It is no longer convenient to drive an electric vehicle because its price has increased. Although you can save money on fuel, you will not until you afford an EV. You might never buy an electric car unless you find many income streams, including playing kasyno na telefon games online.
Electric vehicles from Tesla and other companies have always been expensive. Their price is steeper now, thanks to the rising cost of raw materials and other factors. We will explain why buying an electric vehicle is costlier nowadays. Learn more next.
Conducting research is costly
Electric vehicles are a fresh idea requiring further development. Unlike typical combustion engine cars and hybrid vehicles, EVs use different systems. Hence, developing them requires doing expensive research and development projects.
Companies like Tesla and Rivian spend more money on research and development alone. They produce fewer cars and must allocate the higher research and development costs to only those items. Regarding R&D costs, it is cheaper to make a regular hybrid or gasoline/diesel vehicle than an electric one.
Rising costs of raw materials
It costs an electric vehicle producer more money to buy raw materials in 2022 than in 2020. In 2020, the cost of developing an electric vehicle battery was $3.381. Today, the average price of raw materials for making the same battery is $8,255.
A comparable combustion engine car costs 125 percent less to construct. The EV industry buys its raw materials for making battery cells from Russia. Since Russia triggered a war in Ukraine, the price of these battery cells has increased as the supply chains continue to crash.
This leaves the EV producers no choice but to increase their car rates. Tesla has had to raise the price of some of its models by $6,000. Even if gas prices have increased and helped raise the demand for EVs, ordinary income earners may still need their combustion engine vehicles.
EVs are out of reach due to their hefty pricing. According to AlixPartners, we are likely to endure this trend until 2024.
Competition is low
The cost of producing electric vehicles is higher than most small and medium manufacturers can afford. Thus, Tesla, Revian, and Ford might enjoy less rivalry for a long time. Fewer competitors mean higher prices for electric cars. The hefty EV prices might continue until more producers penetrate the EV industry.
Customers are willing to pay more money
When the first electric car emerged, it was expensive. The cars that followed were also expensive. Hence, customers do not expect the price of an EV to be small. Manufacturers take advantage of this perception by raising the cost of their EVs. If some competitors create cheaper electric vehicles, this might help change the customers’ view.
Electric vehicles are expensive to insure
People view EVs as a status symbol. If some of them have the money, they will not hesitate to pay a higher price to improve their status in society. Moreover, an EV is more expensive to insure because of its luxuriousness.
One of the reasons for higher insurance costs is expensive spare parts. Ruining the lithium battery alone could cost you fifteen thousand dollars to replace. Many car thieves would like to lay their hands on a luxury EV, which raises its insurance cost.
Conclusion
For ordinary customers, it is cheaper to buy a regular vehicle than an electric one these days. An EV does not pollute the environment, but it is out of reach for most ordinary buyers. Its cost has almost tripled in only two years and might stay that way for several months.
