EV penetration is going to depend upon affordability. One of the key issues, at the moment, is the fact that EVs are still in the premium category for the most part.
In this video I discuss how this will be rectified over time. However, it is also important to note that EVs can come down while ICE does not have that ability.
▶️ 3Speak
I think mass adoption of EVs will be considerably contingent on the price of EVs flipping the price of ICE cars. The economy car buyer doesn't much care about "cheaper in the long run" because they only have so much money up front, to begin with.
And if the whole "age of prosperity" thing is going to happen, all these things we use — including EVs — will have to become much cheaper...
They will flip when they enter the segments ICE is in. They are already flipping premium brands.
As I stated, most EVs are not cheaper than a Toyota Corolla because they are not in the economy segment. Within a few years, they will be.
EV penetration is going to depend upon affordability
It will happen eventually. Takes time O.O back when computers started out they also weren't really affordable for everyone
I agree. EV technology still has a lot of room for improvement. From efficiency, to the cost of making the different parts. ICE on the other hand have pretty much stagnated. Most of their recent upgrades have been hybrids. If we can find cheaper ways to make batteries, or even reuse them efficiently, that could bring the price down a lot.
We will see what the next gen manufacturing process from Tesla offers. They supposedly are coming up with a new approach that will alter things completely, just like the megapress did.
Last news I've read is that they are able to produce a lot of batteries in their Texas factory.
Hard to know exactly. I hope they will let us know on the next earnings call. Supposedly they are producing enough to meet the Cybertruck production of 1K per week.
We will see if that is a sustained rate.
I feel like at least for where I live, EVs will never be dominant. Hybrids might become more common, but full EVs don't like our -30'c to -50'c winters that last for basically half the year.
I see some folks at charging stations, even in the winter, but it's pretty rare and I suspect it always will be unless they can do something to handle the unique brutality of Canadian winters.
Norway isnt a warm country and 80% of their new car sales are EV.
So yeah it is a challenge but changing.
Very true, Norway is almost equally brutal! If they can get the EVs to handle the temps it would go a long way in being more adoptable here. The drain on batteries in the cold makes some longer trips pretty difficult right now.
Yep And they seem to work around it.
This is a problem I would say will get solved.
I hope EV prices are dropped considerably in the near future and become more affordable somehow so more people can be able to buy them.
Need to enter a new segment. Premium vehicles will never reach mass adoption.
Summary:
In this video, Task discusses the affordability of electric vehicles (EVs) compared to internal combustion engine (ICE) vehicles. He talks about how EVs initially were not cost-effective, primarily due to leading companies like Tesla focusing on higher-end vehicles. Task highlights the importance of battery costs in determining the affordability of EVs and mentions a Chinese manufacturer offering a relatively affordable EV. He explains how the costs of EVs are expected to decrease significantly in the coming years, making them more accessible. Task also points out the challenges faced by traditional automakers in adapting to the shift towards EVs and the impact on the dealership network. He concludes by mentioning a potential tipping point where EVs could become more cost-competitive with ICE vehicles.
Detailed Article:
Task discusses the topic of EV affordability, emphasizing that affordability is a relative term influenced by location and individual financial status. He notes the increasing prices of both ICE and EV vehicles in recent years, with Tesla leading the EV market and not offering an economy vehicle. Task mentions that traditional automakers, like Ford and General Motors, have also focused on higher-end EV models rather than targeting the economy market segment.
He explains how the cost of EVs is largely affected by battery prices which have been decreasing, hinting at a future where EV costs will significantly drop. Task points out that the higher initial prices of new technologies like EVs are common before they become more accessible to the mass market. He highlights a Chinese manufacturer, BYD, offering an EV priced around $11,500, suggesting a potential shift towards more affordable EV options.
Task touches on the challenges faced by legacy automakers in adapting to the increasing demand for EVs, mentioning plant shut-downs and cost mitigation strategies like moving production to Mexico. He discusses the impact of dealership networks on consumer costs, indicating that dealership markups contribute to the final price paid by consumers.
The video concludes with Task predicting a potential tipping point where EVs could reach cost parity or even become cheaper than ICE vehicles. He stresses the significance of manufacturers, both EV and legacy, introducing more economy EV models to drive affordability. Task highlights China as a leader in rolling out affordable EV models and expresses optimism about the future of EV affordability.
In this comprehensive analysis of EV affordability, Taskmaster provides insights into the current landscape of the automotive industry, focusing on the shift towards EVs and the potential for increased affordability in the near future. Task's discussion sheds light on the factors influencing EV costs, the role of battery prices, and the challenges faced by traditional automakers in adapting to the evolving market trends. By highlighting a Chinese manufacturer's affordable EV model, Task emphasizes the changing dynamics of the industry and the need for manufacturers to introduce more budget-friendly EV options to drive widespread adoption.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.