Anderson Economic Group (AEG) said in an analysis that due to the skyrocketing electricity prices in the United States and as inflated gas prices came down at the end of last year, the fuel cost for most internal combustion engine (ICE) vehicles was comparatively cheaper than charging an EV.
AEG is a consulting firm based in Michigan that offers research and consulting in economics, valuation, market analysis and public policy.
"In Q4 2022, typical mid-priced ICE car drivers paid about $11.29 to fuel their vehicles for 100 miles of driving. That cost was around $0.31 cheaper than the amount paid by mid-priced EV drivers charging mostly at home and $3 less than the cost borne by comparable EV drivers charging commercially," AEG included in the study.
The cost analysis considered the underlying cost of energy for gas, diesel and electricity, as well as road taxes and fees, added costs to operate a pump or EV charger and the cost to drive to a fueling station. The costs were calculated for vehicles driving 12,000 miles per year.
"The run-up in gas prices made EVs look like a bargain during much of 2021 and 2022," AEG's Patrick Anderson said. "With electric prices going up and gas prices declining, drivers of traditional ICE vehicles saved a little bit of money in the last quarter of 2022." (Related: Consumer Reports poll: Gas-powered cars more reliable than EVs.)
However, luxury EVs still enjoy a cost advantage against high-end gas-powered vehicles. According to the study, luxury EV owners spend $12.4 to drive every 100 miles on average if they charge their cars mostly at home. Meanwhile, it costs $15.95 for expensive electric car owners to charge at commercial charger stations in the fourth quarter of 2022.
On the other hand, luxury gas-powered car drivers spend $19.96 per 100 miles on average.
Apart from the fact that robocars are now more expensive to maintain and operate due to ever-soaring electricity prices, the repair of EVs also now comes with higher price tags. According to insurance carriers, they are sending low-mileage Tesla Model Ys, a popular all-electric compact SUV, to salvage auctions because they are too expensive to repair.
Reuters made an analysis based on online data from Copart and IAA, the two largest salvage auction houses in the United States, and found that the vast majority of more than 120 Model Ys that was totaled after collisions had fewer than 10,000 miles on the odometer.
Insurance companies usually "total" a vehicle – meaning they scrap it and reimburse the owner – if the estimated cost of repair is deemed too expensive.
The Tesla cars in the Reuters analysis were 2022 or 2023 models that were built at either the Fremont plant in Northern California or the Austin, Texas, plant.
During the electric automaker's fourth-quarter earnings call last week, the company's Chief Executive Elon Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners.
Musk also said "we want to minimize the cost of repairing a Tesla if it's on a collision," citing changes to vehicle design and software.
Visit RoboCars.news for more news related to electric-powered cars and AI-controlled vehicles.
Watch the video below that talks about how EVs are now more expensive to operate than traditional gas vehicles.
This video is from the Ezekiel34 channel on Brighteon.com.