According to recent news Unsold Teslas piling up in parking lots can be seen from space (qz.com) unsold teslas can now be seen from space. Over the years there has been huge hype about electric cars taking the market by storm with consistent growth and major rebates as well particularly in developed countries. The trend first started with exclusive luxury which now seems to be moving towards a demand for affordable electric vehicles. This perhaps is one of the major reasons for EV's loosing their value. The used cars in the market have lost significant value with an opportunity for masses to give them a shot globally as their prices come to near parity with standard gas vehicles.
Here are a few reasons why electric car prices have been trending downwards:
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Advancements in Technology: As technology in battery manufacturing, electric motors, and overall vehicle design improves, production costs decrease. This has allowed automakers to achieve economies of scale and reduce the overall cost of electric vehicles (EVs).
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Battery Costs Declining: The cost of batteries, which are a significant component of an electric vehicle's price, has been steadily decreasing. This is partly due to advancements in battery chemistry, manufacturing processes, and increased production capacity globally.
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Government Incentives and Subsidies: Many governments around the world offer incentives and subsidies to promote the adoption of electric vehicles. These can include direct financial incentives for buyers, tax credits, rebates, or subsidies for charging infrastructure development. Lowering the initial purchase price through these incentives helps make electric vehicles more affordable for consumers.
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Increasing Competition: The growing competition among automakers to capture market share in the electric vehicle sector has led to price competition. Automakers are increasingly investing in electric vehicle technology and scaling up production to meet growing demand, which helps to drive down prices.
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Lower Operating Costs: Electric vehicles generally have lower operating costs compared to traditional internal combustion engine vehicles due to lower fuel costs (electricity is cheaper than gasoline or diesel) and reduced maintenance needs (fewer moving parts).
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Scale of Production: As production volumes of electric vehicles increase, manufacturers benefit from economies of scale, which further drives down production costs. This allows automakers to pass on these savings to consumers in the form of lower prices.
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Environmental Regulations: Stricter environmental regulations and emissions standards in various regions are pushing automakers to invest more in electric vehicle technology. This increased investment and focus on electric vehicles are also contributing to cost reductions over time.
Overall, the combination of technological advancements, declining battery costs, government incentives, competition among automakers, and economies of scale in production has led to a downward trend in electric vehicle prices. As these factors continue to evolve, electric vehicles are expected to become increasingly affordable and accessible to a broader range of consumers in the coming years. So what is your take on this one, is it now the time to give it a try or wait for prices to further slump?
