Ford CEO Jim Farley said on Wednesday that electric vehicles may not reach the same level of cost as gasoline cars until after 2030.
Speaking at an investor conference, Farley said that, for most automakers, producing electric vehicles will remain more expensive than internal combustion engine vehicles until the end of the decade. ReutersIt also added that this contrasts with analysts’ predictions that EVs could reach the same cost as gasoline cars by 2025.
Ford SUV 3 rows of seats 2025 –
Farley predicts that when second and third-generation models are introduced between 2030 and 2035, EV costs will fall due to “significantly lower labor content.” production simplification and requires fewer parts, as well as a smaller battery pack, reiterating a point made earlier this year.
Farley also said automakers could save more money by shifting to online sales and generating more revenue from “new software-based digital services,” according to Reuters.
Ford Explorer electric crossover for Europe
electric vehicle battery cost went the wrong way in 2022, potentially extending time before electric and internal combustion engine vehicles reach comparable cost levels. At the same time, the limitations of the market have been creating a premise for an EV price war.
In the meantime, that could mean that some automakers are simply choosing not to compete in segments where they are unlikely to see profitable returns in the near future. But like Recommended Consumer Reports, the outsiders may lose market share that they cannot bring. So while this may be very transformative period in mobile historyMany production barriers and serious financial challenges will need to be addressed first.
