Why electric cars are already cheaper than internal combustion vehicles

Three years.

That’s all it will take.

Even less than that, in fact.

According to Volvo CEO Jim Rowan, by 2025 electric vehicles will reach price parity with internal combustion vehicles.

This is not surprising, as prices for electric vehicles have fallen over the past 10 years or so, while battery production prices have fallen by almost 90%, according to Bloomberg.

That being said, for the first time in over a decade, battery prices have increased slightly in 2022.

Researchers from Bloomberg expect to see the average battery pack go up to $135/kWh this year. In order to reach this point of price parity with internal combustion vehicles, this price must fall to $100/kWh.

It has been estimated that battery prices will fall to $92/kWh by 2024. Now that is unlikely to happen before 2025 or 2026, depending on supply chain tensions.

Yet the EV segment continues to benefit from increased consumer demand, and despite a short-term increase in battery prices, the long-term outlook remains the same: EVs will experience price parity with internal combustion vehicles before 2030.

And that doesn’t even include consumer savings directly related to operational costs.

Electric vehicles are already winning on price

The obvious cost savings right off the bat are fuel costs.

Generally speaking, “refueling” an electric vehicle costs about 3.5 times less than refueling an internal combustion vehicle, although this largely depends on where you live and the price you pay for electricity.

Either way, EV drivers save a good amount of money on fuel costs.

According to the Federal Highway Administration, American commuters travel an average of 14,263 miles per year.

Today, we pay an average of about $3.77 per gallon, with an average passenger car fuel mileage of about 24 miles per gallon. That means the average American commuter spends about $2,240 a year on gas, or $18,000 over eight years (the average length of time most American car owners keep their car before buying a new one).

Using the same number of miles traveled, the average American commuter using an electric car will spend about $640 per year on electricity, or $5,120 over an eight-year period.

Total fuel savings over eight years is $12,880.

Then count on repair and maintenance costs, which are much lower with electric vehicles because there are just fewer moving parts. No oil or spark plug replacements, longer lasting brakes, etc.

According consumer reports, EV drivers save an average of $4,600 on repair and maintenance costs alone. Add that to the savings of $12,880 in fuel costs, and the total savings comes to $17,480. That’s not trivial, and now there’s a new electric car about to hit the market that could eliminate fuel costs altogether.

This electric car doesn’t even need to be plugged in

If you’re a regular reader of these pages, you may have heard me talk about this before: a new electric car that has solar cells built into the body of the vehicle.

With these solar cells, the vehicle can be charged directly from the sun. And while you only get about 22 miles of range from these solar cells, by 2030 that number could more than double, which would more than meet the daily needs of more than 70% of all American drivers.

With a fully solar-powered electric vehicle (used for daily commuting), “fuel” costs could be eliminated entirely, bringing the total savings of electric car ownership to $22,600.

Oh, and by the way, this solar-powered electric vehicle is expected to cost around $31,000.

Deduct that $22,600 in fuel, maintenance, and repair costs, and you now have $8,400 to buy, run, and maintain this vehicle for eight years.

To put that into perspective, such a vehicle could end up costing you less than $90 per month to own and operate. Contrast that with the average car loan payment, which is about $600 a month, according to Bankrate — and that $600 does NOT cover fuel and maintenance.

To say that this new solar-powered vehicle is a game-changer would be an understatement.

While Tesla (NASDAQ:TSLA) has certainly been a game-changer when it comes to electric vehicles, producing an affordable electric vehicle that will ultimately cost you nothing to charge is the next game changer in the evolution of electric cars.

And make no mistake: the company behind it, which owns the technology, is going to significantly disrupt the entire passenger vehicle market. Without a doubt, it’s a Model-T moment, and you better believe we’re looking to make a lot of money with this thing.

That’s why I prepared this short presentation about this new solar-powered electric car and the company that makes it.

You can actually buy shares of it right now.

I specify that the production should start next year. Once that happens, it’s off to the races.

In other words, to get the most bang for your buck, you’ll need to get in now.

Incidentally, this company already has over 22,000 pre-orders (over $600 million in pre-orders) and they keep coming.

I’ve said it before, and I’ll say it again: It’s a Model-T moment, and unless you hate money, you should definitely have this stock. on your radar.

Towards a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and editor of Green Chip Stocks. To learn more about Jeff, visit his publisher’s page.

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