Watch Out Tesla: Hyundai and Kia is coming soon, like today

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The 2019 Kia Niro EV

The Hyundai Group (Hyundai-Kia-Genesis) is serious.    Hyundai’s popular Sonata and Elantra models as well has Kia’s Optima’s and Forte has seen huge declines in sales.  Like the most of auto industry, consumers are choosing SUV’s over passenger cars.  With one exception Tesla.  If you in any major city you have seen a Tesla.

There are more 2018 Model 3’s on the road than the Ford Fusion, Chevy Malibu, and Nissan Altima.

Elon Musk now has the worlds attention.  Within the next 16 months, nearly every automaker will have an electric vehicle with a range of at least 200 miles in their lineup. The problem is, most of the planned vehicles are out of the price range of the average car buyer.  Jaguar I pace starts at 69K , Audi’s E-tron with 240 mile range will hit the streets in April starting at 74K.

The Tesla Model 3 was supposed to be at 35K the affordable electric car.  However, few has seen one. The average Tesla is selling for a pinch over 50k.   Tesla says, they will begin offering the base model this spring.  If you buy the base model as advertised, it will have a range of 264 miles and if your sticking to that price you must like the color black. Any other color is a fifteen hundred dollar option.

General Motors electric offering is the Chevy Bolt.  For 35,000 you can get a nicely equipped Bolt with a range of 240 miles.   The designers at GM went the Prius direction when it came to styling.   A car that said, I’m driving  I’m driving an environmental friendly non polluting car. Unfortunately the Prius isn’t selling and the Chevy Bolt are accumulating dust at Chevy Dealerships.

Its a sound car and a good alternative to Tesla. Unlike Tesla, no one would call the Chevy Bolt sexy.

Enter Hyundai

Hyundai, developed its first all electric car in 1991.  In 2011, the Company introduced the Hybrid Sonata Hybrid to the US Market. Currently, the automaker has seven variations of Hybrid, Plug In Hybrid models including two all electric models the Kia Soul EV and the Hyundai Ioniq models.  Those two electric models have a range of less than 115 miles.

Last November, Hyundai announced they would sell an all electric version of the Hyundai Kona.  This car,while smaller than the Tesla has an all important range of  258 miles.  Only seven fewer miles than the standard Tesla model 3 and a well equipped model will begin at $37,000 excluding the $7500 Federal Tax Credit, no longer available on the Tesla***

The  Hyundai Kona, recently received the Prestigious “North American Utility Vehicle of the Year” a first for any Hyundai.   The Kona. should go on sale any moment in California. That’s the good news for California Residents.  The bad news, is there is a long waiting list.

However, the Kia is plans to release an all electric version of its Niro next month. The NiroEV is larger than the KonaEV. The two vehicles share the same  64-kWh battery  however the range on the NiroEV is 239 miles.    Unlike the KonaEV, the NiroEV will offer faster charging,  a CCS DC fast-charging setup, which can refill the battery to 80 percent in 75 minutes.  30 minute will add approximately 100 miles of range.

  Kia says the NiroEV will go on sale mid-to-late February and will be available in 12 states.  California, Connecticut, Georgia, Hawaii, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Texas and Washington.

Pricing for the Niro EV will began around 38,000 before the $7500 Federal Tax Credit.

What is the Federal Tax Credit and why is it no longer available on Tesla’s? 

The Federal EV Tax Credit is not a rebate on the price of the car that you get instantly when making the purchase. You have to apply to receive it when you file your annual tax return. You or your tax professional will fill out an IRS Form 8936, which is submitted with your return. Since it is a tax credit, you have to wait until you file your next year’s return before you will receive the tax incentive.

You cannot claim the tax credit until you take delivery of the new vehicle. Deposits and prepayments do not count. It is not available on leased vehicles.

Each vehicle manufacturer is allowed to sell up to 200,000 qualifying plug-in electric vehicles (battery-electric cars and plug-in hybrids) before the EV tax credit on their products begins to phase out.  This isn’t for one model, its applies to all EV models sold by a single Auto maker.

