Joanna Stern, senior tech columnist for the Wall Street Journal, shed light on the cost-effectiveness of charging electric vehicles (EVs) at home. Despite the initial high costs, Stern found that home charging led to significant savings over time.
What Happened: Stern recently wrote a column on WSJ about how she saved hundreds of dollars by charging her EV at home. During CNBC's "Last Call," Stern shared that she spent $125 to charge her EV at home, which covered a distance of 2500 miles.
"I am saving half the amount I would [spend] if I was using gas. And this is what is happening across the country," she said.
How much are Americans saving when they charge their EV at home? @JoannaStern crunches the numbers. pic.twitter.com/FORw2hgy5G
— Last Call (@LastCallCNBC) March 28, 2024
Comparing this with the costs associated with an internal combustion engine (ICE) car, she found that she was spending almost double on gas in New Jersey, at $3 per gallon, for the ICE vehicle owned by her family.
However, she also noted that EV manufacturers are not adequately informing customers about how to recoup their initial investment or where to find subsidies. The initial cost of installing a home charger can range from $300 to $700, with the installation process adding $300 to $1000.
Why It Matters: Stern's experience underscores the potential long-term cost benefits of EVs.
Despite these initial costs, companies like Tesla Inc. (NASDAQ:TSLA) are making strides in making home charging more accessible. In 2023, Tesla announced a new unlimited overnight home charging program for $30 per month. This move is expected to further boost the adoption of EVs.
Moreover, the EV charging landscape is witnessing a shift, with companies like Wallbox (NYSE:WBX) working hard to address the unique challenges the evolution of the industry is presenting. The focus is shifting towards integrating charging at places where vehicles are typically parked for extended periods, like homes and apartments, which will make up 80% of total charging ports in the U.S.
Furthermore, competition in the EV charging sector is heating up, with startups like Dunamis Charge and major automakers like BMW, Mercedes-Benz, and others challenging Tesla's dominance. These companies are addressing affordability and accessibility barriers to EV adoption in urban communities.
