Tesla Starting Prices Lower Than Average US New Cars

Kelley Blue Book reports that the average price of a new car in the USA is $47,077 which is higher than the $45,000 price of a base Tesla Model 3. In California the Tesla Model 3 gets about $5750 in incentive discounts.

Growth in used vehicle values is expected to continue through the spring of 2022, according to a Manheim forecast.

Chip shortages, supply chain and now truck protests are limiting the production of traditional automakers.

Toytota will miss an annual production target of 9 million cars per year because of chip shortfalls.

Ford, GM and Toyota are having production impacted by the Canadian and other truck protests.

There is likely to be another 7 million car shortfall of new cars in 2022. This was the shortfall in 2021.

In 2021, chip shortages and supply chain caused Ford to lose 1.26 million units globally, Volkswagen Group lost 1.15 million and General Motors at 1.09 million.

Higher lithium, cobalt and nickel prices are increasing the cost of lithium nickel batteries. It has a lesser effect on iron LFP batteries. Tesla is less impacted because of Tesla locked in long term contracts.

Battery grade lithium prices are already trading at a record high of $35 per kilogram in Asia, and are likely to keep climbing to $50 per kilogram in the second half of 2022 and trade at around $52.5 per kilogram in January 2023.

Rystad Energy’s monthly price index suggests that prices for battery-grade lithium carbonate ex-works China rose to CNY 300,000/tonne in early January 2022, up nearly 43% from CNY 210,000/tonne a month earlier. The price for battery-grade lithium hydroxide ex-works China rose to CNY 290,000/tonne in early January from CNY 192,000/tonne in early December.

SOURCES- KBB, Manheim, Rystad Energy, Reuters, Ford, Toyota
Written by Brian Wang, Nextbigfuture.com

Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.

Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.

A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts.  He is open to public speaking and advising engagements.