Is a Massive Drop in Electric Vehicle Prices Coming?
This page is translated from the original post "Vers une chute massive du prix des voitures électriques ?" in French.
- 23/07/2023 16:49
The commodity prices have been falling since January 2023, and the impact on new car prices is expected to be felt.
Recently, Elon Musk promised a new wave of price reductions to support Tesla’s strong sales. The competition has not responded, as if they too are holding back. And for good reason: since the beginning of 2023, the cost of raw materials has declined significantly.
The war in Ukraine and the Covid pandemic are no longer strong enough arguments to fuel speculation, and competition is regaining ground. Over the past six months, the components that make up an electric car battery have plummeted in price.
For example, the price of nickel has fallen by 23.5%, lithium by 22.4%, and cobalt has dropped 33.7% over 12 months. Given that the cost of a battery now accounts for between 30% and 50% of an electric vehicle’s price, the upcoming price revisions could be very substantial.
The competition will benefit consumers and will very likely motivate the French government to lower the threshold for activating the eco bonus, set at 47,000 euros including VAT in 2023.
READ ALSO: Tesla slashes its Model 3 by up to 29%. Here’s why
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