about 2 months ago • 1 min
The price of electric vehicles (EVs) dropped to $51,000 in September, down from $59,000 at the start of the year. That means they’re just $3,000 more expensive than the average price of your regular vehicle, including hybrids and gas guzzlers.
There are a few reasons behind that. Cheaper production costs and fiercer competition have meant there are more models on the market. But the drop in prices is also a reflection of slowing demand, potentially signaling that the hype around these models isn't as deep as first thought. EV sales are still rising, but at a slowing rate – and some brands are dealing with rising backlogs of unsold cars. A lot of drivers are seemingly still on the fence about going electric, put off by hefty price tags and the thought of constantly recharging a car with limited mileage.
So companies like Tesla are cutting prices to squash at least one of those two concerns, while other brands are throwing in deals. But because the trend’s trailblazers have already got the keys to their EVs, prices may need to flatten further before more cautious newbies jump on board.
Facing lower demand or lower sales prices, big carmakers are reevaluating their game plans – especially given that they're pouring billions into new factories and battery hubs to cash in from their (potentially optimistic) high EV sales projections. As it stands, hybrids seem to be stealing consumers' hearts a bit quicker. That trend could be a win for Toyota, which has focused on its hybrid technology over the last few years.
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