- Federal and state subsidies have artificially driven up electric car sales
- But EVs cost everyone, according to the Texas Public Policy Foundation
- Ford said this month that it incurs a loss of around $36,000 on each EV it sells
The true cost of electric cars to the average American taxpayer has been laid bare by a landmark new study into the eco vehicles.
In order to bring EVs to market, governments have created a variety of tax incentives for buyers and manufacturers. They have also sponsored the development of the infrastructure needed to charge them.
But those subsidies can come at a cost to taxpayers, buyers of gas vehicles or simply households that pay electricity bills.
A new paper by conservative think tank Texas Public Policy Foundation estimated that the average electric car incurs hidden costs of $48,698 over a 10-year period.
‘Electric vehicle owners have been the beneficiaries of regulatory credits, subsidies, and socialized infrastructure costs totaling nearly $50,000 per EV,’ said one of its authors, Jason Isaac.
A new paper by conservative think thank, Texas Public Policy Foundation , estimated that the average electric car incurs hidden costs of $48,698 over a 10-year period
Ford’s electric F-150 Lightning truck outside its headquarters in Dearborn, Michigan. The company said during an earnings call this month that it had lost around $36,000 on the sale of each electric car sold this quarter
‘These costs are borne by gasoline vehicle owners, taxpayers, and utility ratepayers, who are all paying a hefty price for someone else’s EV.’
The paper estimated that the average cost of EV subsidies, ultimately footed by American taxpayers, were around $8,984 per car. That was thanks to a combination of the well-known $7,500 federal tax credit as well as state subsidies.
‘Our preliminary analysis indicates that states handed out over $646 million in taxpayer subsidies to EV buyers in 2021,’ read the report. ‘Dividing by the 435,320 EVs sold in 2021, the average EV buyer received state credits totaling $1,484.’
Separately, it found that the infrastructure required to facilitate electric cars in America is not paid for directly by the owner of the car. It described those expenses as ‘socialized infrastructure costs.’
‘Home and public charging stations used by EVs put a significant strain on the electric grid, resulting in an average of $11,833 in socialized costs per EV over 10 years, which are shouldered by utility ratepayers and taxpayers,’ read the paper.
The authors argued that the gasoline infrastructure is used for other products and society at large, whereas electric vehicle charging costs currently only serve EV owners.
