Why Electric Cars are too expensive?

Electric cars are a great idea. They’re more efficient than gasoline-powered cars, don’t contribute to global warming, and reduce pollution.

But electric cars aren’t cheap. The battery costs about $12,000 (and in some cases more than $20,000) and the motors cost from $5,000 to $10,000. That’s why they cost four times as much as comparable gas guzzlers.

Electric vehicle sales are booming

This is something we've heard a lot over the years. It's a common argument against electric cars than gasoline cars on https://rentalcarsuae.com/, but there's no better time to have this conversation than now — when electric vehicle sales are booming, and when the cost of an electric car has dropped so much that it's actually cheaper to buy one than a gas-powered car with similar specs.

Gas-powered vehicle

Why is that? Well, the price of an electric car can vary depending on where you live and your driving habits. If you live in California or New York City where electricity is relatively cheap, then buying an electric vehicle could be more expensive than buying a comparable gas-powered vehicle. If you live in Michigan or Texas where electricity is more expensive, then it will be cheaper to go with the gas option as long as you don't drive too much or need more power than what your battery can provide.

Electric cars are expensive because they have a limited range and require recharging

The Tesla Model S has a range of 335 miles, but the company says it can travel even farther with a full charge. But the car needs to be plugged in at least once every 200 miles, which is expensive. That's because electric cars use more energy than their gasoline counterparts and they also need to be recharged frequently.

Fast Travelling

For example, a trip from New York City to San Francisco takes about six hours without charging; with a full charge, it takes about five hours. Most drivers will not drive that far during one trip. Instead, they will charge up at night or on weekends when there's less traffic congestion and more time to do so.

Electric cars are expensive

Electric cars are expensive compared to other cars because they cost more to build, but also because there is a large upfront cost to buy one.

The main reason that electric cars are so expensive is that their batteries are made using lithium-ion technology. Lithium-ion batteries have a high energy density, which means they can store a lot of power per unit weight and volume.

Batteries are made using lithium-ion technology

However, lithium-ion batteries are also very expensive in terms of raw materials. For example, the lithium used in electric cars costs around $1400 per kilogram — more than twice as much as lead or nickel.

This makes it difficult for companies like Tesla Motors (NASDAQ: TSLA) or BMW (ETR: BMW) to make money on electric cars because they need to sell them at high enough prices to cover their costs and make a profit.