Comment by audunw

The electric car does illustrate what happens to prices well.. but I just want to point out that those incentives are not necessarily meant to decrease prices. The incentives are as much for EV car companies as it is for the consumer. Giving them better margins makes them motivated to keep investing in EVs and coming out with new models. It encourages them to do marketing for those EVs since they can actually get some profit from selling them.

One of the reason why EVs was going nowhere for so long was there was no incentives for the car companies since there were no prospects of increasing profits by selling EVs.