Electric Vehicles Approach a Critical Tipping Point in Adoption
Historically, electric vehicles have been associated with luxury vehicles and wealthy customers. It's a market defined primarily by Tesla and its next-generation cars, which often cost between $45,000 and $70,000 each. This has let electric cars push technological boundaries and carve out a cultural niche. However, with price points at the top of the market, these vehicles have remained out of reach for most consumers.
In recent months, many car companies have begun announcing changes to their lineups that emphasize electric cars as the way of the future. For some companies this means introducing electric versions of their most popular models, such Ford Motor's fully electric Ford F-150 Lightning scheduled for release in 2022. Other companies, such as Volvo, have taken the bolder step of committing to a majority or entirely electric fleet by the end of the decade.
Prices are central to this electric future. Car companies haven't just announced fleets of new vehicles. They're announcing cars at price points far closer to the middle of the market. Tesla has begun marketing its Model 3 for $38,000. Nissan has advertised its all-electric Leaf for $32,000 and Mini has promised the Cooper SE for $30,000. By contrast, according to Kelley Blue Book, the average price for a new car is typically almost $41,000.
