Electric cars are suddenly becoming affordable

Electric Vehicles Becoming More Affordable

Alex Lawrence, a dealer in Salt Lake City who specializes in used electric vehicles, has seen a change over the past year in the kinds of customers who are coming into his showroom. They used to be well-heeled professionals who could drop $70,000 on a Rivian luxury pickup truck.

Recently, Lawrence said, customers have been snapping up used Teslas for a little more than $20,000, after applying a $4,000 federal tax credit.

“We’re seeing younger people,” Lawrence said. “We are seeing more blue-collar and entry-level white-collar people. The purchase price of the car has suddenly become in reach.”

Regarded by conservative politicians and other critics as playthings of the liberal elite, EVs are fast becoming more accessible. Prices are falling because of increased competition, lower raw-material costs and more efficient manufacturing. Federal tax credits of up to $7,500 for new EVs, often augmented by thousands of dollars in state incentives, push prices even lower.

Improving Technology and Market Forces

At the same time, technology is improving quickly and making EVs more practical. Cars that can travel more than 300 miles on a fully charged battery are becoming common, and charging times are dropping below 30 minutes. The number of fast chargers, which can top up a battery in less than half an hour, grew 36% from April 2023 to this past April.

Carmakers including Tesla, Ford, General Motors and Stellantis, owner of Jeep, have announced plans for EVs that would sell new for as little as $25,000.

“The EV market has hit an inflection point,” said Randy Parker, CEO of Hyundai Motor America, which will begin producing EVs at a factory in Georgia by the end of the year. “The early adopters have come. They’ve got their cars. Now you’re starting to see us transition to a mass market.”

Impact on Sustainable Development Goals (SDGs)

1. SDG 7: Affordable and Clean Energy – The affordability of electric vehicles is contributing to the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all.
2. SDG 9: Industry, Innovation, and Infrastructure – The advancements in technology and manufacturing processes for electric vehicles align with the goal of promoting inclusive and sustainable industrialization.
3. SDG 11: Sustainable Cities and Communities – The growth of the electric vehicle market supports the development of sustainable transportation systems in cities, reducing air pollution and improving urban environments.
4. SDG 13: Climate Action – The increased adoption of electric vehicles plays a crucial role in reducing greenhouse gas emissions and combating climate change.

Challenges and Future Outlook

EVs, sales of which have slowed in recent months, are still more expensive than gasoline models, costing an average of $55,252 in the United States in April, according to estimates by Kelley Blue Book. That is a decline of 9% from April 2023 but still about $6,700 more than the average for all vehicles.

But Slowik’s group estimates that cars and SUVs capable of traveling 400 miles on a full battery will cost less than cars with internal combustion engines in 2030, even before taking into account government subsidies. (Pickup trucks, which require bigger batteries, will take a little longer, not reaching parity for 400-mile models until 2033.)

Those calculations do not take into account lower fuel and maintenance costs that strengthen the financial argument for EVs. Electricity is almost always cheaper per mile than gasoline, and battery-powered vehicles don’t need oil changes, engine air filters or spark plugs. For people who drive a lot, EVs may already be a better deal. At the same time, some automakers are offering strong discounts on EV models as an enticement for buyers.

Although prices are clearly trending downward, there are risks. China supplies more than half of the lithium-ion batteries used in cars sold in the United States, according to Interact Analysis, a research firm. Those batteries will become more expensive because the Biden administration announced in May that it would raise tariffs on them to 25% from 7.5%.

Many companies are building battery factories in the United States and Canada, but most of these won’t produce enough batteries to replace China for several years.

Raw materials are another risk. The price of lithium and other materials required for batteries has plunged in the past 12 months, making EVs cheaper. But commodity prices could soar again.

The recent slowdown in the growth of EV sales has prompted Tesla, Ford and others to delay plans to expand manufacturing. But many analysts expect sales to pick up as a glut of models pushes down prices and as the charging network grows. High prices and the fear of not being able to find a place to recharge are the two biggest reasons people hesitate to buy an EV, surveys show.

For many people, the car’s price is not the only expense to consider. People who live in apartments often depend on public charging plugs. Public charging, besides being less convenient, tends to be more costly than charging at home.

Still, the forces pushing prices down are powerful. Manufacturing costs are dropping as traditional carmakers, who were slow to sell EVs, start to apply their decades of experience with mass production to the new technology.

Later this year, for example, General Motors will begin selling an electric version of its Chevrolet Equinox SUV that will have a range of more than 300 miles and sell for less than $30,000 after the $7,500 federal tax credit. And the company plans to sell an even cheaper car, a new Chevrolet Bolt, next year.

This article originally appeared in The New York Times.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

The article discusses the increasing accessibility and affordability of electric vehicles (EVs), which aligns with SDG 7’s goal of promoting affordable and clean energy. It also mentions the technological advancements and improvements in charging infrastructure, which are related to SDG 9’s focus on industry, innovation, and infrastructure. The article further highlights the role of EVs in combating climate change, connecting to SDG 13’s objective of taking urgent action to combat climate change. Lastly, the article touches upon the potential impact of EV adoption on cities and communities, linking to SDG 11’s aim of creating sustainable cities and communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
• SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
• SDG 11.6: Reduce the adverse per capita environmental impact of cities.
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.

Based on the article, the targets mentioned above can be identified. The increasing adoption of EVs contributes to a higher share of renewable energy in the global energy mix (SDG 7.2). The advancements in EV technology and charging infrastructure represent an upgrade to sustainable infrastructure (SDG 9.4). The transition to EVs also helps reduce the adverse environmental impact of cities by reducing emissions (SDG 11.6). Lastly, the promotion of EVs aligns with integrating climate change measures into national policies and planning (SDG 13.2).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides indicators that can be used to measure progress towards the identified targets:

• Share of renewable energy in the global energy mix (SDG 7.2)
• Number of charging stations and fast chargers (SDG 9.4)
• Reduction in emissions from transportation (SDG 11.6)
• Inclusion of climate change measures in national policies and planning (SDG 13.2)

The article mentions the growth in the number of fast chargers, indicating progress in infrastructure development for EVs (SDG 9.4). The reduction in emissions from transportation, facilitated by the adoption of EVs, can be used as an indicator for SDG 11.6. Lastly, the article highlights the Biden administration’s aim to combat climate change through EV adoption, indicating the inclusion of climate change measures in national policies and planning (SDG 13.2).

4. Table: SDGs, Targets, and Indicators

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Fuente: sltrib.com

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