This totally misses the point. Automakers would make cheaper cars if they could get the adoption, but the input cost for Lithium for LFP batteries or Nickel and Cobalt for NMC batteries has skyrocketed. Lithium was as high as 4Xs the cost Pre-Covid, for example
Since the input cost is so much higher, premium was the initial target until the supply chain improved and reduced cost. I mean that’s exactly what Tesla did. It’s just not getting broad support because a lot of people are wary of buying EV over range or charging anxiety.
The lessons they took away from the COVID lockdown era are that it’s better to sell lower volumes with higher mark-up. Their business models are shifting away from high-volume, low-margin sales.
Why sell 100 cheap cars with a $2K margin, and deal with all those potential warranty/recall issues - when you can sell 10 top-of-the-line variants with a $20K+ margin, and continue to rake in extra with higher service costs, finance fees and the like.
I think PHEVs are the perfect way to get people over range anxiety. I know my Volt has effectively a gallon of gas worth of range or 40 miles. That’s enough range to do 90% of the driving I do in a week if I charge after drive. Groceries, daycare, and work (1 way, with charging stations). I think a lot of families are used to having my car and my spouses car where now it’s looking like EV for short local trips and ice for longer trips. I think PHEVs will help teach folks about what kind of range they actually need even if they are charging at home everyday.
Now we have the luxury of a garage, which seems like a major hurdle to mass adoption. More so, than range anxiety.
Hurdles from my perspective :
Price, Price, Price
No Garage
These are tied together as the people who can afford a garage are the same people that can likely aslp afford an EV. Similar target markets.
High Used Prices
Low Supply
Drivers own lack of awareness of their driving habits.
Red Herring in the media: Our grid can’t handle it!
This is something I hear my boomer mother say even though she’s a perfect candidate for an EV.
This totally misses the point. Automakers would make cheaper cars if they could get the adoption, but the input cost for Lithium for LFP batteries or Nickel and Cobalt for NMC batteries has skyrocketed. Lithium was as high as 4Xs the cost Pre-Covid, for example
Since the input cost is so much higher, premium was the initial target until the supply chain improved and reduced cost. I mean that’s exactly what Tesla did. It’s just not getting broad support because a lot of people are wary of buying EV over range or charging anxiety.
Most automakers won’t, any time soon.
The lessons they took away from the COVID lockdown era are that it’s better to sell lower volumes with higher mark-up. Their business models are shifting away from high-volume, low-margin sales.
Why sell 100 cheap cars with a $2K margin, and deal with all those potential warranty/recall issues - when you can sell 10 top-of-the-line variants with a $20K+ margin, and continue to rake in extra with higher service costs, finance fees and the like.
They don’t have a $20k margin on EVs. They’re barely break even and often lose money. They sell them for CO2 credits
I think PHEVs are the perfect way to get people over range anxiety. I know my Volt has effectively a gallon of gas worth of range or 40 miles. That’s enough range to do 90% of the driving I do in a week if I charge after drive. Groceries, daycare, and work (1 way, with charging stations). I think a lot of families are used to having my car and my spouses car where now it’s looking like EV for short local trips and ice for longer trips. I think PHEVs will help teach folks about what kind of range they actually need even if they are charging at home everyday.
Now we have the luxury of a garage, which seems like a major hurdle to mass adoption. More so, than range anxiety.
Hurdles from my perspective :
Price, Price, Price
No Garage These are tied together as the people who can afford a garage are the same people that can likely aslp afford an EV. Similar target markets.
High Used Prices
Low Supply
Drivers own lack of awareness of their driving habits.
Red Herring in the media: Our grid can’t handle it!
This is something I hear my boomer mother say even though she’s a perfect candidate for an EV.
Wouldn’t high used prices be good for new car buyers? To be fair, EVs plummeted in value in the 2H23 and are now in line with the broader market