Many, including Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk and Microsoft Corp. co-founder Bill Gates, have previously flagged the high price point of electric vehicles, as compared to gas counterparts, as hindering mass adoption of EVs. However, EV makers are now gearing up to make more affordable models.
EV Giant Paves The Way: During Tesla's third-quarter earnings in October, the company said that it is preparing to launch new vehicles, including more affordable models, starting in the first half of 2025.
"These vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up," the company then said.
"This approach will result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex-efficient manner during uncertain times."
Startups Follow Track: EV startup Rivian Automotive Inc. (NASDAQ:RIVN), meanwhile, intends to start production of R2 in the first half of 2026.
The R2 SUV is expected to be priced at around $45,000, making it a cheaper and more mass-market offering than the company's R1 vehicles which have a starting price of around $70,000.
Lucid Motors Inc. (NASDAQ:LCID) is also looking forward to starting production of a high-volume midsized platform priced at around $48,000 in late 2026 as a direct competitor to Tesla's mass-market offerings Model 3 and Model Y.
Legacy Players Strive To Keep Up: Ford Motor Co. (NYSE:F) CEO Jim Farley said in February that it developed a "super-talented skunkworks team" to create a low-cost EV platform two years ago and they have developed a flexible platform that will be deployed to several types of vehicles.
However, in August, Ford said that it is killing its plans to build a three-row electric SUV, initially slated for production in 2025. The company also postponed its plans for a new electric version of its F-150 pickup to 2027 and said it will start making a new electric commercial van in 2026.
More details on the company's EV strategy are now expected in the first half of 2025.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
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