Detroit automaker GM has confirmed that, after tax credits, the upcoming all-electric Chevrolet Equinox will be available for under $30,000 upon its release later this year.
The Equinox is set to qualify for the $7,500 federal tax credit under the Inflation Reduction Act, bringing the starting price of $34,995 for the base model down to $27,495.
This would put the Equinox SUV in a comparable price segment to the much anticipated TeslaModel 2, which is due for release in 2026.
However, GM's Ultium EV platform has faced issues in its ramp-up, including assembly delays and weight issues which have diminished the efficiency of the battery pack.
There is also a risk that a Republican victory in 2024 could mean an end to federal tax credits for the sector, which would damage the affordability of EVs across the market.
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The Equinox, which will enter production in Q1, is one of several upcoming all-electric SUVs that GM hopes will make its EV division profitable in 2024.
"We are...excited to have the Chevrolet Equinox EV and the Silverado EV RST, the GMC Sierra EV Denali, and the Cadillac Escalade IQ arriving in showrooms over the course of the year," Barra told investors at GM's Q4 earnings call.
Fellow GM brands Buick and GMC are also launching new crossovers this year.
A price of $30,000 has long been cited by the automotive industry as the point at which EVs will gain a cost advantage over ICE cars. The average transaction price of a first-hand car in the US in 2023 was $48,000, according to consultancy Cox Automotive.
But comparing prices between EVs and ICE vehicles is more complex than this, with a BNEF report finding that EVs in certain global markets have already achieved cost parity.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
