Investors were recently disappointed when Tesla, which has long promised a cheaper vehicle, did not unveil one. And prices have a long way to fall before they're truly affordable. According to the latest Kelley Blue Book data, they're down 7.5% year over year, and that's before federal tax credits (including for used vehicles).īut there are daunting challenges - especially around charging infrastructure - before many car buyers will purchase an EV. In fact, led by Tesla's aggressive price cuts, electric vehicle prices are dropping. 'Really where the industry is going is putting in a lot of effort to get more affordable plug-in vehicles out in the marketplace.' 'We're not really expecting to see, you know, this resurgence of inexpensive gasoline-powered vehicles,' says Ed Kim, chief analyst at AutoPacific. But don't expect a tsunami of $15,000 cars. But in the meantime, they are not producing as many cheap gas-powered cars as they used to.īut there is some hope: EV prices could come downĪs the chip shortage eases, automakers say they want to make more vehicles for people who can't afford top-of-the-line full-size SUVs. Automakers are working to bring down the price of electric vehicles, which currently average $58,385. The Hyundai Ioniq 5 electric vehicle, shown driving inside a convention center at the 2022 New York International Auto Show, starts at around $40,000. Nissan also reduced sales of two other cheap models, the Sentra and the Kicks.īigger, slightly more expensive vehicles, like the Altima and the Pathfinder? Nissan boosted production of those. Our accommodation is all handpicked by our in-house team meaning that you know you will have a fantastic time once in resort.

In response, it cut production of one of its cheapest cars, the Nissan Versa, by 78%. Cheap ones get the boot.Ĭonsider what happened at Nissan, which continued to struggle with supply chain challenges throughout 2022. When automakers can't make as many vehicles as they would like, they prioritize their most profitable cars. Which cars are being made? Not the cheap ones Lower supply, higher prices: It's basic economics. What does AER mean as an abbreviation 296 popular meanings of AER abbreviation: 50 Categories.

The supply of new vehicles is starting to improve, but those millions of 'missing' vehicles are still gone. The semiconductor shortage has gotten much better since 2021, but it hasn't gone away entirely, and other supply chain snarls continue to periodically disrupt output.īecause of these supply chain problems, the global automotive industry has produced millions fewer vehicles than it would have otherwise.

Supply chain woes are still reverberating Prices for more expensive cars have risen even higher since the pandemic. A Chevrolet Suburban is displayed for sale at a dealership in Glendale, Calif., on Aug.

Aer meaning in june movie