Despite Climate Bill, Electric Cars Will Remain Out of Reach for Many

Well, blow me down! 

At the New York Times, "Electric Cars Too Costly for Many, Even With Aid in Climate Bill ":

Battery-powered vehicles are considered essential to the fight against climate change, but most models are aimed at the affluent.

Policymakers in Washington are promoting electric vehicles as a solution to climate change. But an uncomfortable truth remains: Battery-powered cars are much too expensive for a vast majority of Americans.

Congress has begun trying to address that problem. The climate and energy package passed on Sunday by the Senate, the Inflation Reduction Act, would give buyers of used electric cars a tax credit.

But automakers have complained that the credit would apply to only a narrow slice of vehicles, at least initially, largely because of domestic sourcing requirements. And experts say broader steps are needed to make electric cars more affordable and to get enough of them on the road to put a serious dent in greenhouse gas emissions.

Policymakers in Washington are promoting electric vehicles as a solution to climate change. But an uncomfortable truth remains: Battery-powered cars are much too expensive for a vast majority of Americans.

Congress has begun trying to address that problem. The climate and energy package passed on Sunday by the Senate, the Inflation Reduction Act, would give buyers of used electric cars a tax credit.

But automakers have complained that the credit would apply to only a narrow slice of vehicles, at least initially, largely because of domestic sourcing requirements. And experts say broader steps are needed to make electric cars more affordable and to get enough of them on the road to put a serious dent in greenhouse gas emissions. High prices are caused by shortages of batteries, of raw materials like lithium, and of components like semiconductors. Strong demand for electric vehicles from affluent buyers means that carmakers have little incentive to sell cheaper models. For low- and middle-income people who don’t have their own garages or driveways, another obstacle is the lack of enough public facilities to recharge.

The bottlenecks will take years to unclog. Carmakers and suppliers of batteries and chips must build and equip new factories. Commodity suppliers have to open new mines and build refineries. Charging companies are struggling to install new stations fast enough. In the meantime, electric vehicles remain largely the province of the rich.

To some extent, the carmakers are following their usual game plan. They have always introduced new technology at a luxury price. With time, the new features and gadgets make their way into cheaper cars. But emission-free technology has an urgency that voice navigation or massaging seats did not. Transportation accounts for 27 percent of greenhouse gas emissions in the United States, according to the Environmental Protection Agency. Battery-powered cars produce far less carbon dioxide than vehicles that run on gasoline or diesel. That’s true even accounting for the emissions from generating electricity and from manufacturing batteries, according to numerous studies.

Only a few years ago analysts were predicting that electric vehicles would soon be as cheap to buy as gasoline cars. Factoring in the savings on fuel and maintenance, going electric would be a no-brainer.

Instead, soaring prices of commodities like lithium, an essential ingredient in batteries, helped raise the average sticker price of an electric vehicle by 14 percent last year to $66,000, $20,000 more than the average for all new cars, according to Kelley Blue Book.

Demand for electric vehicles is so strong that models like the Ford Mach-E are effectively sold out, and there are long wait times for others. Tesla’s website informs buyers that they can’t expect delivery of a Model Y, with a purchase price of $66,000, until sometime between January and April 2023.

With so much demand, carmakers have little reason to target budget-minded buyers. Economy car stalwarts like Toyota and Honda are not yet selling significant numbers of all-electric models in the United States. Scarcity has been good for Ford, Mercedes and other carmakers that are selling fewer cars than before the pandemic but recording fat profits.

Automakers are “not giving any more discounts because demand is higher than the supply,” said Axel Schmidt, a senior managing director at Accenture who oversees the consulting firm’s automotive division. “The general trend currently is no one is interested in low prices.”

Advertised prices for electric vehicles tend to start at around $40,000, not including a federal tax credit of $7,500. Good luck finding an electric car at that semi-affordable price.

Ford has stopped taking orders for Lightning electric pickups, with an advertised starting price of about $40,000, because it can’t make them fast enough. Hyundai advertises that its electric Ioniq 5 starts at about $40,000. But the cheapest models available from dealers in the New York area, based on a search of the company’s website, were around $49,000 before taxes.

Tesla’s Model 3, which the company began producing in 2017, was supposed to be an electric car for average folks, with a base price of $35,000. But Tesla has since raised the price for the cheapest version to $47,000...

Shoot, $35,000's still not cheap. Some schlup from the barrio, South Central, or any urban 'hood near you ain't buying this car, or any EV, for that matter. These cars are for the leftist climate change psychos. Teslas are everywhere in Irvine. They're boring af. They all look the same. Nothing against them in principle. But if that's your status symbol gtfo. (*Eye-rol*.)

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