PRICE JOLT
You can plug into the electric-vehicle movement, but it won’t come cheap.
Like millions of Americans lucky enough to keep their jobs during the pandemic, my family bought a car last year.
Our 2006 Honda Accord was showing its age after racking up more than 147,000 miles, and its air-conditioning system was starting to strain against Houston’s scorching summers. Auto loan interest rates were at an all-time low, and we needed more space given our two growing young children.
More than a decade ago, our choices were limited when it came to car engines. There were a few hybrid gasoline-electric vehicles, such as the Toyota Prius and Honda Insight, but the vast majority of vehicles for sale came with the true-and-tried internal-combustion engine.
Today, however, automakers are rolling out a plethora of all-electric and plug-in hybrid vehicles in response to new regulations over carbon emissions and growing public concerns over climate change. Although the U.S. market for electric vehicles is currently minuscule — about 2 percent of the total — consumer interest is growing rapidly as electric vehicles have moved from a niche product into the mainstream.
Nearly every traditional automaker has introduced an electric vehicle, and many have pledged to replace gasoline-powered vehicles with all-electric versions. General Motors — the largest U.S. automaker — in January said it would phase out gasoline-powered
cars by 2035, the same year California’s ban on sales of new gasoline-powered vehicles takes full effect.
Tesla, the EV juggernaut led by newly minted Texan Elon Musk, proved to traditional automakers that electric vehicles can deliver high performance and be highly desirable. The California automaker delivered nearly 500,000 vehicles worldwide last year, up from 367,500 in 2019 —
despite the pandemic. Tesla is under construction on its largest electric vehicle and battery factory in Austin, planting its flag in the heart of oil-dependent Texas.
The rise of electric vehicles will have a profound impact on the oil and gas industry in Houston and Texas, reducing global oil consumption by as much as 2.5 million barrels per day by the end of this decade, the International Energy Agency said.
Transportation accounts for about a quarter of total U.S. energy consumption and is currently driven entirely by petroleum products such as gasoline and diesel.
Although much of the electricity that powers electric vehicles today comes from natural gas power plants, these plants are facing growing competition from cheaper solar and wind farms going up across Texas and the rest of the country.
Yet, despite all the excitement and development around electric vehicles, the cost of an allelectric SUV was out of reach for my family, supported by journalism and public education salaries. The cheapest all-electric SUVs from Kia and Hyundai with enough space for our family of four started just under $40,000, nearly double the price of their gasoline-powered counterparts.
We ended up buying a used 2018 Mitsubishi Outlander for well under half the cost of a comparable new electric SUV. We considered Mitsubishi's plugin hybrid Outlander, but the electric battery meant we would lose the fold-down third row that gave us two additional seats, convenient for when out-of-town family came to visit.
Granted, the cost of electric vehicles will come down as the cost of batteries continues to fall and with growing economies of scale. Chevrolet earlier this year introduced its all-new 2022 Bolt EUV, an electric SUV that starts around $32,000. There are still some federal subsidies available for electric vehicles, and more families will be able to afford them as more electric vehicles enter the used-car market.
But until then, gasoline powered vehicles remain the only affordable option for many families, even if it’s not the most environmentally friendly. Our Outlander gets close to 30 miles per gallon, not bad for a sevenseater SUV.