'Overcharged': Major Study Reveals Alarming True Cost of Owning an EV, 'Fueling' Equal to $17.33 Per Gallon
A new study called “Overcharged Expectations” claims that without federal subsidies, the real cost of fueling an electric vehicle would amount to $17.33 per gallon of gasoline.
The study from the Texas Public Policy Foundation said electric vehicles do not stand alone in comparison with other vehicles because of the “wide array of direct subsidies, regulatory credits, and subsidized infrastructure that contribute to the economic viability of EVs.”
“Adding the costs of the subsidies to the true cost of fueling an EV would equate to an EV owner paying $17.33 per gallon of gasoline. And these estimates do not include the hundreds of billions more in subsidies in the Inflation Reduction Act,” the report said.
The study claims that a 2021 electric vehicle “would cost $48,698 more to own over a 10-year period without $22 billion in government favors given to EV manufacturers and owners” and said traditional gasoline-powered vehicles are cheaper than an electric vehicle without subsidies.
“It is not an overstatement to say that the federal government is subsidizing EVs to a greater degree than even wind and solar electricity generation and embarking on an unprecedented endeavor to remake the entire American auto industry,” the report said.
According to the study, about $22 billion in various federal and state forms of aid have artificially lowered the price of a 2021 electric vehicle by almost $50,000.
The report further estimates that the cost to other people for the strain on the power grid from charging electric vehicles comes out to $11,833 over 10 years, funded by taxpayers and utility ratepayers.
While everyone else pays more, state and federal subsidies shave $8,984, on average, from the real cost of an electric vehicle over 10 years, the report said.
The study from the Texas Public Policy Foundation (TPPF) found, for example, that the average 2021 electric vehicle “would cost $48,698 more to own over a 10-year period without $22 billion in government favors given to EV manufacturers and owners.” https://t.co/bu1hwp7Sma
— Bud Brigham (@bmbrigham) October 27, 2023
“The stark reality for proponents of EVs and for the dreamers in the federal government, who are using fuel economy regulations to force manufacturers to produce ever more EVs, is that the true cost of an EV is in no way close to a comparable,” the report said.
The report noted that consumers have taken to hybrid vehicles far more than electric vehicles, adding, “Perhaps if D.C. politicians and bureaucrats stop trying to force Americans to build and buy their preferred types of vehicles, the cleaner and brighter future that they imagine will actually materialize.”
“It’s time for federal and state governments to stop driving the American auto industry off an economic cliff and allow markets to drive further improvements in cost and efficiency,” the report stated.
In a release on the foundation’s website, study author Jason Isaac said that the cost on the sticker of an electric vehicle hides a lot.
“The Biden administration and leftist states such as California have pushed for widespread electrification in less than 20 years through government subsidies and coercive regulations, but the price you see in the lot is not the true cost of an electric vehicle,” he said.
“Electric vehicle owners have been the beneficiaries of regulatory credits, subsidies, and socialized infrastructure costs totaling nearly 50 thousand dollars per EV. These costs are borne by gasoline vehicle owners, taxpayers, and utility ratepayers, who are all paying a hefty price for someone else’s EV,” he added.
“Proponents of EVs have falsely pushed the claim that EVs will soon cost less than gas-powered cars. This study shows that EVs are still a long way from being competitive without massive subsidies,” study author Brent Bennett said.
“The Biden administration’s stringent fuel economy standards and regulatory manipulations are driving American automakers toward bankruptcy and adding thousands of dollars to the cost of every gasoline vehicle. Rolling back these subsidies and burdensome regulations would save consumers money and stop the auto industry from falling off a financial cliff,” he said.
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