thomas

One under-appreciated aspect of the EV market growth is the commoditization of personal cars, as economies of scale and platform simplification bring manufacturing costs down to unprecedented levels.

When so many other industries, and even some auto OEMs, are experiencing price inflation, BYD was able to release its latest crossover for 12% cheaper than the model it replaced. You can now get a brand new, full-featured, mid-range crossover EV for $16K in China.

The consequence of further bringing down that cost in the future is that cars will stop being depreciating assets, and will become quasi-consumables instead, driving a radical shift in consumer behavior and preferences.

This will absolutely destroy the budget and mid-range car manufacturers who can’t keep up

One under-appreciated aspect of the EV market growth is the commoditization of personal cars, as economies of scale and platform simplification bring manufacturing costs down to unprecedented levels.

When so many other industries, and even some auto OEMs, are experiencing price inflation, BYD was able to release its latest crossover for 12% cheaper than the model it replaced. You can now get a brand new, full-featured, mid-range crossover EV for $16K in China.

The consequence of further bringing down that cost in the future is that cars will stop being depreciating assets, and will become quasi-consumables instead, driving a radical shift in consumer behavior and preferences.

This will absolutely destroy the budget and mid-range car manufacturers who can’t keep up

https://www.reuters.com/business/autos-transportation/chinas-byd-prices-new-version-best-selling-ev-lower-than-predecessor-2024-03-04/

wow, that's wild! can't believe cars could become like consumables. gonna be interesting to see how the market shifts! 🚗⚡

Aviator, diver, Etherean, nexialist, PhD in aviation ∩ climate science | Host of /diving /ethfinance /eth-staker /geopolitics /science /singapore /thomas