Tesla's announcement during Battery Day that the company would introduce an affordable electric car within three years was tremendous news. The advent of an EV for $25,000 with fully autonomous capability will fundamentally change the entire automotive industry, making the Tesla car one of the most attractive options.
Following this announcement, the pricing of existing electric vehicles from other manufacturers has received a lot of attention. Thus far, other companies have not offered an accessible, compelling EV—and the cars they have lag far behind in performance and especially in range.
Korean experts expect other electric vehicle makers to take at least four or five years to develop an electric car model that is as affordable as Tesla’s $25K planned offering, according to Korea Biz Wire. But assuming the competition could produce a $25K car in that timeline, the characteristics of the offering would likely be much more modest than that of Tesla.
For example, in South Korea, the average market price for domestic electric vehicles ranges from $38,900 to $41,600 for midsize models and $33,600 to $35,700 for smaller size vehicles. Unless South Korean battery makers decide to equalize battery prices to Tesla's level, it's unlikely that domestic EV makers will introduce new models with a cost of around $25,000.
Tesla Plans to Offer $25,000 EV Within 3 Years, Says CEO Elon Musk at Battery Dayhttps://t.co/df0kCioUOo— Tesmanian.com (@Tesmanian_com) September 23, 2020
In order to introduce affordable electric vehicles, manufacturers will have to sacrifice profits. “If automakers sacrifice profits in exchange for a breakthrough in the market, EVs that cost less than 30 million won may be available in four to five years,” said Kwon Soon-woo, a researcher at SK Securities Co.
Tesla has worked over the years to make electric vehicles affordable to everyone. In 2006, Tesla CEO Elon Musk clearly described this:
"As you know, the initial product of Tesla Motors is a high performance electric sports car called the Tesla Roadster. However, some readers may not be aware of the fact that our long term plan is to build a wide range of models, including affordably priced family cars. This is because the overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution."
Finally, the company has reached the point where it can offer the market a fully autonomous electric vehicle at an affordable price for the masses. This is a big step towards sustainable energy and a healthy future.
© 2020, Eva Fox. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.