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Long-Range EVs More Affordable Than Gas Cars

Average Gas Cars More Expensive Than Long-Range EVs – Study

The study claims that long-range EVs have become more affordable than average gas cars.

A Bloomberg study finds that the average new gas cars in the U.S. is more expensive than new long-range EVs. Long range, here, implies an electric car with a range of over 300 miles (483 km). In a certain manner, 300 miles has become a benchmark as to what potential EV owners and carmakers are aiming for in a ‘regular’ electric vehicle. As range anxiety remains a prevalent issue, new EV buyers look at this figure as a somewhat acceptable range. That is the reason why we see multiple variants of an EV – Standard, Long Range and Performance.

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Average Gas Cars More Expensive Than EVs

As per this report, the national average cost of a new gas car in the U.S. is around $47,000. Hence, there are a few key EVs which are priced below this mark from top carmakers in the world. These include electric cars from Tesla, Hyundai-Kia and General Motors. For instance, the 2024 Hyundai Ioniq 6 offers a range of an attractive 361 miles (581 km) on a single charge. Its SE trim has a retail sticker of $42,450 before taxes and fees. Similarly, the Tesla Model Y starts at just $44,900 before taxes and fees. It boasts a range of 320 miles (515 km) on a single charge.

Interestingly, if we take into consideration the federal tax credit of $7,500, these prices can drop further significantly. Finally, the new Chevy Equinox EV in its 2LT variant costs $42,000. With the tax credit, it would dip even below $35,000. However, things could really get exciting once the 1LT version launches later in the year. It will have a price tag of a mere $33,600 before taxes and fees. It will let the users drive for 319 miles (513 km) as per EPA. Therefore, we can reasonably conclude that the future is certainly pointing in the direction where EVs would be much closer to regular cars in terms of pricing.

Now, I understand that some of you might consider this too microscopic an analysis and I agree. But we have to start from somewhere. I must also mention here that, in general, EVs are still around 15% more expensive than gas cars. This is confirmed by a report from Cox Automotive. Clearly, carmakers need to come up with many more affordable EVs for the masses. The good news is that they are already working towards this.

For instance, the CEO of Stellantis, Carlos Tavares said, “Affordability is the key success factor right now. If you want the scale to materialize, you need to be selling BEVs to the middle classes. It’s not ‘Watch out, there is a storm coming, and we are in the storm, and this storm is going to last a few years. It’s going to put a number of companies in trouble.” He remarked about the need to come up with affordable EVs for the mass market and the upcoming $25,000 electric Jeep will be crucial in that strategy.

2024 Chevy Equinox EV Front Three Quarters
2024 Chevy Equinox EV Front Three Quarters

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Learn Electric Cars Says

As this initial wave of EVs slowed down a little, the early adopters were definitely the most affluent personalities, for the most part. However, in order to make EVs widely popular, the contribution of the masses is a must. That is what we see with major carmakers including the likes of Hyundai-Kia, Ford, GM, Volkswagen Group, Tesla, Stellantis, etc. We already know how successful budget Chinese EVs have been in China and Europe.

The future of electric mobility, I feel, definitely belongs to affordable EVs and mass markets. As the EV wave spreads its roots across emerging nations, the need for compact and inexpensive electric cars is apparent. I must also add that the costs of components like lithium-ion batteries are going down as well. The technology is becoming more and more sophisticated. Hence, we must brace ourselves for the onslaught by affordable electric cars in the immediate future.

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