In the face of recently announced tariffs exceeding 100% on Chinese electric vehicles (EVs) bound for the United States, one automaker remains committed to bringing affordable EVs to American consumers. Eli Electric Vehicles is grappling with the implications of the new tariff rate on its plans to introduce a less expensive electric micro-car in the U.S. The company is headquartered in Los Angeles but has manufacturing operations in China.
“We know there’s a strong, unfulfilled demand for affordable EVs in America,” James Seargent, head of U.S. operations for Eli Electric, said. “We are aware of the tariff communication that came through and I think one of the major components here is that it is an opportunity for us to look at how can we make sure that we are being very efficient with our supply chain.”
The compact dimensions of the company’s micro-car, the Eli ZERO, hold the potential to help the car remain relatively inexpensive.
“This is a targeted tariff on some of the vehicles that came through,” Seargent said. “We’re really evaluating how that fits with us as micro-EV manufacturer, and the [low-speed electric vehicle] space in America, it’s a little bit different than golf carts, but also a little bit different than full-size electric vehicles.”
High costs have long stood as a significant barrier to widespread EV adoption in the United States. Eli Electric sees leveraging China’s dominant EV supply chain as a means to drive prices down. Additionally, the company’s leaders also hope the company can facilitate the transition to electric mobility for American drivers.
“We actually have a subsidiary of our company, Eli Electric Vehicles, in China, particularly to be close to the supply chain,” Seargent said. “It’s the fact that we’re able to be there to see it, to build those relationships, and understand what we should utilize for our vehicle and kind of roll with that EV hub in that area. That’s what it really is going to be set us apart.”
Eli Electric currently manufactures the Eli ZERO, a street-legal vehicle boasting a range of up to 90 miles, in Shanghai. The manufacturer bills the car as an automobile capable of bridging the gap between micro and full-sized cars. The ZERO offers a range of features including power-assisted steering, radar parking sensors, a Sony infotainment system and more. All that comes at a cost of under $12,000. It is a price point which Eli Electric aims to keep steady despite the Biden administration’s new trade rules.
U.S. customers already started reserving their Eli ZERO models through a fully refundable $200 deposit with the company. Eli Electric anticipates a pre-Christmas debut on American roads. The EV manufacturer plans to make the ZERO available through local distributors and dealer partners nationwide.