That’s assuming that General Motors sells roughly 30,000 units per year, says UBS analyst Colin Langan, meaning relatively few sales for General Motors to spread its research and development costs over. But “the big driver” that could help combat GM’s Bolt EV losses in the future is battery cost, he says. “Battery costs are going from, you know, over $200 per kilowatt-hour today, and we estimate it will be around $130 per kilowatt-hour” by 2025.
Some components in the powertrain could also become less costly in the future, Langan says: “We also assume there are certain components – and that was part of our expert analysis – that have a good step function coming down on the EV powertrain that will also help.” UBS estimates that the Chevrolet Bolt EV’s powertrain today contributes about a $9,000 cost premium, but that by 2025, it would only represent about another $3,000 to $4,000 versus a comparable gasoline powertrain.
In the Bloomberg video above, Colin Langan talks to the outlet about the Chevrolet Bolt EV, as well as one of its biggest forthcoming competitors: Tesla Motors’ $35,000 Model 3. That car is expected to offer a battery-electric range similar to that achieved by the Bolt, while only losing Tesla an estimated $2,800 per unit.
Click play to get the full scoop.