***Last year, Tesla sold nearly 150,000 Model 3’s,  When you include Tesla’s Model S and the Model X its has sold more than 200,000 cars.   To stay competitive, Tesla has reduced prices on all of their models.  

General Motors is projected to reach its maximum by late spring early summer**

In addition to the Federal Tax Credit,  some states are offering credits and rebates. Colorado is currently the most generous of the states, offering a credit of up to $5,000 that can be used in conjunction with the federal tax credit to save you up to $12,500 off the price of the car. In some cases, the incentives come in the form of an instant vehicle rebate.

California offers rebates up to $7000*  for residents on purchased and leased Electric Vehicles, plug in’s and fuel cell vehicle.  The state offers higher rebates for lower income car buyer.  *Unlike Colorado, California’s rebates are based on specific models and the is less you earn, the greater the rebate.

Sometime, Somewhere in 2019  “The 2020 Kia Soul EV “

The Kia Soul is Kia’s best selling model by a wide margin.  It is known for its generous interior space and urban dimensions.   It will also be powered by the same battery as the Kona EV, and the Niro EV.   The Kona and Niro storage is larger the the Soul’s but the Soul upright interior is larger.   The 2020 Soul’s are all new, and with an estimated range of 239 miles the 2020 SoulEV has more than double the driving range of the 2018 SoulEV . The release date of the SoulEv is unknown.  Some sources say next month, others say mid summer.

Currently on sale in California, is the first SUV fuel cell vehicle the Hyundai Nexo

with a base price of 59,000 and a range of 380 miles. Last month Hyundai sold 35 models.   The challenge for fuel cells vehicles, is refueling  stations.

If your keeping count, the Hyundai group has four electric vehicles, four plug in vehicles and one fuel cell SUV.

The demand is high for electric vehicles, with prices under 40K Hyundai will be Tesla’s largest competitor this year in the US.

While Tesla has an apple like following, Hyundai will put a sizable dent into Tesla’s sales by the third quarter of this year.    Tesla’s Model 3 was to be the peoples car, and its technology is superior to anything on Hyundai’s drawing board.   However, what separates these companies is price and service.

 Tesla, has a much smaller dealer network than the Hyundai Group and a shorter warranty.  However, many of Tesla’s fixes can be done electronically without the customer stepping into a service department.  Hyundai has more experience building cars.

If I wanted to buy an electric car today, are there any deals?  

With the exception of the European makes and the Chrysler Pacific plug in hybrid models, deep discounts are available.  There are also deep discounts for the lower range (less than 150 miles) all electric vehicles.

However, the best buy is on the all electric Chevy Bolt.  The Bolt has a range of nearly 240 miles.  When it was released, they sold quickly at full price.  Today, they are sitting on dealers lots.  Deep discounts and are available (check Chevy’s website for rebates) and as of this writing The Chevy Bolt still qualify for the full ($7500 Tax Credit-today**)  

How does the Niro Drive?

CityFella

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The Hyundai Kona EV is Coming to California

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Actually Hyundai’s Kona is already here and is being sold all over the United States and Canada. However, the Kona EV (Electric Vehicle) initially will only be sold in the Golden State.   The New Hyundai’s funky looking subcompact SUV was introduced last spring. 

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Hyundai Kona (W combustion engine)

Subcompact SUV’s are on fire and the Kona is what the struggling car maker needed.  Hyundai, Kia, Genesis group is car rich and SUV poor at a time when more people are buying SUV’s 

 Hyundai’s Kona is the first vehicle sold with a combustion engine and an all electric engine.    Hyundai says the Kona will have an electric range of  258 miles, which is higher than Nissan, the new Jaguar, the future Audi E tron and Chevy’s Bolt.  The only electric vehicle has a longer range, is Tesla. 

Timing

Pricing for the Kona EV starts at $37,000 before the $7500 Federal Tax Credit (for purchasers of an electric car ).   The Electric Kona should be on sales early next year, however only in California and eventually to the rest of the country.      

Tesla’s Model 3 is a bonafide hit. Out selling established players like, the Ford Fusion and the Nissan Altima.  As a result, by the time the Kona hits the market  Tesla buyers tax credit will be cut in half.   Tesla says they plan to sell a basic Model 3, at $35,000 base price, however this model with have a range of 220 miles. 

