EVs No Longer an Economic Alternative to ICEs As Supercharging Rates Go Through the Roof

EVs are no longer an economic alternative to ICEs as Supercharging rates go through the roof 6 photos
Photo: Tesla
Supercharging is more expensive than gas fill-ups in CanadaSupercharging is more expensive than gas fill-ups in CanadaSupercharging is more expensive than gas fill-ups in CanadaSupercharging is more expensive than gas fill-ups in CanadaSupercharging is more expensive than gas fill-ups in Canada
One of the key reasons why people made the switch to an electric vehicle was the more favorable cost of ownership. Not only did a battery charge cost a lot less than filling up the tank of a similar car, but the maintenance was also cheaper. But then the world went crazy and now people started questioning the economics of owning an electric vehicle.
When the gas prices started to rise a couple of months ago, a lot of ICE car owners considered switching to an electric vehicle. In fact, both statistics and carmakers indicated an increase in EV orders specifically because of the high gas prices. But things have changed, not least because the increased demand has put pressure on the market. Soon, not only did EV prices increase significantly, but the operating costs also went up.

Tesla, the company that sells the most EVs in the U.S., has aggressively raised prices in the past months. The main reason was raw materials scarcity and price spikes, but the high demand also played a role. This allowed Tesla to post the biggest profit in history in the first quarter of the year and will most likely repeat the claim for the second quarter too. This proved skeptics saying it’s impossible to make a profit from EVs were all wrong. Tesla is one of the most profitable car companies in the world.

Apart from becoming more expensive, the EVs have also lost their cheap operating costs appeal. Electricity prices have spiked and Supercharging costs often shocked Tesla owners. Tesla historically said it does not make a profit from selling electricity to its customers, but Tesla owners faced increased prices nevertheless.

In countries where the charging rates are per minute, a full battery charge became closer in price to a tank of gas. Canada is one example, and we have covered reports of outrageous supercharging bills that started to appear more than a month ago.

But even in the U.S. where Superchargers charge you by the kWh things have gone haywire. A Tesla owner shared on Twitter the Supercharging rates from the Los Angeles area and indicated that they roughly doubled in the past years. To be sure, the $0.58/kWh rate is for the peak hours from 11 am to 9 pm, with half that outside this interval. Twitter users across the U.S. have indicated similar rates, with averages of $0,40 becoming the norm.

Of course, most of the time charging at home is cheaper, especially when solar energy is used, but not all Tesla owners have access to home charging. For those who don’t, charging an electric vehicle will become more expensive in the future. This will make owning an EV less compelling, especially as the upfront price of buying one has also got prohibitive.

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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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