A new comprehensive study has revealed that the cost of running electric vehicles is much higher than it is portrayed to be.
In the report from the Texas Public Policy Foundation, Brent Bennett and Jason Isaac pointed out that despite electric vehicle advocates’ consistent claims that the vehicles require less maintenance and cost less to fuel than traditional vehicles, the reality is that these vehicles are far more expensive.
The report stated that “no one has attempted to calculate the full financial benefit of the wide array of direct subsidies, regulatory credits, and subsidized infrastructure that contribute to the economic viability of EVs.”
Bennett and Isaac went on to provide evidence that “the average model year (MY) 2021 EV would cost $48,698 more to own over a 10-year period without $22 billion in government favors given to EV manufacturers and owners.”
“Adding the costs of the subsidies to the true cost of fueling an EV would equate to an EV owner paying $17.33 per gallon of gasoline,” the report continued. “And these estimates do not include the hundreds of billions more in subsidies in the Inflation Reduction Act (2022) for various aspects of the EV supply chain, particularly for battery manufacturing.”
“Nearly $22 billion in federal and state subsidies and regulatory credits suppressed the retail price of EVs in 2021 by an average of almost $50,000,” they added.
The report then pointed out that car lots across the U.S. are full of “unsold EVs” — noting that Ford has been “losing over $70,000 on each EV it currently sells.”
Bennett and Isaac also explained how those who pay for gas for their traditional vehicles are “paying for the entire infrastructure to refine, transport, and market that gasoline” — but it has never been officially calculated how much an EV owner pays toward the electric grid, such as “extra generation, transmission, and distribution costs.”
They questioned how much strain all of this was putting on the electric grid and whether these hidden costs would increase over time.
In concluding their report, Bennett and Isaac explained that the true cost of EVs is not comparable to the cost of an internal combustion engine vehicle (ICEV) — despite the insistence of government officials and EV advocates, who have ignored the hidden costs associated with their products.
“The stark reality for proponents of EVs and for the dreamers in the federal government, who are using fuel economy regulations to force manufacturers to produce ever more EVs, is that the true cost of an EV is in no way close to a comparable ICEV,” the report read. “Our conservative estimate is that the average EV accrues $48,698 in subsidies and $4,569 in extra charging and electricity costs over a 10-year period, for a total cost of $53,267, or $16.12 per equivalent gallon of gasoline. Without increased and sustained government favors, EVs will remain more expensive than ICEVs for many years to come.”
NEW – True costs of fueling an electric vehicle, including excess charging costs and subsidies, is equal to $17.33 per gallon of gasoline, a new analysis found. https://t.co/SSSkctoMeO pic.twitter.com/B8fBGypSid
— Disclose.tv (@disclosetv) October 26, 2023