Yes Matilda, an Electic Car is in your future

Like the Model 3,   Kona EV is a hit before it hits showrooms.    Hyundai says, there is currently a 10 month wait for the electric vehicle.  While there isn’t much of a demand for cars these days there is a huge demand for electric vehicles.

Tesla’s Model 3, sold more cars than the entire brand of Mercedes, BMW, and Audi.  The Model 3, is the fifth bestselling car in the US,  only the Toyota Camry, Honda Civic, Honda Accord, and the Toyota Corolla is out selling the Model 3 and the average price of the Model 3 is more than double of those makes. 

Volkswagen, Mercedes-Benz and Volvo have committed billions to the Electric market.  Mercedes Benz may jointly build electric cars with Tesla.  Volkswagen and Ford are talking about jointly building electric cars. 

Big Man Rides

While I haven’t completed a full test of the combustion Kona, I like the funkyness of the car  But it is a subcompact. Leg room for this 6.4 giant was just ok, and its a narrow vehicle .  It was tolerable but only for small jonts. It put together well and rides well for a subcompact .   For big people the nice driving yet homely Chevy Bolt has more room and the price for the two are nearly the same , however the driving range on the Hyundai is a little longer. Average sized people  wont have issue with the Kona.   

As for SUV’s the  Hyundai Kona is exceptional.  Its the only Subcompact SUV that offers two engine choices, and the only Subcompact that offers 4 wheel drive*     *The Kona EV will is only offered as a two wheel drive car. 

So if you live in the other 49 states and want a Hyundai Kona EV you’ll have to wait.  and if you live in the Golden State and want a Hyundai Kona EV, you’ll need to zip on down to your nearest Hyundai dealer and leave your deposit. What we learned from the Tesla, the line will only grow longer. 

CityFella

Tesla shows how (5th best selling car in the USA)

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Image result for tesla model 3

   While drivers are abandoning cars for SUV’s  Tesla has quietly become the best selling Luxury car company in America.  Selling more cars than BMW, Mercedes Benz, Jaguar, and Lexus.

Last month, Tesla’s Model 3 was the 5th best selling car in the US.   This is not a misprint

1. Toyota Camry
30,141
2. Honda Civic
27,677
3. Honda Accord
26,725
4. Toyota Corolla
26,155
5. Tesla Model 3 (est.)
17,000
6. Hyundai Elantra
15,475
7. Nissan Altima
14,925
8. Nissan Sentra
13,314
9. Ford Fusion
11,286
10. Kia Optima
11,074

This follows reports we’ve written after discovering that Tesla production appears to be passing up Jaguar production globally, Porsche sales globally, BMW sales in the USA, and combined brand sales of all models in or near the Model 3 class in the USA. (cleantechnica.com)

Tesla is the only electric automaker with a supercharger network that extends from coast to coast.

In order to help move cars during its end of the quarter delivery rush, Tesla is bringing back free unlimited Supercharging to inventory cars and Model 3 vehicles until the end of the month, according to a source familiar with the matter.

Tesla has apparently made a lot of inventory cars unmatched to custom orders that the automaker is now trying to move by the end of the quarter.

Tesla was the first mainstream electric automaker to build stylish cars and the first electric automaker building powerful cars with driving range.

The model S at nearly 100K is one of the best selling Luxury cars in the world

Image result for tesla model s

CityFella

Electric Cars Are Evil (The Economics of Car Production)

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2019 Hyundai Kona Electric

2019 Hyundai Kona Electric

By: John Voelcker\Greencarreports.com

 

“Electric cars are disasters. They are evil.”

Not something you’d hear every day, certainly not from a powerful executive in the auto industry.

Yet those are the words of Ha Bu-young, head of the Hyundai motor union, both the largest and the most powerful union in South Korea.

Ha made the comment in an interview with the Reuters news service last week, published on Monday.

His concern is jobs, specifically the well-paid auto industry jobs that have lifted auto workers in the country to higher salaries and more generous benefits than those in most other industries.

