With tariffs in place and the Trump administration's expectations, one might think that the global race to lower electric vehicle (EV) prices won't reach U.S. shores in 2025.
Finally, Chinese manufacturers, which sell the world's cheapest electric vehicles, have put their plans to enter the US market on hold after 100% tariffs were imposed on Chinese-made electric vehicles in September.
It's still notable to know that if Chinese giant BYD sells its most affordable electric vehicles in the US, even after tariffs, they would still be the cheapest electric vehicles in the US market, priced at under $25,000 .
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The announcement from Faraday Future is all the more exciting: The Californian start-up company announces that it will provide a business update on two prototypes of its FX brand, the FX 5 and the FX 6, at CES 2025.
Back in September, Faraday told investors that the price of the FX 5 would be between $20,000 and $30,000.
Depending on the actual price and the fate of existing federal tax credits, the FX 5 could actually become the cheapest electric vehicle sold in the US
Currently, the Nissan Leaf EV remains the cheapest electric vehicle available in the US, with a starting price of $28,140. It also remains eligible for a $3,750 federal tax refund, bringing the effective price closer to $25,000, at least through Jan. 20.
The second cheapest electric vehicle is the 2025 Chevy Equinox, priced at $34,995 for the front-wheel drive (FWD) LT model. The Equinox EV is eligible for a $7,500 tax credit, which can bring the price down to $27,495.
Tesla also recently joined the fight for affordability, announcing the launch of a new model priced under $30,000 in 2025, including government subsidies.
However, the new Trump administration reportedly plans to eliminate tax incentives for electric vehicles.
All of these expected developments leave Faraway's FX 5 some room to offer the lowest price and win the title of most affordable electric vehicle in the US
And if the FX 5 were priced at or under $25,000, it could rival even BYD's cheapest EVs.
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