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If Tesla was making 10 times as many cars, I doubt this would be a serious issue. Much of it is a matter of scale. Tesla is doing something nearly impossible.
by Robotbeat 8y ago
If Tesla was making 10 times as many cars, I doubt this would be a serious issue. Much of it is a matter of scale.
Tesla is doing something nearly impossible. I'm not surprised it's having difficulties here. It has always been the case that failure is a serious possibility.
Not only is starting a car company hard, but an electric car company is especially hard. Margins are so thin in carmaking in general, that you depend on scale to make things like maintenance doable.
With gas prices low and EV credits disappearing, the natural outcome of all these pressures when fossil fuels are not paying for their externalities is that the electric car maker will fail.
And unfortunately, it's not like other electric car makers in the US are doing any better. EVs tend to be a loss-leader (halo cars or compliance cars) for traditional manufacturers. GM ended their Volt production. And my experience on Volt forums is that it's incredibly hard to get dealers to service electric cars because they also don't have qualified staff. And that's for vehicles that can take advantage of the GM ecosystem for things that aren't powertrain related. I own a Volt and a Leaf. The Leaf also has had many issues with powertrain maintenance (more than Tesla) in spite of using a very similar vehicle platform to the traditional vehicles Nissan produces.
I look at those saying we have to pull out all stops to address 1.5 degrees C of climate warming, and then I look at our utter failure to pass meaningful federal measures to support electrification of transport, even letting our previous ones expire while China takes enormous strides in standing up their electric vehicle industry... It's as if we literally don't care. We're just going to let the American electric car industry fail. In fact, several states are passing and have passed extra taxes on electric vehicles in order to "compensate" for lost gas tax revenue (although basically universally over-estimating how many miles EV owners drive per year, thus actually taxing them HIGHER than gas drivers).
...and considering all that (Losing a $7500 credit and gas prices now about $6000 less over the life of the car compared to a few years ago), I actually think Tesla is doing fairly well. They're going to have to quickly expand beyond America, though, because we are failing them.
EDIT: Rivian is in a similar boat. Their products look amazing, but they're starting from scratch in a low-margin business at a time of low gas prices. Hopefully both Rivian and Tesla can make it. But without the support from the federal government like firms in Europe and especially China, it's quite possible both will fail.
- madengr 8y agoThey are trying to implement that tax here in KS. To screw me even further, the property tax is based on a average depreciation for all vehicles. Thus the used 2015 Leaf that I bought for $8,500 was taxed at $23k for a two year old car. I filed a “payment in protest”, but they don’t accept them for vehicle tax.
- koenigdavidmj 8y agoJust moved to KS a couple months ago and paid more than in Washington (by a couple hundred bucks!) for registering a car. And that’s the part of Washington that had a special taxing district for the light rail. Not sure what we’re actually paying for.
- kevin_thibedeau 8y ago> Not sure what we’re actually paying for. Less government.
- threeseed 8y agoa) EV cars are doing just fine in the rest of the world and definitely aren't being used purely for Halo/Compliance reasons: https://www.carmagazine.co.uk/electric/best-electric-cars-and-evs/ https://www.carmagazine.co.uk/electric/best-electric-cars-an... b) Rivian has the backing of Ford who will be using their platform for future pickup models. Don't lump them in with Tesla who truly started from scratch.
- Robotbeat 8y agoa) High gas prices in Europe for environmental reasons are exactly the kind of support that electric vehicles need. UK gas prices are $5.83/gallon compared to about $2.60 (at the time). Over the 6000 gallons a car may burn through, that works out to almost $20,000 difference (far greater than the $7500 EV credit now expiring). You're making my point for me. (Halo/compliance was only in the US.) https://www.statista.com/statistics/221368/gas-prices-around-the-world/ https://www.statista.com/statistics/221368/gas-prices-around... b) Very similar to Tesla being invested in by Toyota and Daimler in the beginning, with Tesla then providing powertrains for the Rav4 EV and the Smart EV and Mercedes B-Class. Rivian IS developing their vehicles from scratch like Tesla did with Model S, and that's why Rivian's vehicles will be fantastic (if they can execute, which I suspect they can). However, Tesla really ought to partner with more carmakers and provide their excellent powertrains like they once did. Both Tesla and Daimler are apparently open to it and are in talks: https://www.cnbc.com/2019/02/07/daimler-ceo-tesla-mercedes-talking-about-working-together-again.html https://www.cnbc.com/2019/02/07/daimler-ceo-tesla-mercedes-t...