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Writer's pictureMahmoud Emara

Why Go Electric in 2023?

When is it the right time to go electric? Is it a safe investment? In the current world, events have shown that it is a great time to make the transition. There are a few reasons why you should consider entering the market for an EV or are considering investing in the EV space.



THE CURRENT CLIMATE:

Understanding where we stand right now when it comes to EVs is crucial in making the right decision for you. We are constantly seeing a fluctuation in gas prices. Although they have come down as of late, it’s still a pinch to the bank account when one tank of gas costs a minimum of $50. The cost of oil is increasing internationally along with the overall cost of owning an internal combustion engine (ICE) vehicle. The price of electricity is cheaper and will continue to decrease due to the ongoing innovation of clean and sustainable energy.


When we combine these factors with rising interest rates and maintenance costs, it makes the entire process of buying a new car less than desirable. We are already looking at a chip shortage and a reduced supply of car parts, making repairing your car that much more of a nuisance. How long do you have to wait to get something repaired if it breaks down? It makes sense that no one wants to buy an ICE car, just look at the skyrocketing inventory of gas vehicles. Prices and maintenance are too high and demand is slowly decreasing as new and better options are making their way into the market.


PUBLIC INTEREST

Why are so many people looking into EVs? It’s almost as if it’s a trend now. Social media and trend culture have brought attention to the electric vehicle market and have highlighted some key factors as to why the general public may prefer an EV over an ICE vehicle. People are looking to save money on large purchases, maintenance, and fuel. They are also looking for more convenient means of

transportation along with an elevated experience.


We want it all! We want lower prices and lower maintenance, but we also want to enjoy the vehicle we drive to work in. All of this is pretty clear and the numbers confirm that the EV adoption rate is doubling every year as per quarterly earnings reports of the leading brand: Tesla Motors.


GOVERNMENT REGULATION

Even the government is hopping on this trend of EVs. California and New Jersey are stated to end new ICE car sales by 2035 and Europe is ending new ICE car sales by 2030. It will not be a surprise to see more governments joining in on these policies. The shift towards EVs is happening soon. Getting into the EV market now creates more opportunities and leverage for an investor in the future.


INCENTIVES and BENEFITS

What are the perks? The bottom line is we all want to know what the pros are to buying an EV. Here are some of the incentives and benefits listed below:

  • $7500 tax rebate on qualified EV models.

  • Certain U.S. states offer Zero State Sales taxes on EV purchases

  • Government incentives are offered to install EV chargers (varies by state).

  • Discounts are offered on services to owners of EVs (Ex: hotels give discount packages to customers who own EVs and offer charging as well).

  • EVs typically retain their value. Most of the time when you buy a car and go to sell it, you end up selling it below the value you bought it for. Certain EVs are considered to be assets that either hold or increase in value over time depending on the market.

  • EVs have fewer moving parts and therefore require less maintenance.

  • Over-The-Air (OTA) software updates can add new features to your car or conduct some maintenance with a simple click of a button and an internet connection. It’s like updating your smartphone. This improves the overall customer experience

  • The cost of ownership of an EV over time is significantly less than the cost of ownership of an ICE vehicle. (Did you know over 5 years of ownership it is cheaper to own a Tesla Model 3 than it is to own a Toyota Camry?)

  • Longevity of the car → Tesla Motors batteries last at least 400,000 miles and this is as of today, battery tech is continuing to improve.

  • EVs are safer to drive on the road, they have a low center of gravity which reduces tip-overs and the lack of engine in the front of the car leads to creating a larger crumple zone.

  • Evs reduce CO2 emissions and lower your carbon footprint.

  • Many people believe that EV charging relies on fossil fuels, but in reality, there are methods of clean, sustainable energy such as solar and wind power being adopted to charge EVs instead. This leads to overall clean energy utilization, reduced CO2 emissions, and overall ease of management as well.


INFRASTRUCTURE

The infrastructure that comes with owning an EV is important, as well. Common questions are: How easy is it to charge? Can I charge at home? Are there chargers like there are gas stations on the highways? The EV charging network is exponentially growing and this movement is led by Tesla, Electrify America, Con Edison and more. Recently, more methods of charging have been introduced by companies such as Lectron, ChargePoint and itselectric. The idea is to create a network so vast and diverse that whether you are at a rest stop on a highway, parked at a meter in the city, or are simply at home for the night, there is always a method of charging your car.

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