How Is KR 1.1 Tracking?
The Price KR aims to meet an epic challenge: price parity between electric vehicles and combustion cars.
For EVs to rule the passenger car market, they must be affordable. To allay consumer anxiety on longer trips, they’ll also need longer and more reliable range and a more robust charging infrastructure. Speed & Scale’s goal is to reach true price parity, without incentives, by 2024 in the United States and by 2030 in China and India.
In the U.S., we now have more than 50 EV model options, from the Nissan Leaf ($28K) to the Ford Mustang Mach-E SUV ($40K) to such high-performance sports cars as the Tesla Model S ($75K).
In December 2023, according to Kelley Blue Book, the average price of a new EV in the U.S. was $50,798, as compared to $47,664 for a full-size gas-powered car or $32,595 for a mid-size gas-powered car. Once we factor in the up-front $7,500 federal tax credit (for eligible buyers of vehicles assembled in North America), plus state rebates and fuel and maintenance savings, the gap substantially narrows. Globally, government incentives average about $6,400 per vehicle.
In China, thanks to incentives, stronger product design, and lower manufacturing costs, EVs have already achieved price parity for some models. As a predictable result, adoption is exploding.
Other emerging economies face greater challenges. Though India is nearing price parity, the global EV industry still struggles to compete in places where new gas-powered cars sell for $10,000 or less.