How Is KR 1.1 Tracking?
This key result aims to break through a historic barrier within two years: price and performance parity between EVs and combustion cars.
For EVs to capture the bulk of the passenger car market, they must be widely affordable. They’ll also need sufficient range for longer trips without recharging.
We now have more than 30 EV models to choose from in the U.S., from the Nissan Leaf (starting at $27K) to the Ford Mustang Mach-E SUV ($43K) to high-performance sports cars like the Tesla Model S ($105K to $136K).
According to Kelley Blue Book, the average EV price in the U.S. is $61,448, as compared to $48,314 for a full-size combustion car. With the $7,500 federal tax credit, state rebates and fuel savings, the total cost of ownership is coming within reach. Globally, government incentives average about $6,200 per EV.
Our goal is to reach price parity without such incentives. SUV manufacturers in Europe, have already eliminated the price and performance premium.
But supply chain issues have pushed up costs for all cars, with the average price of full-sized gasoline vehicles increasing about $4,000 and EVs increasing about $8,000. At the same time, rising gasoline prices have given EVs an advantage in total cost of ownership.
The developing world presents an even greater challenge. Though India is getting closer, the global industry has yet to meet price targets in places where new combustion cars sell for $10,000 or less.
Data for KR 1.1 is sourced from Kelley Blue Book, which updates monthly for new vehicle average transaction prices.
Today’s car buyer has a wealth of EV choices at widely varying price points:
In recent years, the number of EV models on the market has more than tripled:
Government incentives for EVs vary by country, with the U.S. above the global average of $6,200.