For car owners in the United States, news on January 3 stated that electric vehicles will become less expensive in 2023. This is large because there will be a flood of cheaper electric cars on the market, and new government subsidies will make more expensive models more affordable.
Most new EVs discounted are above $50,000, there’s as yet gigantic space for development at the superior finish of the market. ” According to Bill Newman, head of SAP’s North American automotive business, “there is still a lot of room for growth in the $30,000+ premium EV market for at least the next 10 years to meet portfolio goals.”
However, the following factors may result in electric cars becoming more affordable in the United States by 2023:
1. Increased contest from laid-out vehicle organizations
The Nissan Leaf and Kona Electric both have smaller batteries and a limited range. Consequently, the more dependable option is the Chevrolet Bolt EV, which has a range of 400 kilometers and costs less than $30,000. However, Tesla, the backbone of the electric vehicle market, does not offer any products that are even remotely comparable to this price, leaving consumers with few options that satisfy their requirements.
The Chevrolet Blazer EV will go on sale later this summer, and without any incentives, it will start at around $45,000. The Silverado, GM’s electric pickup, will go on sale this spring. However, a less expensive model with a starting price of around $39,900 may be available in the second half of 2023.
Speaking of deferred electric vehicles, Nissan will also introduce its well-liked Ariya CUV EV at the beginning of 2023. Nissan’s European and Japanese design teams collaborated on the Ariya, a sleek vehicle with a luxurious interior. The Engage Trim, the entry-level model of the Ariya, retails for about $43,190.
2. Tesla and Fisker
At its plant in Graz, Austria, the Fisker Ocean SUV EV is already being manufactured. The company will introduce other models next year, including the entry-level Ocean Sport, which starts at approximately $37,499. The original Ocean One launch model will cost $69,000.
3. Will Tesla finally introduce a model with lower prices?
The rear-wheel-drive Model 3, which retails for $46,990, is Tesla’s cheapest model because the company has always focused on the high-end luxury electric car market. Elon Musk, CEO of Tesla, has stated that the company’s self-driving taxi, costs less than $30,000.
4. Effect of public subsidies
Tesla and GM are gradually losing eligibility for tax credits under the previous regulations. However, the two automakers will be permitted to participate in the program once more on January 1, 2023. Purchasers of eligible electric vehicles will be eligible for tax credits totaling up to $7,500.
Commercial vehicles, regardless of where they are manufactured, are also eligible for the full tax credit under the Inflation Cut Act. The subsidy is available for the Ford F-150 Lightning Pro, Silverado EV, E-TRANSE electric van, and Mercedes eSprinter Van. This should help keep prices even lower.