Elon Musk's ambition to replicate
Henry Ford
's democratization of car ownership through a $25,000 Tesla is reportedly taking a backseat to a focus on
self-driving robo-taxis
, as per sources cited by Reuters. While Musk refuted these claims via his X.com platform, stating that
Reuters
was spreading falsehoods, he did not specify any inaccuracies.
This uncertainty surrounding Tesla's strategy, coupled with delays in
EV
projects at rival automakers, presents challenges for potential EV buyers and policymakers within the
Biden administration
's
environmental agenda
.
According to Peter Slowik, U.S. passenger vehicles lead at the International Council on Clean Transportation, expanding the availability of EV models across various segments and price points is a crucial precursor to transitioning to EVs on a larger scale.
Despite a decline in new EV prices in the United States, they still hover around $5,000 higher than the average transaction price for a new vehicle. Elon Musk's initial goal in 2006 was to create a profitable EV priced at $25,000, significantly lower than the current EV average.
While there are
affordable EV options
available, such as China's BYD Dolphin and Seagull EVs, priced as low as $13,865 and $9,700 respectively, these vehicles often lack the range and features demanded by Western markets.
The increasing market presence of Chinese automakers poses a threat to established players like Tesla and Ford, prompting initiatives like Ford's "skunk works" project to develop a low-cost EV architecture.
The absence of competitively priced EVs could jeopardize the Biden administration's objective of having electric vehicles account for more than half of new vehicle sales by 2030, according to industry experts.
Despite concerns about affordability, automakers have been phasing out inexpensive vehicle options from their lineups for years. Data indicates a decline in the availability of new vehicles priced below $20,000, with General Motors discontinuing its cheapest EV, the Chevrolet Bolt, last year.
In the interim, consumers may find $25,000 EVs on used car lots, offering a more accessible entry point into the electric vehicle market.
English (US) ·