If you go below the $25,000 mark for new cars, going just by sticker pricing, you’ll find a tonne of options in less expensive gas-powered cars and crossovers, some of them hybrid. But there are no EVs in that price range.

This is a price point that the manufacturer, which includes Fiat and Jeep, would want to meet, according to Automotive Information, quoting Stellantis CEO Carlos Tavares. However, union disputes may be getting in the way to some extent. Tavares reportedly stated that middle-class EV affordability was something the company wanted to focus on with union partners, but the UAW told Automotive News that Stellantis’ business model is broken and that it can make affordable EVs in the U.S. without needing to ask for workers to give up in terms of wages or benefits.

In 2024, Stellantis will begin selling the around $27,500 Citroen e-C3 electric vehicle in Europe. In line with the VW ID.2all idea, Volkswagen has promised a low-cost EV for Europe in 2025 in a comparable price range.

Going just by sticker pricing, no automakers now attempt to meet even that price point in the United States (obviously, there’s more to this, so continue reading). The Nissan Leaf and the Chevy Bolt EV are the only two EVs that will cost less than $30,000 with all essential costs in 2023, each at $28,895 and $27,495, respectively.

While GM recently confirmed that both a redesigned Bolt EV and the 2024 Chevrolet Equinox EV are arriving soon at that price range, GM CEO Mary Barra stated in May that sub-$40,000 EVs can’t still be financially rewarding.

The $30,000 Equinox EV will be made in Mexico out of those two. Given that manufacture of electric trucks is presently taking place at the Bolt EV’s current Michigan manufacturing facility, it is unknown where the vehicle will eventually be produced.

Another company, Fisker, might be able to break the code with a $30,000 American-made EV, if not a $25,000 1. The $29,900 Fisker Pear might be developed at GM’s former Lordstown, Ohio, production facility if it manages to reach an agreement with Foxconn.

The $25,000 EV is sort of here already.

The battery pack—not labor—is the main factor that can increase the cost of manufacturing EVs in comparison to gasoline-powered models. The cost of EV batteries will increase in 2022, and prices aren’t expected to decrease again, which presents a problem for automakers trying to control costs. Federal incentives can help lower the cost of domestic batteries and perhaps reduce the cost of American-designed EVs by up to $7,500 through the EV tax credit score—or even more with state-specific incentives.

For instance, the Bolt EV already qualifies for the $7,500 EV tax credit, so its current effective price, assuming you can find a base model and meet the tax credit’s profit requirements, is $19,995. If you take into account the credit history, the Equinox EV is also likely to match some, if not all, of the American-made standards and might therefore cost less than $25,000.

Tesla teased a $25,000 price tag and a 2023 battery working day

One of the key components of Tesla’s 2020 Battery Working day was price. At the time, Tesla explained that by halving the cost of battery cells, the company will be able to produce a “compelling” $25,000 electric vehicle by 2023. Tesla hasn’t provided a thorough update on how that project might proceed, and CEO Elon Musk has occasionally seemed to try to downplay the possibility, but the company has more recently stated that it needs a more affordable EV than its Model 3 and Model Y.

However, Tesla hasn’t said where it would produce this kind of product for the United States, or whether it will choose to import the EV, battery, and all from China like Volvo did with its most affordable EV, the EX30.