GM Slashes Prices for Its Electric Vehicles (To Compete With Tesla)
This week, The Verge reported that General Motors’ 2023 Chevy Bolt electric vehicles (E.V.) have dropped in price by 18 percent since 2022, down to $26,595 from $32,495. Meanwhile, BMW in the last few weeks announced plans to alter its E.V. battery design, which is estimated to yield a 30 percent drop in materials costs over the next few years. And Ford CEO Jim Farley told attendees of the Bernstein Strategic Decisions Conference on Wednesday that he anticipates a “huge price war” in the E.V. industry in the coming years, as more and more carmakers price cars around that $25,000 mark.
Though building electric vehicles currently costs up to 45 percent more than standard automobiles—batteries and chargers are astonishingly expensive to manufacture—Farley predicts a future where carmakers’ focus on making designs more aerodynamic and producing smaller batteries with longer charges, both of which would drive costs down.
With such developments, more and more automakers are throwing their hats in the ring in an attempt to compete with giants like Tesla, which has quite successfully tapped into this fast-growing market. (Double the number of electric vehicles were sold in the U.S. in 2021 compared to 2020, and first-quarter sales for 2022 have held strong.)
A bit of a milestone:
After 130 years or so of growth, the global fleet of cars with only an internal combustion engine will probably peak in 2022. EVs are already the auto industry’s sales growth driver. Soon they will be the fleet growth driver too. https://t.co/C2GeXoIKnZ pic.twitter.com/wWJ1poyBVs
— Nat Bullard (@NatBullard) June 1, 2022
How much of this innovation and aggressive price-slashing is due to government intervention in the clean energy market? It’s hard to tell. E.V. sales have long been boosted by government subsidies that offer electric and hybrid vehicle owners federal
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