Green energy’s future could be hampered by charging hurdles and EV prices
Auto - Show Biz clinic originally published at Auto - Show Biz clinic
He said that the vehicle is currently too expensive and difficult to purchase. His father, Ronald Strayhorne Sr. wore an Air Force veteran cap and said that it was better to wait until the truck had a longer track record. He said, “Let other people try it.”
This wait-and-see approach was shared by many at the show and could undermine a key component of the Biden administration’s green-energy agenda. The push to have plug in vehicles account for half of all new vehicle sales by 2030. The number of electric cars sold in the United States rose sharply last year, reaching 5.4 percent. Many models have long waiting lists. Analysts and buyers agree that there are still hurdles to mainstream acceptance of electric cars, including high prices and a lack of charging infrastructure. The details of which vehicles are eligible for the tax credits are still being worked out by the administration, confusing many consumers and dealers. And the incentives come after an eye-popping leap in auto prices over the past two years that has pushed many buyers out of any vehicle market, electric or gas-fired.
The average new car sold for $49,507 in the U.S. at the end of last year, but the average fully electric car cost 24% more — $61,448, according to data provider Kelley Blue Book.
“These high vehicle prices are becoming out of reach for most consumers,” Charles Chesbrough, senior economist at Cox Automotive, told a conference in Detroit this month
, referring to all cars, including electric.As more EV models hit the market, there are signs that competition is softening prices — a trend some analysts think could accelerate in the coming months. In recent weeks, Tesla has reduced prices on several occasions as competitors cut into its market share in the United States. According to a Morgan Stanley research note, “Tesla price reductions usher in the great EV depression.” This week’s announcement was made by Morgan Stanley.
Make electric cars more affordable for the masses is a key pillar of U.S. green power policy. The Biden administration and supporters in Congress are directing tens of billions of dollars to the project over the next decade, calling it key to boosting American manufacturing and cutting greenhouse gas emissions in half by 2030.
“Realistically, there are some things that concern me about getting to the
volumes and market share we are aiming for,” said Brett Smith, an analyst at the Center for Automotive Research in Ann Arbor, Mich.[EV]For its part, the Biden administration is armed with counterpoints to combat upfront EV sticker shock. In an interview, Michael Berube, deputy secretary for sustainable transportation at Energy Department, stated that tax credits will reduce the initial costs for many Americans and that new battery technology will drive down EV prices over time. He also talked up the long-term savings of going electric.
“You get the savings of course on the maintenance — 40 percent lower maintenance and repair cost. He also said that the cost of fueling a car is significantly lower. “If you were to fill up a typical car today it’s $49 for a gas car, $14 if you are charging at home and around $27 is you are fast-charging outside … to go the same distance.”
Big automakers remain optimistic and are investing tens of billions of dollars to launch dozens of EVs in the coming months.
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However, apart from price, another big problem could be looming, Lache said. Electric car owners continue to be plagued by a lack of charging infrastructure and frequent reports of chargers breaking down. He said, “You could potentially harm the industry for some time” and added that the White House is working to fix that problem with the bipartisan infrastructure bill signed by President Biden 2021. It provides $7.5 billion to support the construction of EV charging stations. Berube stated that the federal government has begun to distribute that funding to states. This will greatly improve drivers’ experiences. He stated that the network that exists today has not seen the benefits of these funds yet.
Range of charging stations was a top concern that attendees to the auto-show cited. Elka McIntyre, Rockville, Md. said that her husband wanted to purchase a fully electric Kia E6 but she decided against it because their apartment does not have charging. “It’s just not affordable for the average person in the U.S.,” she stated about EVs. “For the average person in the U.S. it’s just not affordable.”[demand]Checking out a blue Chevy Bolt EV, retired D.C. resident Ed Smith said he wants to go electric but is most concerned about cost. “I believe EVs are too expensive right now.” He said that EVs are too expensive, although he likes the technology. He expressed doubt about whether the car will be eligible for the full credit as the Biden administration is still finalizing rules regarding how much of a vehicle’s battery must come from the United States or other friendly countries. Smith stated that the Treasury Department will propose new rules in March.
. “Something similar to this you would have to buy fairly quickly, by March. She said that she was not concerned about finding charging, even though her apartment complex doesn’t have it. “I’m looking to reduce the carbon footprint because I’m just trying to save the environment,” she said. She said that she was not concerned about the charging time and the carbon footprint as she is trying to reduce the environmental impact.
Ricki Tom said that he doesn’t want the car to be plugged in for more than 30-40 minutes during his Florida road trips. After looking at the Hyundai Infinitiq 6, he stated that they are interested in these models but that they just want to see battery technology improve a little. “For a commute car this is perfect,” he added.
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Auto - Show Biz clinic originally published at Auto - Show Biz clinic