General Motors blamed high labor costs and declining sales for its decision to close an assembly plant in the country, one of those it acquired 15 years ago when it bought the bankrupt Daewoo operation.

Hyundai Ulsan assembly plantHyundai Ulsan assembly plant

 

Ha estimated that electric cars could destroy 70 percent of the jobs at Hyundai under a worst-case scenario, though that figure is far higher than estimates from union bosses in other countries.

In late 2016, Michael Brecht, chief of the Daimler works council, said the number of workers required to build internal-combustion engines was “roughly tenfold” the number required for electric motors of similar output.

The UAW in the U.S. weighed in last October, after new Ford CEO Jim Hackett called for a 30-percent reduction in the “hours per unit” to assemble electric cars.

“We’ve been doing our due diligence to find out how much it (electrification) means to us,” said UAW Vice President Jimmy Settles, head of the union’s Ford department

He said the union and the automaker had agreed to work together to understand the answer to that question.

Another challenge for auto unions is the value represented by powertrain components versus the rest of the vehicle.

Today and likely well into the future, the single most expensive component of a battery-electric vehicle is its battery pack, which may be $6,000 to $9,000 for a 60-kilowatt-hour pack even once cells reach $100 per kilowatt-hour.

But the electrode film for those cells is made not in the automotive industry but by giant battery companies like Panasonic, LG Chem, and AESC.

2017 Hyundai Ioniq Electric2017 Hyundai Ioniq Electric

So even if cells and battery packs are assembled locally, as they are at the huge Nissan plant in Smyrna, Tennessee, the high-value electrode film comes in from somewhere else where auto-industry unions have no representation.

That is, parenthetically, why one-third or more of a 2018 Nissan Leaf is still deemed content originating outside North America—because the electrode film is shipping in from Japan.

Automation and outsourcing have steadily eroded the number of hours and workers required for a new car, even as cars grow in complexity, though the remaining employees work in far less grueling conditions than did their forebears.

But Ha may not be too far off-base in worrying that auto-union membership will shrink the ranks of the union. He just resorted to stronger language than other union bosses have to date.

Zzzzzz Your next-NEXT car will be Electric!

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Yes, your next NEXT car will be electric.   A report from research firm,Bloomberg New Energy Finance says by 2022,” the report says, the cost of ownership of battery electric vehicles will fall below that of an internal combustion engine vehicle.  Bloomberg projects by 2040 25% of the cars globally will be electric.

In 2016, nearly 160,000 electric vehicles was sold in the US . Last year Toyota sold nearly 390,000 Toyota Camry’s

Electric vehicles have fewer moving parts than an internal combustion vehicle.

The current challenge for electric car production is the availability of batteries which currently accounts for one third of the cost of the vehicle.

California Clears The Air

Automobiles are responsible for more than 40% of air pollution.

Air pollution exposure can trigger new cases of asthma, exacerbate (worsen) a previously-existing respiratory illness, and provoke development or progression of chronic illnesses including lung cancer, chronic obstructive pulmonary disease, and emphysema.

1.2 million die each year in India to diseases related to Air Pollution.  In China over 2 million people die annually.

In 1967, The State of California established the Air Resources Board(CARB).  One of the goals of CARB is maintaining air quality.  One of CARB’s responsibilities is to define vehicle emissions standards.  California is the only state permitted to issue emission standards.  Other states can choose to follow CARB standards   There was a time when Automakers  built two engines, one designed for California and the other for the other 49 states.

A few years ago CARB set a mandate for cars sold in the state. By 2025,15% of all cars sold in California must be zero polluting vehicles.  These would include, Electric, fuel cell vehicles powered by hydrogen.

Naturally there was resistance by auto manufacturers.  How committed was the state to implement this programs in 2006 there were a few charging stations and no hydrogen stations.

To build an electric vehicle from the ground up would cost the industry billions without a guarantee of acceptance by the public.

To meet this mandate, Auto manufactures modified existing vehicles adding an electric motor.  The problem is these cars had a very limited range(most were less than 100 miles) and to completely charge the cars took 8 hours or more.  The electric vehicles were based on a compact or subcompact platform, the average cost for these electric cars was $40,000 (before state and federal incentives) The manufactures lose money on each electric sold.   As for styling ,automakers seems to be dragging their feet, building something to meet the requirements.

