Last updated on April 19, 2023
| There is a growing focus on the development of more affordable electric vehicles (EVs) that will make EVs more accessible to mainstream consumers. While the $7,500 tax credit and Tesla’s cost-cutting are important factors, the main reason behind the declining cost of EVs is the refinement of EV technology and new manufacturing processes. The Biden administration’s push towards the adoption of EVs is accelerating this trend. More than 60 new EVs are expected to enter the market in the next few years. With the lower prices, EVs will become more affordable and popular, making them a mainstream consumer good. The challenge for automakers is to achieve cost savings in production lines and compete effectively in the low-end market, and to make the vehicles appealing to consumers. The forthcoming Tesla Model 2 is expected to be a hatchback, manufactured in Mexico, and similar in price to the Honda Civic or Toyota’s Corolla. |
Complex Terms:
- Tax credit – A reduction in the amount of taxes owed to the government, based on certain activities or qualifications.
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