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Why EVs Might Never Reach Price Parity With Conventional Cars Lawrence Ulrich © Tesla When will electric cars be priced the same as the most affordable internal-combustion models? You might not like the answer.
The sighting of price parity between EVs and internal-combustion cars has become the auto industry’s white whale. It’s the buzzword that’s launched a thousand academic papers, Wall Street analyses and media blandishments, assuring us we’re this close to EVs that cost no more and no less than traditional automobiles.
But price parity has become a textbook case of garbage-in-garbage-out, of getting the wrong answers because you’re asking the wrong questions. It’s an illusion for any number of reasons, beyond government EV subsidies that put a thumb on the market scale. Let’s start with some easy ones: Whatever made you think the auto industry wants to sell you cheaper cars? As a corollary, who convinced anyone that people will buy cars
Why EVs Might Never Reach Price Parity With Conventional Cars
When will electric cars be priced the same as the most affordable internal-combustion models? You might not like the answer. Tesla
The sighting of price parity between EVs and internal-combustion cars has become the auto industry’s white whale. It’s the buzzword that’s launched a thousand academic papers, Wall Street analyses and media blandishments, assuring us we’re this close to EVs that cost no more and no less than traditional automobiles.
But price parity has become a textbook case of garbage-in-garbage-out, of getting the wrong answers because you’re asking the wrong questions. It’s an illusion for any number of reasons, beyond government EV subsidies that put a thumb on the market scale. Let’s start with some easy ones: Whatever made you think the auto industry wants to sell you cheaper cars? As a corollary, who convinced anyone that people will buy cars based on maximum utility, economic