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BMW I-3

The worlds best selling electric vehicle in the Nissan Leaf.   The Leaf was introduced in 2011 and more than 250,000 Leafs has been sold worldwide.   The current Leaf has a range of 107 miles.

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 Tesla Brings Sexy

Founded in 2003 The Palo Alto, California based Tesla started building electric vehicles in 2008.,  A two seat Roadster with a range of 200 miles.  It was the first production automobile to use the lithium-ion battery.

In 2012, Tesla introduced the model S.

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  Unlike the other automakers,the S was built from the ground up as an electric vehicle.  The batteries are larger and is a part of the cars structure. thus having a considerable longer range (265 to 351) than other electric vehicles .

The S was an instant hit.  With a price range from $80,000 to $100,000 its style attracted buyers who would normally purchase premium luxury cars from Mercedes Benz, BMW and Jaguar.

In 2015, Tesla introduced the model X, SUV.

Tesla has a network of high-powered Supercharges located across North America, Europe and Asia for Tesla vehicles.  Software within the vehicles navigation directs Tesla to charging stations.  The company also operates a Destination Charging program, under where shops, restaurants and other venues are offered fast chargers for their customers. As of  December 2016, Tesla has nearly 1000 stations globally, and 6,400 and charging locations. 

Image result for tesla supercharger station roseville

Tesla Supercharing Center, Rocklin, Ca

Earlier this year, Tesla briefly surpassed Ford and General Motors in market capitalization for a couple of months, making it the most valuable American automaker.

An Electric World?

The Government of Norway intends to ban internal combustion engine cars fueled by gasoline or diesel by 2025.

  Sweden, Japan and the Netherlands do not have an official mandate, however,their governments are  looking at 2025.  Implementation in Japan and the Netherlands would not be difficult. In the Netherlands 6% of the cars sold are electric.  In Japan 14%

China, home to some of the world’s most polluted cities has a mandate similar to California requiring manufacturers to sell a minimum of 8% “new energy vehicles” by next year.  Virtually every car company argued the time table was too aggressive. Even though sales of the low or zero emissions vehicles are higher than in most other countries, except Norway, they still account for less than 3% of the Chinese new car market.

There are now strict limits on the number of new vehicles that can be registered in major cities such as Beijing and Shanghai, but qualified NEV models are exempt, encouraging buyers to shift. With some of the world’s most polluted cities, some observers believe China could call for an outright ban on internal combustion technology in the not-too-distant future.                                                                                                                                                                                                                                       India wants all its cars to be battery powered by 2030 — and that means it not only wants to end the sale of internal combustion vehicles but convert or replace all other vehicles already on the road by the end of the next decade, a goal few see possible.

France and Germany, the ban is expected to be far more contentious. Auto manufacturers in both countries have condemned the moves by their respective governments to ban the internal combustion engine, saying that it would make the economy less competitive. European automakers have lagged behind Japanese and American ones in both hybrid and all-electric car technology, as conventional

European gasoline based and diesel cars already have high fuel economy. In response to so-called range anxiety, in which an electric car’s limited range may leave the driver stranded on the motorway, the Holland administration is expected to pair the proposed phaseout with national investment into charging stations as well as additional investment into TGV lines, to make it easier to travel long distances in France without a car.

Germany may also push to end sales of gas and diesel cars by 2030, but there is strong opposition, especially since half of its electricity comes from coal. Yet German automakers are launching major drives to electrify and that could help build momentum for a switch.

Volvo Leads the Way

In July, Volvo told the world ,all the models it introduces starting in 2019 will be either hybrids or powered solely by batteries.

Volvo headquartered in Sweden, is owned by Geely Automobile Holdings of China, which already produces battery-powered cars for the Chinese market. The decision by Volvo to focus on electric vehicles could ultimately give it and Geely a head start if, as many analysts expect, sales of battery powered cars begin to take off. China is already the largest market for electric vehicles.

Next!

