Total Cost of EV Ownership

For the first time, analysis suggests that the total cost of ownership, meaning the total cost to own and operate an electric vehicle, accounting for inputs such as purchase and fuel prices for EVs, is more attractive than its internal combustion engine counterparts. That is the key finding of a recent report.

There are cautions, however, that significant challenges to broader EV adoption stand in the way, such as higher incremental purchase price and limited capacity, battery supply chain constraints, and lack of access to reliable charging. What does this all mean for the future of the EV industry?

PUF sat down with an author of the report, Michael Bakunin, FTI Consulting Managing Director, for an in-depth look at the findings. Listen in as he explains the outlook for the EV industry.
 

PUF's Steve Mitnick: FTI issued a thorough report on total cost of EV ownership and how it contrasts with combustion engine cars. What caused this deep dive? What was the thinking and what did you want to accomplish?

Michael Bakunin: We do this type of research to track what's happening in the industry. Total cost of ownership is the key parameter for fleet owners to decide whether or not they want to transition from gasoline vehicles to electric vehicles.