The Fact
While the 2008 Tesla Roadster might have once symbolized luxury and higher status, today, there’s an EV model for everyone, no matter what your budget is.
Where Did This Myth Come From?
This misconception has roots in the early days of EVs, particularly when Tesla introduced its Roadster in 2008 with a starting price of $98,950. At the time, owning a Tesla wasn’t just about driving a sustainable vehicle; it was about making a statement. But that was over 15 years ago when the cost of EV technology was high and charging infrastructure was sparse. Fast forward to today, and things have drastically changed. Even Tesla has made strides to lower their prices, and the broader auto industry is following suit. While Tesla initially positioned EVs as luxury vehicles, manufacturers are now focusing on making them accessible to everyone.
The Numbers
A report from Tech Brew reveals that the cost of batteries—which account for about one-third of an EV’s price—will drop by nearly 40% between 2023 and 2025. This decrease is driven by falling prices for critical minerals and advancements in battery technology. Automakers are responding by prioritizing affordability, and many models even qualify for tax credits, making EV ownership more attainable than ever.
New & Used EVs
If you’re in the market for a new EV, the good news is depending on where you live, you could qualify for a tax credit of $7,500 and states offer various local incentives and utility rebates to reduce the cost further. Also, if you’re considering a used EV, since 2023, qualified used EVs have been eligible for a federal tax credit of up to 30% of the sale price or $4,000, whichever is lower. This presents a great opportunity to snag a low-mileage used vehicle at a great price.
The Bottom Line
While high-end EVs with six-figure price tags still exist, the landscape is changing. Automakers like Ford, GM, Stellantis, and Tesla are bringing affordable options to the market, with many models set to debut in 2025 and 2026. Additionally, used EVs are now selling for significantly less than their gas-powered counterparts.
So, the next time someone tells you that EVs are unaffordable, you can set the record straight. The era of the affordable EV is here, making sustainable driving more accessible and opening the door for a new generation of first-time EV owners.