One thing to keep in mind is that as great as the Model 3 appears to be (keeping in mind I lined up at 4AM on reveal day to get one), a 35K base car is not the car for the masses. And odds are that even getting one of those base spec models will take quite some time, probably 6 months at least after the car starts to ship.
Many in this thread are talking about battery costs going down, which is wonderful for Tesla stockholders as the company will make even more profit. That doesn't make the car cheaper (anyone heard Elon say that stage 4 of his plan is to cut the model 3 price?).
A 35K car isn't going to bring about the end of BEVs, not when you can get a 15K ICE car that gets 30-35 MPG. Argue all you want about ICE maintenance, you could drive the tires off that ICE car for 5 years (probably 7-8) and probably need nothing more than oil changes, tires, and maybe a set of brake pads. And newer brake pads can last quite awhile, and you could skimp on oil changes if you plan to dump the car after 5 years. And I'll bet that 15K ICE uses much cheaper tires.
A 20K difference in car price over 5 years is $333/month. Now I'm not saying a 15K ICE in any way compares to a 35K model 3, but it does get you from one place to another. And the fuel for it is available everywhere, and it fills up fast. And most people aren't buying $333 worth of gas a month, and making things even more troubling is that many in the US can't charge where they live (primarily talking about those in apartments, but applies to some with houses too).
As to what will happen (in the US) at least due to the 2025 CAFE standards? That depends on what is cheaper and/or convenient enough, a BEV or a hybrid. Batteries should be cheap enough at that point to have a cheap but decent BEV, but will there be enough charging capacity in hotels/rest areas/apartment complexes/public streets. For a little more than that 15K ICE you can get a Prius c hybrid, which nearly meets those standards today, and again can be filled up on nearly every street corner.
There are fringe examples, but they are only fringe so they don't count as much. In my case this is my boat, and the truck I use to tow the boat. Neither will be BEVs for the foreseeable future, or should I say make sense as BEVs (aka, I paid 3K for the truck, and drive it less than 750 miles a year towing the boat/going to Home Depot).
At the end of the day (in the US):
- BEVs need to be cheaper, without tax credits, and offer a good range. I'm thinking under 20K and 200 miles range at least.
- BEVs need readily available cheap highway and destination charging, cheaper than gas (when measured by mileage).
Until they can do those things BEVs simply won't be affordable or practical to the masses. I realize that both of these will happen, but the question is when. I'm thinking 8-10 years in the US, which oddly enough would coincide with those 2025 CAFE standards.