Why prices of some EVs are falling
Tesla reports earnings later today. The company announced earlier this month that it had delivered a record number of cars in the second quarter after cutting its prices. Ford said this week it’s also cutting prices on its electric F-150 Lightning pickups.
More people are buying electric cars every year, but EV sales still only make up about 7% of the United States market.
Price is a big factor, said Stephanie Brinley at S&P Global Mobility.
“Electric vehicles, in general, are more expensive than their segment counterparts by $5,000 to $10,000. An F-150 Lightning pickup truck is that much more expensive than a gas version,” Brinley said.
Over time, she said, as companies build new manufacturing and battery plants and supply chains, the expectation is “that we do get better scale, we do get better battery technologies, [and] with more production volume costs come down.”
But it’s going to take time.
Right now, “different companies are at different stages”, said Jessika Trancik at MIT.
They likely have different reasons for cutting prices. “Competition, reducing margins, technology improvement, economies of scale,” Trancik said.
And, she said, likely some strategic pricing to lure customers in and gain a foothold in the market.
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