OPINION: The lower operating costs of electric vehicles — for both energy and maintenance — can create an attractive break even on the investment.
What will be different? Despite widespread optimism that we’ll all be driving Teslas TSLA, +3.71% and other electric vehicles, the reality is that most of the passenger vehicles around you will still be gas-powered.
Despite all the hype surrounding Tesla and electric vehicles for the masses, the tipping point for battery-powered cars remains significantly further away than many investors assume. The hefty price premium for EVs is falling at a slower pace than was hoped, and is set to remain a powerful economic factor weighing on families’ buying decisions.
A commercial vehicle that travels a finite number of miles in a day, makes frequent stops, and which has a base location for recharging represents a strong potential use case for an electric version. Garbage collection trucks, postal vans and delivery vehicles all fit this profile, as could buses, construction vehicles and even fire trucks.
It’s already clear there’s strong underlying demand for certain commercial use cases. It’s no surprise that Rivian’s IPO soared, partly on the strength of Amazon’s plan to order 100,000 of its light-duty EVs as delivery vans. The truck maker, in which Amazon holds the largest stake, plans to start accepting orders from other fleet customers in 2023.
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