Why Electric Cars Are Already Cheaper Than Internal Combustion Vehicles
That’s all it’ll take.
Even less than that, actually.
According to Volvo CEO Jim Rowan, by 2025, electric vehicles will reach price parity with internal combustion vehicles.
This isn’t surprising, as electric vehicle prices have fallen over the past 10 years or so as battery production prices have plummeted nearly 90%, according to Bloomberg.
That being said, for the first time in more than a decade, battery prices have inched up in 2022.
Researchers at Bloomberg expect to see the average battery pack rise to $135/kWh this year. In order to get to that price parity point with internal combustion vehicles, that price must fall to $100/kWh.
It was estimated that battery pack prices would fall to $92/kWh by 2024. Now, that is unlikely to happen until 2025 or 2026, depending upon supply chain strains.
Still, the EV segment does continue to enjoy consumer demand increases, and, despite a short-term increase in battery prices, the long-term outlook remains the same: Electric vehicles will see price parity with internal combustion vehicles before 2030.
And this doesn’t even include savings for consumers directly related to operational costs.
Electric Vehicles Already Win on Price
The obvious cost savings right off the bat are fuel costs.
Generally speaking, “fueling” an electric vehicle costs about 3.5 times less than fueling an internal combustion vehicle, although much of this depends on where you live and how much you pay for electricity.
Either way, electric vehicle drivers do save a fair amount of cash on fuel costs.
According to the Federal Highway Administration, U.S. commuters drive an average of 14,263 miles per year.
Today, we’re paying an average of roughly $3.77 per gallon, with the average fuel economy of passenger cars coming in at around 24 miles per gallon. That means the average U.S. commuter spends about $2,240 per year on gasoline, or $18,000 over the course of eight years (the average amount of time most U.S. car owners keep their cars before getting a new one.) Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
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Using the same number of miles driven, the average U.S. commuter using an electric car will spend about $640 per year for electricity, or $5,120 over the course of eight years
The total fuel cost savings over eight years is $12,880.
Then figure in repair and maintenance costs, which are much lower with electric vehicles because there are just fewer moving parts. No oil changes or spark plug replacements, longer-lasting brakes, etc.
According to Consumer Reports, electric vehicle drivers save an average of $4,600 on repair and maintenance costs alone. Add that to the $12,880 savings on fuel costs, and total savings come to $17,480. That’s not trivial, and now there’s a new electric car about to come on the market that could completely eliminate fuel costs altogether.
This Electric Car Doesn’t Even Need to Be Plugged In
If you’re a regular reader of these pages, you may have heard me mention this before: a new electric car that has solar cells integrated into the body of the vehicle.
With those solar cells, the vehicle can charge directly from the sun. And while you’ll only get up to around 22 miles of range from those solar cells, by 2030, that number could more than double, which would more than cover the daily commuting needs of more than 70% of all U.S. drivers.
With a fully solar-powered electric vehicle (used for daily commuting), “fuel” costs could be eliminated entirely, thereby bringing the total savings of electric car ownership to $22,600.
Oh, and by the way, that solar-powered electric vehicle is expected to retail for about $31,000.
Deduct that $22,600 in fuel, maintenance, and repair costs, and you’re now looking at $8,400 to buy, operate, and maintain this vehicle for eight years.
To put that in perspective, such a vehicle could end up costing you less than $90 per month to own and operate. Compare that with the average car loan payment, which is around $600 per month, according to Bankrate — and that $600 does NOT cover fuel and maintenance.
To say this new solar-powered vehicle is a game-changer would be an understatement.
While Tesla (NASDAQ: TSLA) was certainly a game-changer when it came to electric vehicles, producing an affordable electric vehicle that will ultimately cost you nothing to charge is the next game-changer in the evolution of electric cars.
And make no mistake: The company behind it, which owns the technology, is going to dramatically disrupt the entire passenger vehicle market. Without a doubt, this is a Model-T moment, and you better believe we’re looking to make a boatload of cash from this thing.
That's why I put together this short presentation on this new solar-powered electric car and the company that makes it.
You can actually buy shares of it right now.
I should point out that production is set to begin next year. Once that happens, it’s off to the races.
In other words, to get the most bang for your buck, you’ll have to get in now.
Incidentally, this company already has over 22,000 pre-orders (more than $600 million worth of pre-orders), and they continue to roll in.
I said it before, and I’ll say it again: This is a Model-T moment, and, unless you hate money, you should absolutely have this stock on your radar.
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor's page.
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