Will Falling Prices on Electric Vehicles Eventually Hurt the Segment?
According to an article in TIME magazine, the slashing electric vehicle prices is neither sustainable nor recommended.
TIME argues that this electric vehicle price war will make it incredibly difficult to “turn a profit down the line.”
Sure, sales are up due to reduced prices, but there’s no way this trend can continue forever, right?
TIME quotes Kelley Blue Book senior analyst, Alec Gutierrez, as saying this:
“With prices coming down, consumers already on the fence may continue to wait and see if even greater discounts will come later in the year or next year. This will make it quite difficult to command higher prices in the future, which will make profitability more difficult to achieve. Until battery costs come down, manufacturers will continue to find it difficult to make a profit on EVs, especially knowing that consumers are really only jumping into the segment when the price is right.”
Sort of makes sense, especially when this topic is brought up among the “general public.” It seems the consensus out there is that we’ll wait a bit longer as the prices continue to drop. What’s your take?