Despite the COVID-19 crisis, electric vehicle sales break records, says the chief analyst of Alpho Milosh Pham. In Germany, their sales almost doubled from the first half of 2019 to the first half of 2020. The falling sales of regular petrol-powered cars of at least 20% are also important. 

The surge in demand for electric cars is accompanied by extremely bullish market sentiment reflected in the development of Tesla’s share prices. Deloitte estimates that by 2030, global sales of electric cars might achieve 21 million. It comes as no surprise in the current situation that new models of electric cars constantly occur on the market. The first purely electric SUV has been presented by the Czech car producer Škoda this week. 

Let us take a closer look at the growth of electric vehicle sales. Tesla started producing its Model S in 2013. At that time, the carmaker produced 20,000 vehicles annually. Five years later, electric vehicle sales topped 360,000 in the U.S., and in mid-2019, global sales of electric vehicles amounted to 530,000.

The massive growth occurred despite the high acquisition cost of electric vehicles, which is gradually decreasing. The median of sales prices of electric vehicles in the U.S. slightly increased to USD 36,600 last year, yet the regular price of an electronic car dropped by more than 13% from USD 64,300 to USD 55,600.

The future of the electric car business is open for both environmental and economic reasons.

Electricity is relatively cheap compared to crude oil and we are able to generate it from renewable sources of energy. Moreover, we can be sure that there will be technological progress in the methods of electric power generation.  

At present, we are able to use nuclear power plants to generate huge amounts of electricity but what if we figure out how to use the fusion power? It is far more stable and a single plant could produce more energy than the whole world needs. We can thus assume that the price of oil will inevitably rise while the price of electric energy is going to fall. 

Replacing a fossil fuel car with an electric vehicle may be an economic step leading to a future saving which also helps the environment.