Elon Musk Changes The EV World
Jim Farley, the CEO of Ford, has repeatedly stated that the threat to the US car market is posed by $25,000 EVs from China. Elon Musk is poised to change that, but not for Ford, but rather for Tesla.
Musk will launch a $25,000 version of his Model Y, which should help Tesla regain momentum in the US and offset the end of the $7,500 tax credit, considered a threat to EV sales in America. That belief is almost universal.
One challenge to the US EV industry is that EVs cost, on average, $10,000 compared to a gas-powered car. Electricity prices are rising, largely due to the increasing demand for AI data centers. An overabundance of oil is taking down gas prices.
$25,000 EV
Electricity prices may eventually be a larger issue than the cars themselves. Across much of America, electricity prices are rising by double digits every two or three years. The use of electricity in AI data centers will only continue to grow. A lack of new electricity sources and an outdated grid have exacerbated the situation.
Musk needs a $25,000 EV because charging is getting so expensive.
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