The Opportunity:
The Promise of Electric Vehicles
Because EVs are much more efficient at converting energy into motion, Consumer Reports estimates they can save drivers 60% on fuel costs compared to a similar gasoline-powered vehicle. And because EVs have far fewer moving parts that may break or wear out and don’t require fluid changes, they can cut maintenance costs in half.
A single mother of two, working a low-wage job could save $1,500 per year driving an EV - that’s enough to cover a month of food and nearly enough to cover a month of rent. Over time, that kind of savings can improve a low-income family’s financial trajectory, helping them climb faster and farther up the economic ladder. That’s why China and India have taken a “bottoms-up” approach to EVs, ensuring they are affordable for low-income households.
An electric vehicle can save a low-income family $1,500 a year in fuel and maintenance - that’s enough to cover a month of rent.
The EV Gap
New and Used EVs Remain Out of Reach
In the U.S. a “top-down” approach to Electric Vehicles prioritizes high-performance luxury models that serve only upper-income households. The average price of a new EV remains over $50,000, while affordable used EVs are scarce and have very limited range.
In fact, an analysis by GoodWheels of used EVs for sale within 100 miles of Baltimore, MD found that fewer than 1% of EVs were priced below $10,000. Among those options, the average vehicle was 10 years old and the original battery range was just 84 miles. After 10 years on the road, the actual battery range of these vehicles is likely 50 miles or less.
Now the repeal of federal rebates have put EVs even further out of reach for low-income households, just as tariffs are also increasing the cost to repair their old and unreliable cars. Without intervention, a widening “EV Gap” may actually increase economic inequality.
“It would just help tremendously and alleviate a lot of stress and weight of your shoulders.”
— Krystal, 37 year-old single mother