Neal E. Boudette
of The NY Times reports that automakers such as Ford and Tesla are lowering the prices of their electric vehicles (EVs) as the supply of battery-powered models surpasses demand.
Despite a 48% increase in EV sales in the second quarter compared to the previous year, the rate of sales cannot keep up with the production volume. The excess inventory of over 90,000 unsold EVs is causing automakers to offer discounts and incentives to attract buyers.
Ford reduced the prices of its F-150 Lightning electric pickup truck by up to 17%, while Tesla had previously initiated price reductions. The high prices of EVs have deterred some potential customers who are waiting for them to become more affordable compared to gasoline models.
Concerns about charging infrastructure and driving range also contribute to hesitation among buyers. Luxury EVs and models that no longer qualify for federal tax credits face additional challenges in finding buyers.
Ford's decision to lower prices may also be influenced by increasing competition in the EV market, with Tesla and General Motors launching their electric pickups.
We wholeheartedly endorse this movement. With the introduction of new electric vehicles and decreasing prices, a greater number of individuals will transition from fossil fuel-based vehicles to sustainable transportation due to its increased affordability. Additionally, advancements in battery technology, charging infrastructure, and other related technologies will significantly reduce concerns such as range anxiety, leading to a swift decline in buyer hesitation.
Source: NY Times
(This article was written with assitance from ChatGPT)