The large, costly battery that takes the place of an internal combustion engine make EVs more expensive. But there are other factors driving up the price.
You might want to buy an electric car, but the price gives you a severe case of sticker shock. It leaves you wondering, “Why is the cost so much higher than gas cars?”
People are also reading… But there are other factors driving up the price of EVs, says Liz Najman, a climate scientist and communications and research manager at Recurrent Auto, an EV research and analytics firm focused on the used-vehicle market. She cites continuing supply-chain problems, low inventories and the fact that EVs require 10 times more semiconductors than a gas car.
The average price of a new EV is $64,249, while a new gas car is $48,281, nearly a $16,000 difference, Najman says. This enormous difference reflects the market reality that most available EV models are still higher-end cars. “If you look at the total cost of ownership, even over a few years, EVs are very competitive with gas cars,” Najman says. “And, the higher the price of gas goes, the quicker EVs catch up.”
Rebates. Some state and local governments offer rebates. For example, the California Air Resources Board offers a rebate ranging from $1,000 to $7,000 to anyone who purchases or leases an EV. Lower cost per mile. Recurrent data shows that EVs cost less than 8 cents a mile to drive compared with 9.6 cents for gas cars.
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