The prices of the electric vehicles are falling rapidly in the United States, but cheaper models They are still much more expensive than those offered by other countries. The BYD Seagull sells for around $10,000 in China, the Dacia Spring starts at $20,000 in Europe, the Renault Kwid e-Tech costs $19,000 in Brazil and the Kia Ray costs $22,000 in South Korea.
So where is the American EV $25,000?
In short, it’s coming soon. Although at first glance it may not seem like it: the prices of American vehicles They have generally skyrocketed to around $47,000 on average, and prices for electric models are even higher. Even after the price cuts, the electric sedan best-selling in the country, the Model 3 teslastarts around $40,000.
But with signs of slowing growth in the premium electric vehicles, manufacturers have been working on a substantial shift from luxury to practicality. He economical electric car $25,000 is the industry’s new target, and several models will hit the roads within a year.
That they can win over the next wave of American car owners GO – and defend itself against Chinese imports, currently held in check by tariffs that will soon be 102.5% – depends on the autonomy and the benefits they may incorporate.
Here’s what we know about the four ongoing initiatives:
The new electric version of the Chevy Equinox could become the most affordable electric vehicle in the United States. He SUV offers 51 kilometers of autonomy for about $42,000, before the federal tax credits which can reduce the price by $7,500. These incentives will reduce the cost of the base model, available later this year, to below $28,000.
It’s pretty cheap, relatively speaking, but it will soon be surpassed by the Chevy Bolt updated. The new North American president of G.M.Marissa West says the Bolt will be “the most affordable vehicle on the market by 2025.”
The original Bolt, which GM discontinued this year, has been the most popular EV alternative to a tesla in the United States for the last seven years. The understated car was known for mediocre ride quality, limited range and slow charging, but it won over a loyal fan base with an unbeatable starting price of $26,500 before incentives.
The updated Bolt reduces production costs while improving performance loading times, styling and handling, according to GM. For charging it will use the new North American charging standard, compatible with the superchargers of Tesla, and will use lithium iron phosphate batteries low cost on the new platform Ultium EV from GM.
Price and specifications have not been announced, but it is likely to be one of the contenders for the best range for its price in the new category of $25,000 electric vehicles.
Stellantiswhich has been slow to offer electric models in the United States, will launch “very soon” a electric jeep of $25,000 as part of a large-scale offensive of electric vehicles, as stated by its CEO, Carlos Tavares, in a Bernstein conference on May 29. Stellantis later confirmed that the GO would face the brand Jeep Renegade and it would be one of at least three new Jeeps on sale in the US in 2027.
Stellantis brought its first GO to the country this year: the subcompact Fiat 500eof $32,500, and the Wagoneer S, which starts at around $70,000. Priced at $25,000, the new model would be the cheapest Jeep of any type available in the U.S., below the Compass compact crossover of gasoline, which costs $26,000.
Surviving the transition to electric vehicles, Tavares said, requires offering prices comparable to gasoline vehicles, even if that means steep cost cuts and fewer profits across the supply chain during transition years. Achieving economies of scale is key.
“If you ask me what is a battery electric vehicle affordable, I would say 20,000 euros in Europe and 25,000 dollars in the United States,” Tavares said. “So our job is to bring the BEV safe, clean and affordable to the US – $25,000 – we will do it.”
After being hurt by high costs and disappointing demand for its first two electric vehicles, ford he turned back. He cut spending on battery-powered models by $12 billion, postponed batteries and delayed a electric pick-up from the series F and a Three-row SUV until 2026 and 2027, respectively.
After deciding that the great SUV and electric trucks are too expensive for the general public, Ford is thinking about smaller models. Two years ago, the company quietly began the development of a line of electric vehicles more affordable. The work is being done by a satellite team of engineers in Irvine, California, led by Alan Clarke, who previously led the engineering of the Model Y SUV of Tesla.
The first of three new electric vehicles of this platform will arrive at the end of 2026, with a starting price of about $25,000, according to information published for the first time in BloombergBusinessweek and later confirmed by Jim Farley, CEO of ford. Farley said Ford’s new goal is clear: create electric vehicles that are profitable within a year on the market. This contrasts with the losses of its current range.
Ford’s internal customer data shows that the majority of Ford buyers GO They live in the suburbs, travel relatively short distances and care more about cost than high-end features, Farley said at an earnings call in April. “That is where the adoption of electric vehicles It will grow faster,” he said. “Increasingly, our bet will be on our new small, affordable platform developed by our team on the West Coast.”
teslathe world’s largest manufacturer of electric cars, has been the biggest source of pressure to develop a $25,000 car in the United States, and also the biggest source of uncertainty. Musk has been speaking publicly for years about a tesla of $25,000, while privately he appears to be against it.
Reports suggest that in January it told vendors to prepare for a mid-2025 launch, and in April it told its engineers to scrap those plans entirely. Musk flatly denied closing the program, but later declined to say that he remains committed. If the objective was to leave everyone with their mouths open, mission accomplished.
The crux of the matter is whether tesla will give priority to the manufacture of small vehicles low-cost vehicles that can compete with the growing number of Chinese competitors, or whether it will focus first on making cars for a self-driving taxi. Only Musk knows why the two things are mutually exclusive and, at least for now, he doesn’t share it.
On 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. These models will be manufactured in the current production lines of Tesla, instead of using the method of experimental productionwhich Musk calls “unboxed”, initially planned.
Tesla confirmed last week that there are three vehicles in development: presumably the Roadster supercar announced in 2017, the Cybercab driverless robotaxi which will be presented in August and the economical vehicle still no name.
Nobody knows what will come of all this, but yes tesla was able to win over American drivers with a personal vehicle light and tiny the same way he did with the big ones Electric SUVscould do more to transform America’s roads and reduce the road pollution than anything else the company has done so far. Except this time, with the segment of the $25,000 EVTesla won’t be the only one trying.
(c) 2024, Bloomberg
