from batteries to power to the wheels. ICE vehicles on the other hand are only between 20- 40% efficient.
Presently though, electric vehicles are thousands of dollars more expensive than ICE vehicles. It is only with grants and subsidies from governments that help to bridge the price gap and incentivize buyers. These subsidies also help companies to push more electric vehicles into the market, hence making way for more innovations to bring down the prices of electric vehicles.
Electric vehicles are more expensive presently mostly because of the cost of the batteries. Companies are trying harder to make more energy-dense batteries so they can bring down the prices of these cars. Tesla is leading the way in battery technology and seeks to bring down its vehicle prices as low as $25,000. This would be groundbreaking and could push more people to buy electric vehicles.
It isn't just about the batteries only. The whole technology involved in electric vehicles is what would pull more buyers. From semi-autonomous cars to almost full self-driving cars and a myriad of safety features, can draw families to these types of vehicles.
https://www.nytimes.com/2020/09/20/business/electric-cars-batteries-tesla-elon-musk.html
3 comments:
I believe that our generation is experiencing quite the phenomenon in regards to the car industry. As concerns continue to grow about climate change in the environment, we get to experience first hand the transition of ICE vehicles to electric vehicles. You bring up a good point by saying that something that has made consumers hesitant about buying an electric vehicle is the price tag. However, this issue will be resolved as time goes by in my opinion. The technology that goes into these vehicles is quite new, and quite experience to produce. I believe as this market continues to grow there will be affordable options for all consumers. For example, the state of California has said that it hopes to ban gas cars by 2035. But, what are those who can't afford an electric car going to do? This will be an industry that is going to an industry that will be highly subsidized in its beginning so it can resolve that issue. Moreover, something else that this post made me think about was what will happen to current auto manufacturers like Ford, GM and etc. I wouldn't be surprised if in the next decade or two these large manufacturers will cease to exit if they fail to adapt to this current trend of environmental awarness.
I think that Tesla is definitely on the right track with making electric vehicles more affordable than ever. The reason batteries for electric cars are so expensive is because they contain cobalt, which is a rare and expensive element. Tesla is believed to have the breakthrough solution using lithium iron phosphate which is chemically suited for fast charging and is cost efficient. Along with this change, they have new battery technology which can allow cars to go 400 miles or more between charges and lasting as long as 1 million miles. This technology changes the way consumers think about the price they are paying for it as it is much more compelling for what they are getting.
I know that California recently passed a mandate to only sell zero emissions vehicles by the year 2035 so it will be interesting to see how the vehicle industry will have changed between now the year 2035. I do believe that electric cars will become a lot cheaper especially since more larger car companies are beginning to let out their own electrical vehicles. I feel like before when someone mentioned electrical cars people automatically thought of Tesla but soon there will be a lot more options.
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