Biden’s push for electric cars: $ 174 billion, 10 years and a bit of luck

But production is only one piece of the puzzle. The transition to gasoline-powered vehicles is based on consumers’ belief in the benefits of electric vehicles. It wasn’t easy because the cars have higher sticker prices even though researchers say they cost less to own. Electricity is cheaper per kilometer than gasoline, and electric vehicles require less routine maintenance – there is no oil to change – than cars with combustion engines.

The highest cost of an electric car comes from the battery, which can cost around $ 15,000 for a mid-size sedan. This cost has declined and is expected to continue to decline significantly thanks to improvements in manufacturing and technical progress. But some researchers believe a major technological breakthrough will be needed to make electric cars much, much cheaper.

“There’s a good feeling that at least for the next five years or so, they’re going to keep going down, but then are they going to stabilize or are they going to keep going down? Joshua Linn, a professor at the University of Maryland and a senior researcher at Resources for the Future, an environmental nonprofit, spoke about the costs of batteries. “It won’t be enough, so it has garnered a lot of attention for infrastructure. “

The federal government and some states already offer tax credits and other incentives for the purchase of electric cars. But the main federal incentive of this type – a tax credit of $ 7,500 for the purchase of new electric cars – begins to disappear for cars once an automaker has sold 200,000 electric vehicles. Buyers of Tesla and GM electric cars, for example, are no longer eligible for this tax credit. but Ford and Volkswagen electric car buyers are doing it.

Mr Biden described his incentives for buying electric cars as discounts available at the “point of sale,” which is presumably at dealerships or when ordering cars online. But the administration has not released details of the extent of these discounts and the vehicles to which they would apply.

Another big concern is the load. People with dedicated parking spaces typically charge their EVs overnight at home, but many people who live in apartments or have to travel longer distances have to use public charging stations, which are still largely outdated in the world. number by gas stations.

“The top three reasons cited by consumers for not purchasing electric vehicles are the lack of charging stations, the time to recharge and the cost of electric vehicles,” said Sam Abuelsamid, analyst at Guidehouse Insights. “They seem to really focus on all three. So overall, it looks very promising.

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