We recently compiled a comprehensive report detailing the 15 Cheapest Electric Cars & SUVs for 2024. In this article, we’ll be taking a look at the electric vehicle market and the cheapest electric car for 2024.
Overview of the Electric Vehicle Market
The electric vehicle (EV) market is playing a vital role in the global transition to sustainable transportation. Rising consumer interest in eco-friendly transportation options has led to a surge in demand for electric vehicles. According to the International Energy Agency (IEA) EV sales have been growing rapidly, reaching nearly 14 million units in 2023, 95% of which were in China, the US, and Europe. In the US, sales of electric cars increased by over 40% in 2023 to reach a sales share of about 10% of the total vehicle market. The share of electric cars in global vehicle sales has also increased significantly, rising from around 4% in 2020 to 18% in 2023. This momentum is expected to continue through 2024. In the first quarter of 2024, more than 3 million electric cars were sold, representing an increase of about 25% compared to the same period in the previous year.
Car manufacturers around the world are shifting their product focus and investment towards electric vehicles. This strategic shift is driven by the growth in EV sales. General Motors Company’s (NYSE:GM) EV sales in the US surged in the second quarter of 2024, with deliveries reaching 21,930 units. This marks a 40% increase year-over-year and a 34% rise from the previous quarter. In the first half of 2024, General Motors Company (NYSE:GM) delivered a record total of 38,355 electric vehicles. Ford Motor Company (NYSE:F) also saw impressive EV sales growth, with deliveries jumping 61% in Q2 to 23,957 units. The car manufacturer’s EV sales for the first half of 2024 totaled 44,180 vehicles.
Tesla, Inc. (NASDAQ:TSLA), one of the most valuable electric car companies in the world, delivered approximately 444,000 vehicles in the second quarter of 2024, marking a 14% increase from the previous quarter. Despite being down nearly 5% from the same period in 2023, this figure exceeded most analysts’ expectations.
In one of our previous articles about the largest automotive markets in the world, we discussed that China is heavily investing in EV production and Chinese manufacturers are emerging as major global players. These companies are disrupting the automotive market, both domestically and internationally, by offering affordable and technologically advanced EVs. However, on July 4, Bloomberg reported that the European Union has imposed additional tariffs of up to 37.6% on Chinese electric vehicles, on top of the existing 10% duty. This move is aimed at protecting the EU’s domestic automotive industry, which the bloc claims is facing unfair competition from Chinese EVs that benefit from government subsidies. The tariffs will currently be provisional while the EU continues its investigation into China’s support for its EV manufacturers. This decision is seen as a major blow to China’s electric vehicle exports, as the EU is a crucial overseas market for the country’s EV industry. The tariffs could lead to higher prices for EVs in the European market, potentially impacting affordability for consumers.
On July 8, Reuters reported that China’s BYD Company Limited (SHE:002594), Tesla, Inc.’s (NASDAQ:TSLA) rival and the largest EV producer in the world, has agreed to build a car factory in Turkey. The company will invest about $1 billion in the factory, which will have an annual capacity of 150,000 electric and hybrid vehicles. Additionally, BYD Company Limited (SHE:002594) intends to establish a research and development center at the site focused on sustainable mobility technologies. It is important to note that Turkey is in a customs union with the European Union, which allows vehicles manufactured in Turkey to be exported to the EU without incurring tariffs.
Rivian: The Next Big Player in the EV Market?
Rivian Automotive Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer and automotive technology company. The company develops and builds technologically advanced and innovative products and accessories with the goal of accelerating the global transition to zero-emission transportation. RIVN is one of the best EV stocks to buy for the long term.
In March, Rivian Automotive Inc. (NASDAQ:RIVN) introduced its new midsize platform, which underpins R2 and R3 product lines. The R2 is a five-seat SUV that features a distinctive Rivian design and practical features like a powered rear glass hatch and flat-folding seats for cargo and camping. The R3 is a midsize crossover that promises strong performance, off-road capability, and ample passenger and storage space. R3X is a performance variant of R3, boasting enhanced capabilities for both on-road and off-road driving. The company has focused on cost-efficient manufacturing and design to price the R2 starting at around $45,000. R3 will be priced below R2, making these new models more accessible to a wider customer base. Built on Rivian’s all-new midsize platform, R2 and R3 have been engineered to provide exceptional performance, range, and cost efficiency. This platform incorporates innovative design elements that consolidate and eliminate components. The use of high-pressure die castings, a structural battery pack that also serves as the floor, and simplified closure systems are some of the key features that contribute to enhanced efficiency and cost-effectiveness.
