Volkswagen, the German car maker, laid out plans to produce a cheap electric vehicle (EV). Its new electric ID.2ALL model, an electric vehicle that costs less than 25,000 euros or $26,500, was presented in Hamburg, Germany, on March 15.
The key point is that the EV is cheap, even though the automaker has not said exactly when it will be available for sale. It is not clear even whether the cheap EV will be sold in the U.S.
All that the company has said is, "Volkswagen will present the production version of the ID. 2all for the European market in 2025." The car will be a front-wheel drive model with a range of up to 450 kilometers.
In addition, the company said it's also working on an electric car at a price below 20,000 euros. It has not said when this model will be available.
Some analysts say that this puts Tesla in a quandary. Its cars have high price points, but they are not considered luxury EVs in the market. This is exactly where Volkswagen is trying to enter the market - a non-luxury EV at a lower price point than Tesla EVs.
One analyst says that the new ID.2ALL will be similar in look and feel (performance) to a VW Golf GTI model:
" The front-mounted motor delivers 166 kilowatts (222 horsepower), about the same power you get in a base VW Golf GTI. This enables Golf GTI-like acceleration from zero to 62 mph (100 kph) in less than 7 seconds."
The bottom line is that EVs are now starting to get to the level that regular people can actually afford them. That assumes that Volkswagen actually gets this EV into production in the next two years or so.
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Mark R. Hake, CFA, writes articles on national and local news, stocks, and market events at InvestorPlace.com, Barchart.com, Medium.com, and Newsbreak.com as well as TalkMarkets.
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