Monthly Archives: February 2016

Tesla Stock Down! Cheap Gas Kills EV Car Sales, or Does It?

Will lower gas prices have a large effect on EV sales?

To a certain extent but there is a way that car makers could diminish the cheap gas advantage.

The Tesla has never been a car whose sales have been driven by high fuel prices. It’s appeal has been in performance and technology as well as status and muted luxury.

Anybody who has driven an EV loves the real world acceleration. By real world I mean 0-30. The burst of energy to change lanes or get on the freeway.

The average car takes much longer from a full stop to 30 MPH than an EV. From 30-60 it’s about the same time but the gasoline car spend from 30-60 catching up.

0-60 in 4 seconds is nice but in an ICE car that requires tens of thousands of dollars and an average MPG of around 12 MPG everyday to do that the very fews times you need that power. You just don’t need or can’t really enjoy your 700HP vehicle as much as you would like to.

Your 2 seat loud and obnoxious sports cars are the proverbial 12 inch penis. Impressive looking but not to many places that can handle all of it.

The only place cars like those have any use other than getting you a superficial mate are on the track. And they are actually more likely to get you tickets than they are a mate if you are not that good looking anyway that you need to buy the car to have women look at you.

Add to that most people with cars like that never take them to a track like many Jeep or 4×4 owners never take them off road and you have probably explained why most Americans think they are broke and don’t like to pay taxes.

Car makers have to stop only building tiny compact EV’s as well. While they might get the job done they aren’t impressive at all, don’t tell me that size doesn’t matter. Small might be able to fit in any parking spot but only the city dweller sees that as an advantage.  We don’t live in Europe.

Most Americans don’t fit in a Smart EV or Fiat EV.  We are large people. Many of us are over 6 feet tall and many are over 200 pounds. Or both. We need cars we fit in.

In order to get more people into the cars they need to be real world cars. The e-Golf and Mercedes B-Class are a nice start but they are still too expensive for only having 80 miles of range.

The new cars being announced with 200 mile ranges will start selling if you really build enough and sell them outside of the few CARB States.

They will outsell the Chevy Volt which still isn’t a 5 passenger car. The rear leg room is still to small. And the battery down the middle is just as bad as the Ford and their batteries across the truck or cargo bay. They will not find many new buyers. They will just keep many of the buyers they have. Unless they change to a flat battery pack under the floor.

The greatest thing about owning an EV, or even a Hybrid,  is rarely or ever having to stop to buy gas. Even if the price of gas is $1 per gallon. The approximate equilibrium price of gas to electricity as fuel for cars.

It really is nice to come home at night and just plug in your car instead of having to wait in line and pump gas.

The worst part now about driving any car is filling up the gas tank. It’s rare that I ever get the gas station to myself. Then after waiting in line for 5-10 minutes, I have to get out, swipe my card and spend 5 minutes looking at the guy next to me that cut in front or committed some breach of gas station etiquette.

With an EV you just pull into the garage, plug in and walk into the house and go about your normal business. You wouldn’t even think of buying a phone where you had to go to the store and buy new batteries every few days. Then through the dead batteries on the street like the emissions form your tail pipe.

With the advent of the 100 mile plus battery, which is enough for most peoples daily commute, that will be shortly followed by the 200 mile battery, the plug it in at night car that can work for 100% of your daily driving needs will be all you really need.

Add to that, no more oil changes, tune ups and all those other regular maintenance items that an internal combustion engine car has and you will be hooked.

That doesn’t even included all the environmental benefits.

A 200 mile range, 5 seats and a price tag of $30k in a sporty car like a VW Golf or Kia Soul might just be what it takes to get this evolution in transportation to catch on.

It will be interesting to see how Tesla responds to these challengers that are now taking the 200 mile advantage away from Tesla.

I don’t think it will be long before my 12 year old son looks at driving a gasoline powered vehicle like he does someone smoking a cigarette. We know smoking is hazardous to your health and does cause cancer. The same thing is true of ICE vehicles.

We are just not willing to admit it yet as we love our cars.

The automakers are just starting to give us EV’s we can love.

Thanks Elon. You’re the guy who got this party started. Hopefully you keep leading the way and not letting the Big 3 kill the EV like G.M. did in the past.

I don’t think the big automakers are going to rest unless you stumble and fall.

I don’t think Apple and Google will really be a threat to the Big 3 like Tesla. For some reason you’ve got them really scared even though you only build less than 10’000 cars a month.

I might just have to buy Tesla stock now that it back down to the Moon instead of Mars, a place you want to go. Once the price comes back down to Earth people wont think your shooting for the stars.

 

 

 

 

Chevy Bolt. Tesla Killer?

The Chevrolet 2017 Bolt EV

2017 Chevrolet Bolt

From what I’ve seen of the 2017 Chevrolet Bolt it is an impressive car.

A price tag of less than $30k  after tax breaks, 200 plus miles of range. Fold flat seats, lot’s of safety features and a rear view mirror that doubles as a rear view monitor. What’s not to like?

 

But will it kill the elusive not yet produced Tesla 3 as many predict? I doubt it. Contrary to popular belief, range isn’t everything.

What Tesla has that Chevrolet, and every other EV manufacturer doesn’t, are the following:

  • Supercharger Network.
  • Direct Sales
  • Their only cars are EV’s

Why is that important?

You can have a 200 mile range but if you don’t have anyplace to charge the car at a reasonable cost, and in a reasonable amount of time, the only thing that 200 mile range does is let you get farther from home before you have to stop for the night to recharge.

Most franchise dealers either don’t want to or don’t know how to sell an all electric vehicle. If you don’t walk into a car dealer asking to drive or buy an EV they won’t even tell you they have one. Try walking into a dealer some day and tell them you’re looking for something that 99% of the time all you do is drive to work and back and usually less than 70 miles a day and see what they tell you to buy.

What it will do, make Tesla up their game on standard equipment. The Tesla 3 won’t be able to sell less car than Chevrolet. But neither will any other EV manufacturer.

But, that brings me to another question. How many and in what States will Chevrolet actually make the car available? Do they really want to sell this car? Is it just another compliance car?

While California residents will probably buy the majority of Bolts, it will put Nissan on notice. The Nissan Leaf is getting old. Even with the new 110 mile battery it’s still like a 4 year old iPhone for the price of a new one.

The Ford Focus EV is still the best buy in my book and with an improved range of 100 plus miles and DC Charging will make it as useful as the Bolt and if it keeps it’s $30k price tag with all the standard equipment it has now it’s a far better deal than any other EV out there.

My favorite pricy EV’s are still the VW Golf SEL, Kia Soul EV and Mercedes B Class. They are going to have to make the interior of the Bolt really nice to compete in that market. Even VW had to unload a bunch of SL Models for $99 a month for 3 years last December. Stripped down models don’t sell well anymore.  The Leaf S is like buying a flip phone at a smartphone price.

I see some real deals in the near future on other EV’s when the Bolt comes out. If like most people, 80 miles of range works for you, like it does for me.  A similar featured compliance car like the Focus at $20k after Tax Rebate will be the better deal.

The biggest problem GM will have is that EV buyers usually know what they need and know how to do the math. And how many EV buyers “want” a Chevrolet? Lot’s of them want a Tesla. I know I do. They just haven’t made one that makes economic sense for the average person.

What it might do is help them sell more Volts. A car that is similarly priced, has suitable EV range for 99% of the time and can drive cross country once every few years to visit grandma.