Given existing tariffs and what’s in store from the Trump administration, you’d be forgiven for thinking the global race toward lower electric vehicle (EV) prices will not reach U.S. shores in 2025.
After all, Chinese manufacturers, who sell the least expensive EVs globally, have shelved plans to enter the U.S. market after 100% tariffs were imposed on China-made EVs in September.
It’s still noteworthy to know that should Chinese giant BYD sell its most affordable EVs stateside, they would still be the least expensive EVs on the U.S. market, being priced under $25,000, even after the tariff.
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That makes the announcement from Faraday Future all the more exciting: The California start-up firm says it will provide a business update on two prototypes of its FX brand, the FX 5 and FX 6, at CES 2025.
Back in September, Faraday told investors that the FX 5 would be priced somewhere between $20,000 and $30,000.
Depending on the actual price, and the fate of existing federal tax credits, the FX 5 could effectively become the least expensive EV sold in the U.S.
Currently, the Nissan Leaf EV, with a starting price of $28,140, remains the least expensive EV available stateside. It’s also still eligible for a federal tax rebate of $3,750, bringing its effective price closer to $25,000, at least until January 20.
The next-least-expensive EV is the 2025 Chevy Equinox, priced at $34,995 for the LT model with front-wheel drive (FWD). The Equinox EV qualifies for a $7,500 federal tax credit, which can bring the price down to $27,495.
Tesla has also recently joined the fray toward affordability, with the automaker signaling the 2025 launch of a new sub-$30,000 model, including federal subsidies.
However, the incoming Trump administration is reportedly planning to end the tax incentives on EVs.
All these expected developments leave some wiggle room for Faraway’s FX 5 to offer the lowest price point to win the title of most affordable EV in the U.S.
And if the FX 5 were to be priced at or below $25,000, it could even rub shoulders with BYD’s least expensive EVs.