Wednesday, February 10, 2016

Car wars

(cont'd)

Maybe the biggest motivation to buy an electric vehicle is the assumption that it will leave less of a carbon footprint, pollute the air less than a conventional car. But the video in yesterday's post casts doubt on that hope.

So another motivation might be that EV's are less costly to run. But it doesn't help that gas is now about $1.50 per gallon. It just gets harder to justify buying a pricier car . . like Tesla, for example. The Model S still costs upward of $70,000.


Multiple factors coming together seem to be driving down Tesla's stock (although factory output still lags demand).

A new mass market Tesla (Model 3) is scheduled to be available in 2017, at about $35,000 before incentives. The lower price will mean a much bigger market for Tesla, but they'll have to share that market niche - because General Motors is coming out with their version of the mass market EV at a slightly lower cost and months before Tesla.

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