In virtually all industries, it’s a fact of life that new technologies are always far more expensive initially. It’s only when the early R&D work is done and products scale up on the market that pricing comes down. Personal computers are a case in point, high-end televisions another. Recall that at the turn of the 2000s, the average 42-inch plasma TV cost $10,000.
The same story is playing out with electric vehicles, and it explains why government choose to implement incentives programs to boost sales. Gradually, productions costs are coming down, in part because production of batteries and electric motors is scaling up like never before.
Industry watchers have been waiting for signs of a tipping point for EVs, in other words the day when their selling prices will be on a par with equivalent gasoline-powered models.
When that happens, the consensus view is that consumers will turn massively towards electrified vehicles.