The last several months have been messy for the electric vehicle industry, to put it mildly. Major players like General Motors, Ford and Mercedes-Benz are pumping the brakes on their electrification efforts, citing uneven and unpredictable consumer demand. Many drivers remain hesitant to go electric because they’re worried about a lack of charging stations and insufficient range.
Government policy—in the form of both carrots and sticks—has been crucial for driving the EV transition thus far and will continue to play a large role in some parts of the world, experts say. But other key tailwinds are coming into play besides generous subsidies or looming ICE vehicle bans. One big one: The economics of both making and buying EVs have gotten better and better as the industry has scaled up.