More Electric Cars to Hit the US Market
More Electric Cars to Hit the US Market. New electric cars will soon be flooding the U.S. market to meet federal regulatory demands and to compete with Tesla. Automakers are currently spending more than $250 billion to develop over 200 new electric cars that are expected to hit the market by 2022.
But similar to challenges that Tesla is currently facing, will these cars be profitable for auto manufacturers? According to a new report by business consulting firm, AlixPartners, transitioning from conventional cars to electric vehicles will come at a steep price for automakers. The report says it will cost auto manufacturers about $9000 more than standard cars to build new electric vehicles and another $5700 for plug-in hybrids. The report also says the supply of these cars is likely to exceed customer demand, which means that automakers may be forced to sell them at a lower price due to intense competition. Auto executives are comparing clean mobility to organic food, saying that it’s just more expensive.