this post was submitted on 05 Mar 2025
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I obviously don't understand the economics of it and I realize that China will always have the upper hand on price but is there a reason every western EV has to be $40,000+? Like surely it's possible to build a barebones model for less than 30k right - especially if I don't need or even want touch screens or fancy interior materials or heated seats or anything.
I imagine China is subsidizing the R&D of their EVs while American car companies are trying to recoup those costs
Every major country subsidizes R&D. That's what federal research grants are all about. The NSF, NIH, etc do exactly that.
Other US subsidies on EVs aren't specifically restricted to R&D but US companies could apply it to that, if they want.
edit: typo
also many US companies are pocketing those subsidy money to pay the CEOs anyways.
China has been subsidizing EVs since 2010.
Longer than that. China has been promoting battery technology as a strategic initiative since the 90's.
Definitely related. EVs are relatively new technology and internal knowledge for engineering R&D, materials, and manufacturing infrastructure all have to be spun up. All this, and you need marketing/planning folks to decide on what sort of vehicle will sell the best against their engineering capabilities.