In order to make room for Europe’s first series production electric vehicle, Daimler announced on Wednesday, December 12th that it is investing 200 million euros into the plant that currently build Smart Fortwo. Going on sale in the U.S. next spring, the Smart Fortwo Electric Drive will be priced at $25,000 before federal taxes. Considering the typically high price is one of the factors keeping many buyers away from going electric, Smart might have the right mixture on its hand for EV success.

On the other hand, this might not turn out to be the case after all; it is possible that range anxiety and uncertainty about how well the cars hold up over time might easily scare people away.

Carrying a starting price of $25,000, this car still costs a significant premium over its gas-powered counterpart which carries a starting price under $13,000 and already has a proven history. After considering the federal tax credits into account, the cost of the EV is drastically decrease to under $15,000. However, most Americans will probably second guess purchasing this vehicle due to limited charging infrastructures.

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