When will the United States get its $25,000 electric car?

Bloomberg — The Electric vehicle (EV) prices are falling rapidly in the US.despite which The cheapest models still cost much more than in other countries.

For example, the BYD Seagull sells for around US$10,000 in China, while the Dacia Spring sells from US$20,000 in Europe, the Renault Kwid e-Tech costs US$19,000 in Brazil and the Kia Ray costs US$22,000 in Korea. from the south.

So where is the US$25,000 EV?

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In a nutshell, is about to come.

Although at first glance it may not seem like it: Vehicle prices in the United States overall have risen to about $47,000 on average, and EV prices are even higher. Tesla Model 3the best-selling electric car in that country, starts at approximately US$40,000.

However, given signs of a slowdown in the high-end EV segment, manufacturers are working on an important change to go from luxury to functionality.

He Affordable US$25,000 electric car has become the new goal for the sectorand some models will go on sale within a year.

Whether they manage to win over the new wave of US drivers, and cope with imports from China, currently held back by tariffs that will soon reach 102.5%, will depend on autonomy and functionalities. that they can incorporate.

Below, what we already know about the four projects in development:

General Motors renews the Chevy Bolt

The current American leader in electric vehicle affordability could well be the new electric version of the Chevy Equinox. The SUV comes with 319 miles (513 km) of range for about $42,000, before federal tax credits that can reduce the price by $7,500. Those Incentives will reduce the cost of a base model, available later this year, to below $28,000.

It’s pretty cheap, relatively speaking, but it will soon be surpassed by the updated Chevy Bolt. The new North American president of General Motors (GM), Marissa West, says the Bolt will be “the most affordable vehicle on the market in 2025.”

The original Bolt, which GM discontinued this year, has been the most popular EV alternative to a Tesla in the US for the last seven years. The modest car was known for its mediocre ride quality, limited range and slow charging, but it earned a loyal fan base with an unbeatable starting price of $26,500 before incentives.

The updated Bolt reduces production costs while improving charging times, styling and handling, according to GM. For charging, it will use the new North American charging standard, compatible with Tesla superchargers, and will use low-cost lithium iron phosphate batteries on GM’s new Ultium EV platform.

Pricing and specs haven’t been announced, but it’s a likely contender for best range for the price in the new $25,000 EV class.

Read more: China surpasses the US in global vehicle sales for the first time

Stellantis and the $25,000 Jeep Renegade

Stellantiswhich has been slow to offer electric models in the US, will launch a $25,000 electric Jeep “very soon” as part of a large-scale electric vehicle offensive, CEO said Carlos Tavares at a Bernstein conference on May 29, confirmed that the electric vehicle would take on the Jeep Renegade brand and It would be one of at least three new Jeeps on sale in the US by 2027.

Stellantis brought its first EVs to the United States this year: the $32,500 Fiat 500e subcompact car and the Wagoneer S that starts around $70,000. This new, US$25,000 model, it would be the cheapest Jeep of any type available in the US.lowering the price of the gasoline-powered Compass compact crossover to $26,000.

To survive the transition to EVsTavares said, it is necessary to offer prices comparable to those of gasoline-powered vehicles, even if it means severe cost cuts and lower profits throughout the supply chain during transition years. Achieving economies of scale is key.

“If you ask me what is a [vehículo eléctrico de batería] affordable, I would say €20,000 in Europe and US$25,000 in the United States,” Tavares said. “So our job is to bring the safe, clean, affordable BEV (battery electric vehicle) to the US, at $25,000, we will do it.”

Ford goes back to the drawing board

After be hit by high costs and disappointing demand of its first two electric vehicles, Ford (F) changed course. It cut spending on battery-powered models by $12 billion, postponed battery plants and delayed an F-Series electric pickup truck and a three-row SUV to 2026 and 2027, respectively.

Having decided that large electric SUVs and pickup trucks are too expensive for mainstream customers, it now Ford is thinking smaller.

Two years ago, the company quietly began development of a more affordable line of electric vehicles. The work is being done by a satellite team of engineers in Irvine, California, led by Alan Clarke, who previously led engineering for Tesla’s Model Y SUV.

The first of three new electric vehicles on that platform will arrive at the end of 2026with a starting price of around US$25,000according to a report that first appeared in Bloomberg Businessweek and was later confirmed by CEO Jim Farley.

He said Ford’s new goal is clear: create conventional electric vehicles that are profitable within a year on the market. This is in stark contrast to the losses suffered by their current lineup.

Ford’s internal customer data shows that most EV buyers live in the suburbs, They drive relatively short distances and are more concerned about cost than because of the high-end features, Farley said on an earnings conference call in April.

“That’s where EV adoption will grow the fastest,” he said. “Increasingly, our bet will be on our new small affordable platform developed by our team on the West Coast.”

Read more: Slowdown in electric vehicle sales in the US: a temporary setback?

The mysterious Tesla vehicle

tesla (TSLA), the world’s leading producer of all-electric cars, has been the biggest source of pressure to develop a $25,000 car in the United Statesand also the greatest source of uncertainty.

Elon Musk has publicly talked about a $25,000 Tesla for yearswhile he apparently argues against it in private.

Reports suggest that it told vendors in January to prepare for a mid-2025 launch, and then told its engineers in April to scrap those plans entirely. Musk he flatly denied having closed the programbut later declined to say he remains engaged.

If the goal was to leave everyone wondering, well, mission accomplished.

The crux of the issue is whether Tesla will prioritize manufacturing of small vehicles and low-cost that can compete with the growing sea of ​​Chinese rivals, or if will focus first on building cars for an autonomous taxi let it reach the moon. Only Musk knows why the two are mutually exclusive and, at least so far, he doesn’t share it.

In an earnings call in April, Musk said Tesla has accelerated, rather than delayed, its future product roadmap and that “more affordable models” will arrive in late 2024 or early 2025.

Those models will be produced on Tesla’s existing production lines, rather than using the experimental production method, which Musk calls “boxless,” that was originally planned.

Tesla confirmed last week that three vehicles are being developed: Presumably the Roadster supercar announced in 2017, the driverless Cybercab robotaxi due in August, and the yet-to-be-named economy vehicle.

What will come of all this is anyone’s guess, but if Tesla were able to win over American drivers with a small, light personal vehicle like it did with large electric SUVs, it could do more to transform U.S. roads and reduce road pollution than anything else. the company has done so far.

Except this time, with the $25,000 EV segment, Tesla won’t be the only one trying.

Read more at Bloomberg.com