Electric van company Workhorse announced today that it will provide 50 custom-made all-electric vans with 100 miles of range to UPS for a price lower than that of comparable off-the-shelf diesel vans, without subsidies.
Getting cost-competitive with diesel vans in acquisition price is a big step, especially because total cost of ownership (TCO) is expected to be lower on electric vehicles. That means the Workhorse vans could be significantly cheaper than comparable vans over time.
TCO is generally lower on electric vehicles because fewer moving parts means less maintenance and, as long as filling up a tank with gasoline costs more than charging up a car on electricity, electric vehicle owners can expect to save over the lifetime of the vehicle. But electric vehicle upfront cost tends to be higher than that of a traditional vehicle because lithium-ion batteries are relatively expensive.