There is an expected increase in electric vehicle sales, new products, and investments following a slow integration into the market. This progress can slowly lead to the extinction of gasoline engine vehicles. Investors in Wall Street are excited about the idea of established carmakers promising full lineups of electric cars.
General Motors, Jaguar, and Volvo have announced plans to do away with gasoline vehicles in the next decade. Tesla is leading the way with a fully electric lineup.
The sales of electric vehicles remain only a small fraction in the auto industry, with only 2% of the market share last year, as indicated by Cox Automotive, the Kelley Blue Book and Auto Trader owner. Cox executive analyst projects that the figure is expected to increase to 4% this year.
She, however, warned that the automakers' plan to move to EV is subject to change in the future if sales decline. She added that there are factors that can hinder the commitments of the automakers. Concerns about EV battery range cost and public chargers availability are indicators that gasoline engines are expected to remain in the market for some time. The following factors will affect the speed of EV evolution.
The Price of Electric Vehicles
The cost of developing batteries dramatically affects the EV's overall cost, and thus automakers strive to reduce it. Tesla's Model 3 goes for about $40 000 and is their most affordable car, while the Chevrolet Bolt goes for $36 500. These prices are higher than same-sized gasoline vehicles from established brands.
Availability of Electric Chargers
According to CarGurus's study, electric chargers' availability will significantly influence people's decision to buy electric vehicles. When purchasing an EV, one must account for the limited range and availability of charging stations in their area.
Tax Incentives
The Biden administration has introduced several bills in Congress to offer additional incentives in favor of EVs. It's still uncertain how the legislation will affect the industry. However, EV and green energy were the cornerstones of Biden's campaign.
Competition
Electric vehicle startups like Lucid and Rivan have made huge commitments this year. Other automakers like Lordstown, Fisker, and Bollinger have also promised electric vehicles. Lucid has promised the Lucid Air electric sedan in 2021, while Rivan will produce an electric pickup and SUV.
Many investors are capitalizing on EVs, believing that it's the future of transportation. There is a concern that the investors may be too exuberant, but most investors are optimistic about the electric car market.
