Electric Vehicles: A Look at the EV Industry and Market Trends
Electric vehicles (EVs) have rapidly gained popularity across the US and Europe. Encouraged by government incentives and subsidies funded by federal tax dollars, the EV industry has experienced significant growth. As of 2022, the number of registrations of newly sold electric vehicles globally has increased from 3 million five years ago to 15 million, demonstrating an increasing trend towards green transportation options.
Market Share of Electric Vehicles in the US
Tesla leads the EV sales in the US, with a market share of 64.6% last year. Ford had 7.5% of the US market and GM had 4.8%. However, the purchasing price of EVs is a significant consideration when making the decision to buy an electric vehicle. Tesla decreased the price of its vehicles in March 2023, but they remain higher than gasoline-powered vehicles. For instance, the Tesla Model 3’s list price is $42,990 compared to the Model Y at $54,990, and the Model S sells for $89,900, according to its web page on Wednesday.
Chevrolet EV Blazer lists from $45,000 to $67,990, compared to the gasoline-powered Blazer of $35,000 to $44,000. The Chrysler Pacifica EV costs $48,478 compared to the gasoline version at $37,095.
Lowering the Price of EVs
According to a recent article in The Wall Street Journal entitled “Electric Shock: Plug-Ins Get Cheaper,” batteries, the most expensive component, “are getting cheaper, bringing down overall prices.” In AAA Explorer magazine, author Peter Bohr writes about EVs and their batteries. “Indeed, battery packs can be expensive. Like the engine of a conventional gasoline vehicle, the battery pack is the heart of an electric vehicle.”
EV automakers typically warrant batteries for 8 to 10 years or 100,000 miles, and over time batteries become less efficient. Pack replacements “can start at around $5,000 for a Nissan Leaf battery, rising to perhaps more than $20,000 for a Tesla,” Bohr wrote.
In addition, charging a battery pack in hot weather can accelerate unwanted chemical reactions that permanently degrade battery materials and lead to lithium loss. Owners should avoid completely draining the battery pack or charging it to very high levels. According to Bohr, “A 100% charge is okay if you drive the car immediately, but not if it’s left to sit, especially in hot weather. A state of charge between 30% and 80% is best.”
How to Recharge EVs
EVs must be recharged, and this can be accomplished at home by installing the proper equipment or at a Level 3 DC fast charger. Providerpower.com computed the cost of recharging at home at about $41 in electricity per month. They assumed an electricity cost of $0.12 per kilowatt-hour and EV usage of 30 kWhs per 100 miles with average travel of 1,125 miles per month.
Challenges for the EV Industry
The EV industry faces a range of challenges such as battery problems, safety concerns, and navigating new supply chains. However, the industry has shown remarkable growth in recent years and continues to innovate to meet consumer demands.
The Future of EVs
As the demand for sustainable transportation increases, EVs are likely to become an even more important part of the automobile industry. While the current purchasing price of EVs remains a significant hurdle, the decreasing cost of batteries and increased production may help lower prices in the future.