The average price of an EV in August was $61,955, up 7.8% from $57,472 in August 2021, according to Edmunds.com. That compares with an average of $47,195 for all vehicles in August.

Source: Are you ready to switch to an EV? Here’s why you may find yourself priced out of the market

Many states are now mandating the purchase of EVs in the not very distant future.

Traditionally, new products replace old products by offering better value.

But for EVs, market share comes from government banning the sale of competitive options and enforcing purchase of EVs. This seems like the wrong strategy.

The main benefit is to manufacturers who get a government guaranteed market – guaranteeing the manufacturer a return on capital investments to build new factories for EVs.

May be this will result in efficiency and volume cost reductions – time will tell. New battery innovations may reduce future costs, improve capacity, and provide faster charging.

For now, the Chevy Bolt EV (with not fast charging) and the Nissan Leaf with smaller battery and the odd charge connector, are the only “affordable” class EVs for now. Features like range or fast charging add tens of thousands to the cost. The 2024 GM Equinox EV is expected to eventually sell at a starting price of $30,000.

Coldstreams