Electric vehicles will replace gas vehicles. It’s not a matter of if, but when.
Electric vehicles, or EVs, currently account for only 2% of new vehicle sales in the US. That being said, 10 years ago they made up less than 0.1% and. That’s an impressive growth rate, and we believe it will continue for at least the next 10 years for several reasons.
First, the cost of electricity for people charging their cars at home (which most people do) is almost half the cost of gas. Over the lifespan of a vehicle this will definitely add up. Not to mention that with solar, electricity costs can drop dramatically. We believe solar will become more prevalent, making the cost savings of electricity vs gas Source: EV-Volumes
even more enticing.
Second, while the maintenance costs on a internal combustion engine (ICE) vehicle can be very high over the lifetime of the vehicle, EVs have little to low maintenance. This is because there are far fewer moving parts in an EV. Anyone who has ever checked under the hood of one knows that there’s basically nothing there. According to AAA, the average maintenance cost of an ICE sedan is almost $1200 per year. An electric vehicle’s maintenance costs are a fraction of that, averaging just under $300 per year. That means that over the course of 10 years, an ICE vehicle will cost you $10,000 more in maintenance than an EV. We believe that as more people become aware of this, many customers will choose to switch to EVs.
The third reason electric vehicle sales will continue to climb is their longevity. According to Consumer Reports most ICE vehicles currently last between 150,000 to 250,000 miles. As I mentioned earlier, ICE vehicles have numerous moving parts and this leads to inevitable complications as the vehicle gets older. EVs on the other hand are fairly simple, and have the ability to last much longer. Tesla is the leader in EV technology and it boasts that it's cars are currently built to last 1 million miles, and that its battery packs should last close to 500,000 miles. Many people have been skeptical of these claims because most of Tesla's vehicles haven't been on the road long enough to prove them. Although, there are some Teslas that are living up to the hype. Tesloop is a Los Angeles based start up that has been running a shuttle service with a fleet of Tesla vehicles since 2015.
Many of the vehicles in their fleet have racked up well over 250,000 miles and are still running just fine. In fact, they have a Model S that has over 440,000 miles on it. If EVs can last this 2 to 3 times as long ICE vehicles then the cost comparison is no contest.
Finally, one of the main concerns people have about buying an electric vehicle is the lack of range. While we believe battery technology will improve and that you will see EVs on the market with over 500 miles of range within the next few years, we don't think this is actually something that consumers should be concerned about. The average person in the US drives about 30 miles per day. If you can plug your car in at home overnight, then you can essentially leave your house with a full tank of gas every day. Therefore, the 300 mile range that most current EVs have is perfectly fine for the average person. Furthermore,EV charging infrastructure has exploded across the world to the point where you can drive most electric vehicles anywhere you want without worrying about losing a charge. The main problem then becomes consumer education.
So to sum it up, EVs cost far less to own over the lifespan of the car when you take into account electricity costs, maintenance, and vehicle lifespans, and they are more convenient because you can charge right at home. Not to mention the best ones can almost drive themselves. In our opinion, this points to a continued high growth rate for EV sales in the foreseeable future. #evs #tsla #tesla #electricvehicles #model3