With the American automakers focus on the very profitable SUV’s  will they have the billions necessary to build electric vehicles?  Currently every electric vehicle sold in America loses money.

Last year General Motors introduced the Chevy Bolt, the first car built from the ground up as an electric vehicle.   The car has been well received by the press.  Car and Driver says the Chevy Bolt ” is so cutting edge that it makes all other affordable electric vehicles seem irrelevant.”  At 238, it has more electric range than any car on the market with one exception, Tesla. It actually has a greater range than the highly anticipated Model 3

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Nissan just announced their next generation Leaf will have a range of 150 . Hiroto Saikawa CEO of Nissan says a Leaf with a range of 300 miles is possible within 3 years.

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Unlike Tesla, this car is affordable. its very quick and roomy AND it starts at $38,000 (before incentives) $40,000 less than the current Tesla model S.   If there is one problem with the car, its the styling.

2017 Chevrolet Bolt EV

 

It not ugly or Toyota Prius Quirky.   Tesla gave buyers a reason to trade in their BMW’s and Mercedes . One would expect more from the General.

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Waiting in the wings is Tesla’s people’s car the  Model”3”. Tesla began building the car in its Fremont, California plant in July.    Pricing for the “3” begins at $35,000(before incentives), if its the “3′ you want, you’ll have to get in a very long line as 450,000 people have placed deposits on the “3”.  Based on Tesla’s track record the 400 thousandant should receive his “3” by 2020   Tesla has an Apple like, cult following and those people are willing to wait.

Game Changer?

With all the luxury manufacturers taking aim at Tesla. Jaguar, a company known for its stately vehicles, is introducing a compact luxury electric SUV called the I-Pace( Est arrival is first quarter 2018).  Its engineering comes from Tesla’s play book.  The batteries anchor the car with two electric motors, one at each axle.  Jaguar says the range of the I-pace is estimated at 220 miles.

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The SUV, will be built in Austria and the platform will be used on other Jaguars as the company says half of its vehicles  will be electric by 2025  The cost for I-Pace begins a tick under $100.000.

If $100,000 seems hefty.  Tesla sells to variations of the Model S for $100,000 and the Model X SUV sells for over $100,000.    If Jaguar is remotely successful, expect the automakers to quickly follow suit.

Perhaps with the assistance of Tesla’   Tesla build a Gigafactory, outside of Reno Nevada.  Panasonic is currently building car batteries in a section of the uncompleted building and Tesla will eventually build cars there.

  Cummins, known for diesel trucks recently introduced its first application for inthe first electric commercial truck

The truck has a range of 100 miles and is capable of hauling a 22-ton trailer.  Cummins electric power train is being targeted at urban delivery vehicles (like a beer truck or food delivery truck) as well as for short haul trips in and around ports and other terminals. It can be recharged in about an hour at a 140 kWh charging station, and Cummins’ goal is to get that down to 20 minutes by 2020, reducing down time for its business customers. Production begins in 2019.

There are challenges ahead for the industry.  There isn’t a standard for charging. In Most charging stations uses Level 2 J1772 charger.these will work on all electric cars. Those charging stations are fairly slow, often requiring hours to fully charge your vehicle.  If you own a Tesla you can drive from coast to coast due to their network of superchargers where owners can charge their cars in as little as 30 minutes. Those charger are exclusive to Tesla vehicles.

The other challenge is much greater.  Is  our national electrical (grid) prepared for an  increase of electric usage?  As a result of individual scharging their vehicles at home?

Your next-next new car is likely to be an electric car.  With ranges considerable more than the cars of today.

Like your cell phone, charge it and drive.

CityFella

Volvo reveals plans to go all electric… and it’s going to happen sooner than you think

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Volvo reveals plans to go all electric... and it's going to happen sooner than you think

Volvo chief executive Håkan Samuelsson. Photo: Janerik Henriksson/TT

All new Volvo cars will be equipped with an electric motor from 2019, making it the first of the world’s traditional car makers to pull the plug on cars powered only by a combustion engine.

“This is about the customer,” said Volvo Cars president and chief executive Håkan Samuelsson in a statement. “People increasingly demand electrified cars, and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.”

