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That means, a drop of the actual value of cars on the market. Why shall someone buy a ev now knowing that its value is 5 years is zeroed?
I hope the prices will go down in BC Canada. Most good electric vehicles start at 55k I want to buy one but that is way to much money.
When they come with a lower sales tag then I will celebrate. Remember how technology was suppose to make us work less, not cram more work into the same number of hours?
To be fair, EV prices are way down this year. Tesla prices are at or below similar ICE vehicles right now in most countries.
As an example, the Chevy ICE blazer premier trim AWD and convince package is $47.05K! The Tesla model Y long range is $49K. It has a hell of a lot of power too and handles so much better. The fuel savings in one year is enough to bridge the gap. If you are eligible for the tax credit, it’s now significantly lower than ICE SUVs! If you think a Model Y should compete higher up, a BMW x4 starts at $55K…
Now this isn’t every vehicle segment and not every electric car is a Tesla. Unfortunately, most of the BEVs offered are on the higher end of the market in general. But the prices are so much closer to ICE version compared to last year. And yes, they still need to go down. (And likely will partially due to battery prices.)
Good report, thanks for sharing!
Faster than expected by whom? Not Tony Seba to be sure.
Don’t tell the popular news media this! They’ll lose their old money sponsors!
this article was literally posted by an old money sponsor lol
I hope the popular news media is aware their sponsors are gonna go broke! They are betting their long term reputation on needs and cash they are getting from the Knickerbocker Ice Company!
As Cathie woods pointed out, if you simply double production you get one level of price reduction. If you also work hard on developing the production methods, you get more of a reduction.
Does this mean you can get a new battery for those old Nissan Leafs for cheaper now?
2012 Leaf 24kwh battery had a list price of $12,000, 2022 Bolt 64kwh battery had a list price of $12,400, with inflation you get a battery that costs less and with about triple the range.
That’s how technology works, VCRs were $1000 when they came out, $399 for a dvd player.
A New 24 kWh pack from the Nissan parts department is still around $10,000. Just the part. No markup or I stall labor.
Even the cheapest aftermarket, assembled 40 kWh Leaf battery that is US based is still a minimum of $13,000 installed.
I haven’t priced a 62 kWh Nissan pack at the dealership yet, but my guess is it is closer to $19,000?
If I can walk into the Chevy parts department and buy a 64 kWh pack for only $12,400 I’d be (happily) surprised. Because that doesn’t sound near what my shop was previously quoted. Maybe I’ll have to check tomorrow and report back.
Interesting they assume the profit levels decrease significantly from CY23 to CY24? Whats the basis for that assertion? Seems like twisting the GR&A to accentuate GS’s claims.
This is abviously not equally spread across the industry. Some companies are seeing huge declines in cost because they invested years ago, and others aren’t seeing costs drop much at all, because they thought they could just buy batteries and haven’t invested in their own manufacturing. Some will float, others will sink.
Wow, the submission is 2h old and we already got people mentioning Tony Seba and Cathie Woods.
Not even what the article is saying. Title says falling faster than expected, but they rose in 2022 and slightly fell in 2023 but still more expensive than in 2021 and 2020. Than the article shows a graph of expected battery prices in 2024 and onwards…which is the EXPECTED fall.
Poorly written title at best, misleading more likely.
Thanks.
Other part of this is that as we get a bigger and better charging infrastructure we don’t need to worry about always expanding range.
It’ll of course happen naturally.
But this can lead the way for smaller more affordable vehicles :)
Double compounding win.