EVs No Longer A Viable Alternative

One of the key reasons why people made the switch to an electric vehicle was the more favorable cost of ownership. Not only did a battery charge cost a lot less than filling up the tank of a similar car, but the maintenance was also cheaper. But then the world went crazy and now people started questioning the economics of owning an electric vehicle.

When the gas prices started to rise a couple of months ago, a lot of ICE car owners considered switching to an electric vehicle. In fact, both statistics and carmakers indicated an increase in EV orders specifically because of the high gas prices. But things have changed, not least because the increased demand has put pressure on the market. Soon, not only did EV prices increase significantly, but the operating costs also went up.

Tesla, the company that sells the most EVs in the U.S., has aggressively raised prices in the past months. The main reason was raw materials scarcity and price spikes, but the high demand also played a role. This allowed Tesla to post the biggest profit in history in the first quarter of the year and will most likely repeat the claim for the second quarter too. This proved skeptics saying it’s impossible to make a profit from EVs were all wrong. Tesla is one of the most profitable car companies in the world.

Apart from becoming more expensive, the EVs have also lost their cheap operating costs appeal. Electricity prices have spiked and Supercharging costs often shocked Tesla owners. Tesla historically said it does not make a profit from selling electricity to its customers, but Tesla owners faced increased prices nevertheless.  READ MORE...