Electric Vehicle Manufacturers Forced to Slash Prices as Consumers Send a Clear Message
Demand for Electric Vehicles Plummets, Leading to Price Cuts and Incentives
The Wall Street Journal reported that electric vehicle manufacturers and sellers are facing a decline in sales and are now resorting to price cuts and other incentives to address the issue of unsold cars.
According to Edmunds analyst Joseph Yoon, there was a miscalculation about the demand and desirability of electric vehicles.
To combat the waning demand, companies like Hyundai Motor and Ford Motor are offering cash-back offers of up to $7,500 for select vehicles. Ford has also reduced the price of its Mustang Mach-E SUV.
Other manufacturers are providing attractive leasing options, including lower installments and shorter lease lengths.
Tesla has also joined the price-cutting trend, reducing prices on some models by around a third.
Tesla Model 3 is now CHEAPER than a Toyota Prius.
Tesla has just lowered lease pricing for their Tesla Model 3 and Y models in the US.
The Tesla Model 3 is now $329 per month with $4,500 down, 36-month term, and 10,000 miles per year.
The Tesla Model Y is now $399 per month… pic.twitter.com/FkEUMU6xbz
— Farzad Mesbahi (@farzyness) October 12, 2023
In response to competitive realities, Fisker announced a price reduction of $7,500 on its recently launched Ocean Extreme SUV.
Experts believe that the price cuts reflect consumers’ reluctance to pay premium prices for electric vehicles.
Data from Edmunds revealed that customers received an average discount of $2,000 and paid $930 less than the list price when purchasing an electric vehicle in September.
However, there are concerns that the price reductions may not ensure long-term sustainability.
A report from the Texas Public Policy Foundation found that without subsidies, the true cost of fueling an electric vehicle amounts to $17.33 per gallon of gasoline.
The study from the Texas Public Policy Foundation (TPPF) found, for example, that the average 2021 electric vehicle “would cost $48,698 more to own over a 10-year period without $22 billion in government favors given to EV manufacturers and owners.” https://t.co/bu1hwp7Sma
— Bud Brigham (@bmbrigham) October 27, 2023
The study emphasized that the economic viability of electric vehicles relies heavily on subsidies and regulatory credits.
Despite the price cuts, concerns remain about the long-term sustainability of the electric vehicle market.
The post Electric Vehicle Manufacturers Forced to Slash Prices as Consumers Send a Clear Message appeared first on The Western Journal.
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