Volvo said it would launch five fully electric cars between 2019 and 2021, as well as petrol and diesel plug-in hybrids and so-called “mild-hybrid cars”, cars with a small petrol engine and large battery.

“This announcement marks the end of the solely combustion engine-powered car,” said Samuelsson. “Volvo Cars has stated that it plans to have sold a total of one million electrified cars by 2025. When we said it we meant it. This is how we are going to do it.”

Volvo Car Group is owned by Chinese Geely Holding. It is headquartered in Torslanda, Gothenburg, and has a factory there as well as in Ghent, Belgium, and Chengdu, China.

European car makers have been racing to develop electric vehicles.

German car giant Volkswagen is championing electric models in a bid to clean its tarnished reputation, after it admitted in September to installing emissions cheating software in 11 million diesel-powered cars worldwide.

Higher-end manufacturers like BMW and Daimler, which owns Mercedes, are also jostling for a share of the electric vehicle market, but face a challenge from newcomers like Tesla, which has had a head start in autonomous driving as well as electric power.\

The Local

Why you might own at Tesla or and Electric car in the Next Five years!

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By CityFella

A few years ago the State of California approved  rules requiring 15 percent of cars sold in California to be all-electric, plug-in hybrid electric or hydrogen vehicles.   This means in your an automaker 15%  of your fleet must be one of above. Compliance begins with model year 2018. Full compliance is expected by 2025.

A few years ago these cars began appearing on dealers lots buried in the back.  With the exception of Nissan , few marketing dollars has been spent for all electrics and plug-in vehicles.  To make matters worse, prospective buyers often encounter uninformed salespeople.

High Anxiety

For many the downside of owning an all electric car is range.   Most electric vehicles have a very short driving range including the best selling Nissan Leaf has a range under 80 miles.  In Sacramento, that means a shopping tour of the Rocklin area with a stop at an “In and Out’ drive through” could be a little nerve wrecking.

The vehicle with the longest range is the Tesla, the Model S with its basic battery has a range of 208 miles* and 265 miles with the larger battery.    This makes the Tesla the car of choice for commuters.

According to Car Stations.com. there are nearly 130 charging stations in the Sacramento region.   However, it isn’t a one size fits all.  Manufacturers offers an app to direct you to the nearest charging station.   Unlike, gas stations most charging stations are free.  If they are located in parking garages, you pay for parking only.

Electric cars were popular in the early 1900’s  

Electric cars aren’t new, they were popular in the big cities because they were quiet, easy to drive and didn’t pollute.    hey were perfect for short trips around the city, and poor road conditions outside cities meant few cars of any type could venture farther. As more people gained access to electricity in the 1910s, it became easier to charge electric cars, adding to their popularity with all walks of life.

From the History of Electric cars

Many innovators at the time took note of the electric vehicle’s high demand, exploring ways to improve the technology. For example, Ferdinand Porsche, founder of the sports car company by the same name, developed an electric car called the P1 in 1898. Around the same time, he created the world’s first hybrid electric car — a vehicle that is powered by electricity and a gas engine. Thomas Edison, one of the world’s most prolific inventors, thought electric vehicles were the superior technology and worked to build a better electric vehicle battery. Even Henry Ford, who was friends with Edison, partnered with Edison to explore options for a low-cost electric car in 1914, according to Wired.  

Many believed the Model-T killed the electric car.  The massed produced car at $650 was one third the cost of an electric car.  Cheap gas and better roads buried it.   By 1935, nearly all electric cars disappeared.

In the 90’s, General Motors developed an electric car from the ground up.  Because of high production cost GM didn’t believe the EV1 was commercially viable and despite its cult following. GM discontinued the car in 2001 and  repossessed the leased cars and destroyed them.  The remaining vehicles can be found in museums.

Tesla A Player?

With the California mandate, automobile manufactures simply converted combustion engines to electric.  Most manufacturers sell those vehicles at a loss.

Tesla has been around for twelve years now.  Its first car, the Roadster was introduced in 2008.

According the Wikipedia it sold 25oo units.  This car was designed from the ground up to be an electric vehicle. The Roadster cost $102,000, the car was discontinued in 2012.  It had a range of 200 miles.

