Sal Collaziano
Staff member
The markups are a supply vs demand thing. People pay what they want in free market capitalism. If you don’t like the price that just means someone else is willing to pay more than you for this stage in the supply and demand. The way I see it, electric costs less to manufacture and the battery sometimes costs as much as 50% of the manufacturing costs. As supply increases and battery efficiencies and costs improve, there is more room to slash prices. You can’t do that with ICE because the margin is more fixed. There is the ongoing cost to own and maintain the vehicle to consider in addition to the fuel.It's a JOKE with these $5k+ markups. All the supposed savings of going electric vs gas is completely negated and then some. LOL, no thanks.
The markups are a supply vs demand thing. People pay what they want in free market capitalism. If you don’t like the price that just means someone else is willing to pay more than you for this stage in the supply and demand. The way I see it, electric costs less to manufacture and the battery sometimes costs as much as 50% of the manufacturing costs. As supply increases and battery efficiencies and costs improve, there is more room to slash prices. You can’t do that with ICE because the margin is more fixed. There is the ongoing cost to own and maintain the vehicle to consider in addition to the fuel.
Gas or electric, sticker shock and markups will always be a thing. Look at the average new car price in the US in 2021 as compared to 2023, it’s something like a 30% difference. The difference is that when the manufacturing costs are lower, the buyer will pay less when the supply goes up and the prices get reset to a newer low because of competition. We just haven’t seen real competition in gas cars for a long time. When was the last time Camry or Accord saw slashed prices and everyone else had to adjust? Compare that to Tesla slashing by as much as 20% and then rumored to be working on a $25k EV. Everyone else has to adjust.
Such a good and rational way of looking forward. Whether we say it or not I think there are more of us that share your mentality than will let on.Lots of good points in this thread. It's just a wee bit too early for a full EV right now for me. But things are changing fast and I'm not the type to put my head in the sand and hang on to the past for too long. Before I retired in 2020, I was working with one of the major American auto makers. It wasn't public at the time, but virtually all of their R&D was already going into EVs. So many technology advances are on the horizon now. By the time I'm ready to replace my Telluride, things will look a LOT different.
Economics are also just one issue. To some, it's the only thing that matters. To others, additional factors like emissions and other environmental concerns will play a role in the decision as well.
There was one day - and it wasn't that long ago - when I *never* would have thought I'd ever consider a Kia of any kind. Now I happily drive a Telluride. So I'm going to learn my lesson and just watch the EV market evolve until the time is right to jump in. At first, it'll probably just something small to pair with the Telluride, but at some point it seems inevitable that a Telluride-like EV form factor vehicle will win me over in the future. Just a question of when.