In its Q1 2024 earnings report, Rivian Automotive Inc. (NASDAQ:RIVN) reported that the company exceeded its first-quarter delivery targets and successfully completed a major plant retooling upgrade. During the first quarter, the electric vehicle manufacturer produced 13,980 vehicles and delivered 13,588 units to customers. The company also announced the transition to a new zonal network architecture, which significantly reduced the number of electronic control units in its vehicles by approximately 60%, resulting in substantial cost savings. RIVN is making steady progress and the completion of the plant retooling upgrade positions the company to enhance production efficiency and meet growing customer demand for its innovative electric vehicles.
On June 25, Rivian Automotive Inc. (NASDAQ:RIVN) and Volkswagen AG (ETR:VOW3) announced their intention to form a joint venture to develop advanced electrical architecture and software for their future electric vehicles. German automaker Volkswagen AG (ETR:VOW3), one of the biggest car manufacturers by revenue, will invest up to $5 billion in US electric vehicle maker Rivian Automotive Inc. (NASDAQ:RIVN). The partnership aims to combine the companies’ complementary strengths to accelerate software development and reduce costs. Rivian Automotive Inc. (NASDAQ:RIVN) will contribute its expertise in zonal hardware design and integrated technology, which will serve as the foundation for the joint venture’s software-defined vehicle (SDV) platform. This investment and collaboration is expected to help Rivian Automotive Inc. (NASDAQ:RIVN) reduce costs related to vehicle components and materials. However, both automakers aim to achieve greater cost efficiencies in their EV programs by leveraging Rivian’s innovative zonal electrical architecture and software expertise to enhance the technological capabilities of future electric vehicles. Both companies plan to launch EVs benefiting from this joint venture in the coming years. RJ Scaringe, CEO of Rivian Automotive Inc. (NASDAQ:RIVN), told Reuters that the investment will provide Rivian with the financial resources it needs to bring its more affordable and compact R2 SUV models to market in early 2026, as well as fund the development of its upcoming R3 crossover vehicles.
Investments in EV technology and manufacturing are expected to drive significant growth in the EV market. This joint venture underscores the industry’s push towards more advanced, software-centric electric vehicle architectures.
Now that we have discussed what’s going on in the EV market, let’s take a look at the cheapest electric cars & SUVs for 2024.
A row of electric cars being charged simultaneously at a public charging station.
Methodology
We compiled a list of the 15 cheapest electric cars & SUVs for 2024. To collect data for our list of the cheapest electric vehicles available, we analyzed rankings of the cheapest electric vehicles on Car and Driver, InsideEVs, U.S. News & World Report, and TrueCar Inc. (NASDAQ:TRUE). We shortlisted electric cars and SUVs that were featured in at least two of these four rankings. We then ranked the 15 cheapest electric cars & SUVs based on their Manufacturer’s Suggested Retail Price (MSRP). This methodology allowed us to objectively determine the 15 cheapest electric cars and SUVs for 2024.
The Manufacturer’s Suggested Retail Price (MSRP) for each vehicle was obtained directly from the manufacturer’s official website. Please note that MSRP is subject to change over time. The prices listed reflect the data available on the collection date of July 4, 2024.
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The Cheapest Electric Car for 2024
1. 2025 Nissan LEAF S
Manufacturer’s Suggested Retail Price: $28,140
The 2025 Nissan LEAF S tops our list of the cheapest electric cars and SUVs for 2024. This all-electric compact car is an excellent choice for those looking to make the switch to an affordable, eco-friendly electric vehicle. With a 110 kW AC synchronous electric motor and a 40 kWh lithium-ion battery, the LEAF S trim generates 147 horsepower and delivers a driving range of up to 149 miles. It comes equipped with a quick charge port that allows for fast charging. It offers a user-friendly infotainment system, featuring a 7″ multi-function information display. The 2025 Nissan LEAF S has a modern interior that is both spacious and practical. It is packed with advanced safety features, including Automatic Emergency Braking with Pedestrian Detection, Lane Departure Warning, Blind Spot Warning, and Rear Automatic Braking. It also boasts a number of other convenient features such as e-Pedal and Automatic Temperature Control. The 2025 Nissan LEAF S has a starting MSRP of $28,140.
Want to learn more about the cheapest electric vehicles? Check out our comprehensive report detailing the 15 Cheapest Electric Cars & SUVs for 2024.
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