Electric trucks are gaining traction, but a significant question for many businesses and fleet managers remains: Electric Truck Prices. Why do they often come with a higher price tag compared to their traditional diesel counterparts? This analysis delves into the pricing dynamics of electric trucks across different weight classes, leveraging truck price data to understand the factors contributing to these costs.
A detailed dataset from Price Digests, formerly known as the “Truck Blue Book,” provides insights into the characteristics and prices of various trucks. This data encompasses trim-level specifics such as weight, horsepower, manufacturer, size class, price, fuel type, model year, and crucially, battery size for electric models. By examining this data, we can effectively compare electric and diesel truck prices across light-duty, medium-duty, and heavy-duty categories, while controlling for other influencing factors like horsepower, weight, size, and wheelbase.
To isolate the impact of electrification on price, a regression analysis was conducted using data from model years 2021–2023. This approach allowed for a direct comparison of Manufacturer’s Suggested Retail Prices (MSRP) between electric and diesel trucks, holding vehicle characteristics constant. The analysis focused on light-duty and medium-duty categories, providing a clear picture of the price differential attributable to the electric powertrain.
One significant factor influencing electric truck prices is the battery cost. To quantify this, the study calculated battery expenses based on average battery sizes for light, medium, and heavy-duty trucks. Using industry benchmarks for battery costs in 2021, which ranged from a global average of $118 per kilowatt-hour (kWh) to a higher $157/kWh in the United States, a range for battery costs was established. These figures were then compared to the observed price differences between electric and diesel trucks.
The findings reveal a clear relationship between battery costs and the premium on electric truck prices. For light-duty and medium-duty trucks, a substantial portion of the price difference can be attributed to the cost of the battery pack. While heavy-duty electric trucks also exhibit a price premium, the analysis allows for a nuanced understanding of how battery technology impacts the overall cost structure of electric commercial vehicles across different weight classes. This deeper look into electric truck prices is crucial for businesses considering transitioning to electric fleets and for policymakers aiming to promote electric vehicle adoption.
