Importantly, EVs are half the cost per mile to operate versus a combustion vehicle, so their total cost of ownership is lower the longer you own it (with higher upfront capital costs). EVs mustn't be the same price as a combustion vehicle; they need to be able to be financed by the consumer at a low capital cost (funded by issuing green bonds by whomever is originating the auto loan, enabling a below market interest rate to be provided to the borrower) so they can get the lower cost per mile benefit over their ownership period (versus a less expensive upfront combustion vehicle with more expensive petroleum fuel ongoing costs). Tangentially, as the price of power declines as the grid gets cleaner due to renewables, electric vehicles become even cheaper to drive per mile. Your primary costs end up being the tires.
Well to do consumers will keep buying Teslas (currently at a ~1.25M/year unit run rate, ramping to 2M units/year by EOY), and those cars will filter down to the used car market for price sensitive consumers over time (and due to powertrain longevity, they’ll be in much better shape versus a combustion counterpart at similar mileage).
This is quite similar to how rooftop solar is a large cost upfront (if not financed), but once paid off, it generates power “for free” over its 25-service 30 year life (versus ongoing utility expenses forever).
Well to do consumers will keep buying Teslas (currently at a ~1.25M/year unit run rate, ramping to 2M units/year by EOY), and those cars will filter down to the used car market for price sensitive consumers over time (and due to powertrain longevity, they’ll be in much better shape versus a combustion counterpart at similar mileage).
This is quite similar to how rooftop solar is a large cost upfront (if not financed), but once paid off, it generates power “for free” over its 25-service 30 year life (versus ongoing utility expenses forever).