In 2012, Model S was introduced at a price of $59,000 and depending of the size of the battery offered a range from 160, to 265 miles.   The first year Tesla sold over 22,000 cars.  Last year nearly 32,000 cars sold globally. Tesla builds cars in Fremont, California and in The Netherlands.  This year the Model S is available in Shanghai, China.

Model S has made an impact on the large manufacturers as the Model S has taken sales from the like of Mercedes Benz, BMW, and other luxury brands.

Read

https://sacratomatovillepost.com/2014/12/16/how-audi-bmw-mercedes-benz-and-porsche-plan-to-shock-tesla/

Last June, CEO  Elon Musk  wrote a blog stating. that the company would not initiate lawsuits against anyone who wishes to use their technology in good faith.   To build an all electric car would cost the industry billions.

In the blog post, Elon Musk stated that he was disappointed with the rate at which other car companies were adopting the electric vehicle technology. As the global production of vehicles approaches 100 million per year, electric vehicles only form less than 1% of that number.  Tesla moved into the supplier business in order to nudge other companies into adopting the technology but the company?s efforts so far have not paid off. By granting access to its technology, the company is hoping that more vehicle manufacturers will adopt the technology, thereby growing the market for EV?s. If the move is successful, it could lead to advantageous network effects for the company.

Why you might buy a Tesla or Electric Car in 5 years

In 2000, the Toyota Prius went on sale in the United States at a cost of 22,000.  From 2000 t0 2014 over 1.5 million cars were sold.  Today, Toyota has over 67% of  world the hybrid sales.   With Ford being a distant second.

In 2017, Tesla Gigafactory opens in Reno,Nevada.

In the last quarter of 2017, Tesla plans to build Model 3.

At a projected price of $35,000 and a range of 200 miles this will be the game changer.  The Model 3 will be affordable to more consumers.

In 2013, Edmonds.com measured the cost of owning an Model S vs BMW 7 Series

Average cost of electricity in California: 16 cents per kilowatthour (kWh).

Average cost of premium gas in California in 2013: $4.09

Miles driven: 23,000

Fuel efficiency of the BMW 7 Series: 19 mpg

Fuel efficiency for Tesla: 3 miles/kilowatthour

Cost of electricity to drive the Tesla 23,000 miles: $1,226

Cost of premium gas to drive BMW 7 Series 23,000 miles: $4,951

Money saved on fuel by driving Tesla: $3,724

Obviously, there are many factors that could change the result of these calculations. But most of the variables play in favor of the Tesla. For example, there are many free public charging stations where there is no cost for electricity. The electricity from Tesla’s superchargers is also free. And many people who get a Tesla become enraptured with solar power and have panels installed on their houses. This drops the cost of electricity well below the 16-cent average. Additionally, some utilities reduce rates for charging EVs at night. Southern California Edison, for example, charges only 11 cents kWh for charging after midnight.

Also keep in mind that these figures are just for 23,000 miles. Over 100,000 miles the savings in fuel costs is $16,192.

Tesla has Charging stations all over the country. Today your can drive from San Diego to Vancouver Canada. and from San Diego to New York City using Tesla’s free charging stations along the way.

BMW is building its network of stations.  Of course it would make sense for the industry to adopt Tesla’s charging system, but today its Tesla vs the world.

Map of Tesla charging stations in 2015.

Is this an endorsement of Tesla?

No, its an endorsement of alternative energy. We need alternative to the combustion engine. Despite the improvements it is still largely responsible for air pollution. (Its the number one source in Sacramento) Its an endorsement of cleaner cars.    Before the success of Toyota’s Hybrid System if you wanted an fuel efficient car, you were limited to a small, under powered subcompact car.

Today, you can find hybrid systems of Lincoln’s, BMW and Mercedes Benz.   Today there are 8 passenger Suv’s achieving 27 mpg in the city.  Today the EPA rates the  Lincoln MKZ Hybrid  city mileage at 41 miles per gallon.  A figure unimaginable 20 years ago.

Later this year Toyota will sell the world first hydrogen car the Mirai.

Today, we need Tesla to succeed..