Are you going to cash in on the EV revolution?
An EV explosion: A question of the chicken or the egg
We are at a moment in time that feels like the tipping point for the EV revolution. But, the question that needs to be answered for EV to really take off is simply a matter of what needs to come first. More consumer adoption, or more infrastructure?
Right now, when told about EV charging opportunities, business owners often say, “We’re going to wait until there are more EV’s on the road.”
Meanwhile, car buyers who are told about the benefits of electric vehicles often say, “I’m going to wait until there is more infrastructure in place. There just aren’t enough charging stations yet.”
Despite this hesitancy, when it comes to the future being electric, it’s no longer a question of if, but when. So, what’s being done to bridge the gap?
One reason why business owners are unsure if it’s time to join the EV wave, is that most still perceive electric vehicles as “high-end.” After all, Telsa still owns over 50% market share in the EV industry, and with that market share comes a high price tag that could limit wide-scale adoption, or the areas where EV owners are going to be charging.
But that perception may no longer be accurate.
There are currently over 40 models of electric vehicles on the market today, with more on the way. The large-scale adoption the industry has been pushing is becoming evident as close to 2.5 million EV vehicles are on the roads as of 2024. Even federal and state governments are helping promote the adoption by offering large incentives and rebates for individuals and businesses to switch over to EVs.
What’s especially exciting, is that many EV options have been on the market long enough to develop a maturing used market. Early adopters are looking to switch their existing EVs to newer models, and companies are starting to cycle out older vehicles, increasing supply and causing prices to go down.
While the median price of a used car in the United States is just under $30,000, a quick search on used car websites such as Kelley Blue Book shows a growing number of EVs that are below that average. Some are even listed at half that price.
There has also been a push to improve the infrastructure needed for EVs, specifically charging stations (both level 2 and DCFC) to create a complete network that drivers can use to charge anywhere. The goal is to add charging stations to everyday parking spots at offices, supermarkets, and shopping centers, increasing the ability for EVs to go anywhere, and providing a new semi-passive stream of income to property owners getting into the charging business.
That brings us to where we are now, trying to decide whether the need to grow the infrastructure should come first, or if it is better to wait for more adoption of EVs.
As the market for EVs matures and more affordable options become available, more consumers will be able to make the switch than ever before. So, the only thing holding consumers back now is the inconvenience of limited charging locations. This means there is a huge opportunity waiting to be realized.
Change is clearly happening, but what the EV industry needs is forward thinking business owners to recognize this opportunity and make the first move.
To help, the push to increase infrastructure has seen commitments at the highest levels, intending to incentivize the creation of more charging stations. In Massachusetts utility companies are offering businesses up to $400,000 to cover EV charger installation project costs.
The future is coming. The question is, will you be part of it?
Links
https://explodingtopics.com/blog/electric-vehicles-stats#top-ev-stats
https://www.chargepoint.com/blog/whats-difference-between-level-2-ac-charging-and-dc-fast-charging
https://explodingtopics.com/blog/electric-vehicles-stats#top-ev-stats