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The Race for a $25,000 EV
Automotive manufacturers are working tirelessly to refine the manufacturing process and shave dollars off the MSRP of their EV models. The questions is where their efforts should be directed to save the most money on the production line. A starter EV is going to compete with vehicles like the Toyota Corolla.
Tesla has been going after price aggressively and is expected to announce a model that is between $25,000 to $30,000. If Tesla can hit this price point, they can appeal to a larger market segment. Currently, the lowest priced Tesla is a Model 3 base at around $42,000 MSRP.
In the United States, the average new vehicle is costs almost $49,000 which represents a 30% increase versus 3 years ago.
It’s important to note that the Inflation Reduction Act (ironic name) lets US buyers take a credit as large as $7,500 for EVs made in North America but the rules and eligibility is a complete mess and there is a lot of confusion.
Works Cited:
https://www.cnbc.com/2023/04/16/the-25000-ev-is-coming-with-big-implications-for-car-buyers.html
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