EVs will be cheaper than gasoline-powered cars by mid-2020s – Computerworld

Posted: Friday, February 26, 2016

Continuing drops in lithium-ion battery prices mean that electric vehicles (EVs) will be less expensive to own than gas or diesel-powered vehicles as soon as the 2020s, according to a new report.

The report, by Bloomberg New Energy Finance, calculated that EVs’ total cost of ownership will become cheaper on an unsubsidized basis than that of internal combustion engine cars by the mid-2020s. This will occur even if gas-powered cars continue to improve their average mileage per gallon by 3.5% per year.

The study’s figures assume that EVs with a 60kWh battery (such as the Tesla Model S) will travel 200 miles between charges. The first generation of these long-range, mid-priced EVs is set to hit the market in the next 18 months with the launch of the Chevrolet Bolt SUV and Tesla Model 3.

The Chevy Bolt SUV is scheduled for availability in late 2016 with an expected retail price starting at $30,000. The Tesla Model 3 sedan is expected to start shipping in late 2017 with a starting price of $27,500. (Both vehicle prices include a federal EV tax credit of $7,500.) Both the Bolt and Model 3 will have ranges greater than 200 miles on a single charge.

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