Electrification adds another cost. Though electricity is cheaper than gasoline, the average EV has a higher sticker price than its gasoline counterpart. For some automakers, like Tesla and Rivian, this is part of their strategy. First, start by building a high-end vehicle, creating the supply chains and charging network to support it. Then, after achieving economies of scale, start building cheaper vehicles. But so far, carmakers have continued to make more expensive models and have been slow to release cheaper EVs.