In just a few years, we might finally have affordable EVs hitting the market.
Remember when solar power was considered infeasible as a mainstream source of energy? Well, things have changed now. Technology improvements made solar electricity more affordable than traditional fossil-fuel alternatives. It was only a matter of time before the automotive industry caught on. According to analysts, EVs might become cheaper than ICE cars by 2024.
All the markers were pointing towards it, and this time it comes straight from the horse’s mouth. Investors and buyers alike should note that reports from JP Morgan, Morgan Stanley, UBS Group AG, and independent researcher Matthias Schmidt suggest the movement is about to hit full swing.
According to the European Electric Car report, September alone saw 90,000 pure electric BEV passenger cars registered across Western Europe. The number will only rise as the price of raw materials and production eventually comes down. Furthermore, Tesla alone shipped 139,300 vehicles in the third quarter of 2020.
Research from Morgan Stanley suggests that batteries, the lifeblood for EVs, currently cost between $210-$230/kWh to produce. For comparison, in 2010, the cost was $1000/kWh. Moreover, global market trends suggest it will hit US$100 per kWh by 2024.
Meanwhile, climate regulations (mainly in the EU) force carmakers with gas-guzzling engines to release PHEV and BEV. Otherwise, they are facing significant fines.
Compared to the cost of traditional internal-combustion engines, the tipping point could be the middle of the decade. JP Morgan corroborates this projection and estimates EVs will account for over 38% of total sales in 2025.
While it does seem like a significant loss for all petrolheads, there is hope if we look closely. EVs have lightning-fast acceleration thanks to instant torque delivery. So, at least regarding performance, the future looks bright.