Research Firm Says EVs Still Unprofitable (For Now)
June 11, 2020—Emissions reductions and environmental concerns are fueling consumers' attention toward electric powertrain vehicles. For automakers, the challenge in these early years is to create attractive and profitable models.
A report from Lux Research, which was shared in a press release from the firm, says that technology is evolving and prices are trending downward for production.
"Since 2011, range has consistently increased, with a compound annual growth rate (CAGR) of 13.7 percent ," Chris Robinson, Lux senior analyst and lead author of the report said in the press release. "Prices have also gone down, with the average vehicle's base manufacturer's suggested retail price in 2019 at $33,901, down from $42,189 in 2016. These changes are making it easier for consumers to own an electric vehicle."
All automakers are now dabbling in EV production in some form, but materials sourcing and COVID-19-related shutdowns have slowed development. Adding to a constellation of predictions on the rise of EVs, Lux says that it will be between 2035 and 2040 that electric powertrains dominate the majority of vehicle sales.