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People get the cause and effect of fancy EVs backwards. To build an EV you have to spend $10-$20k on the battery pack that goes into it. They're getting cheape
by stetrain 1y ago
People get the cause and effect of fancy EVs backwards.
To build an EV you have to spend $10-$20k on the battery pack that goes into it. They're getting cheaper, but that is a gradual process.
So your Toyota Camry / Honda Accord EV competitor is going to need to be priced starting at $40k to have a chance of breaking even.
How do you get people to stomach $40k for a base Honda Accord but Electric? You add things that cost very little but make the car feel more premium. Power seats, big screens, LED interior lights, glass roof, a processor that can play video games, cameras and autonomy features, etc. don't cost that much in the big scheme of things. Some of them, like screens instead of physical controls, might even save money in production and assembly costs.
So you add ~$3k worth of "premium" features to the car, price it at $45k, and now the buyer feels like they are getting something worth the money.