Re:Tencent buys 5% of Tesla
by mikeash on Wednesday March 29, 2017 @09:46AM
(#13986131)
I think gas prices are driving EVs less and less. It's still a factor, for sure, but things like performance, noise, maintenance, and convenience are driving it heavily as well. Of all the reasons I love my Model S, fuel savings are pretty far down the list, although I certainly don't mind!
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Yeah, that's the thing. If gas ever gets back up to $4/gallon in the US, EVs which are just somewhat competitive at $2/gallon are going to be radically competitive.
However, if EVs become widely used, then the lower demand for gasoline will mean gas prices stay low. So long-term, EVs need to compete with low gas prices anyway, even if prices creep back up in the near-term.
But yeah. Once batteries are cheap enough, then electric vehicles may actually become cheaper than internal combustion engine vehicles /upfront/, in addition to the much lower running costs.