The Age of Electric Cars Is Dawning Ahead of Schedule

Battery prices are dropping faster than expected. Analysts are moving up projections of when an electric vehicle won’t need government incentives to be cheaper than a gasoline model.

As car sales collapsed in Europe because of the pandemic, one category grew rapidly: electric vehicles. One reason is that purchase prices in Europe are coming tantalizingly close to the prices for cars with gasoline or diesel engines.

As electric cars become more mainstream, the automobile industry is rapidly approaching the tipping point when, even without subsidies, it will be as cheap, and maybe cheaper, to own a plug-in vehicle than one that burns fossil fuels. The carmaker that reaches price parity first may be positioned to dominate the segment.