Archive for April, 2012

Could the Pricetag for EVs Drop Soon?

Posted in: Electric Cars
20 Apr 2012

Electric cars haven’t exactly taken the country by storm (yet), and even with gas hovering around the $4 a gallon mark, sales are sluggish at best. Today, we are miles away from the government’s prediction that there will be 1 million EVs on the road by 2015, although they areoutselling hybrids by nearly a two-to-one margin.

Chevrolet's electric Volt

Part of the challenge with electric vehicles is the cost; an EV costs significantly more than its gas-guzzling counterpart, and many drivers remain unconvinced that the higher up-front price will be offset by fuel savings. We received a little more insight into those costs on Monday when Ford Motor Co. CEO Alan Mulally revealed the cost of electric car batteries are even higher than what had been suspected.

A 23-kilowatt battery pack — which is what you’ll find inside Ford’s electric Focus — sells for around $12,000 to $15,000, he said. That means the battery comprises about one-third of the car’s total pricetag, which is presently $39,200. The good news is, Mulally also indicated that the price of batteries have started to fall … so if those prices drop, logic would follow that the overall sticker price will come down as well.

Mulally isn’t alone in this prediction; Tesla‘s Elon Musk recently alluded to the same belief.  Here’s hoping that they’re both right.  The best bet for putting more EVs on the road is to actually make them affordable for the average American — something that we simply haven’t seen yet.

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