Many may doubt that the U.S. will see a drop in electric vehicle (EV) prices by 2025, especially given the current tariffs and potential actions from the Trump administration.
This skepticism is understandable, particularly since Chinese automakers, known for their affordability, have halted plans to enter the U.S. following the imposition of 100% tariffs on EVs manufactured in China as of September.
Nonetheless, it’s important to note that if BYD, a leading Chinese manufacturer, were to sell its entry-level EVs in the U.S., they would still have a significant price advantage, retailing for under $25,000 despite the tariffs.
The announcement from Faraday Future is particularly thrilling: this California-based startup has stated it will provide a business update on two prototypes from its FX line, the FX 5 and FX 6, during CES 2025.
In September, the company informed investors that the FX 5 would be priced between $20,000 and $30,000.
Depending on the exact pricing and the fate of federal tax credits, the FX 5 could emerge as the most affordable EV available in the U.S. right now.
As it stands, the Nissan Leaf holds the title for the least expensive EV in the U.S., starting at $28,140. Additionally, it’s eligible for a federal tax rebate of $3,750, which effectively lowers its price to around $25,000 until January 20.
The next contender for the lowest-priced EV is the 2025 Chevy Equinox, priced at $34,995 for the LT front-wheel drive model. The Equinox EV also qualifies for a $7,500 federal tax credit, potentially bringing its cost down to $27,495.
Tesla is also entering the affordability game, aiming to launch a new model priced below $30,000, inclusive of federal subsidies, in 2025.
However, with the incoming Trump administration reportedly planning to eliminate EV tax incentives, this could impact pricing dynamics significantly.
These variables might give Faraday’s FX 5 an opportunity to claim the title of the least expensive EV in the U.S.
If the FX 5 is priced at or below $25,000, it could be neck-and-neck with BYD’s budget-friendly offerings.
