Are electric cars ready to go mainstream?
 

Back in January, the Tesla Design Studio in Hawthorne, California, was paid a visit in order to interview the firm's founder and chief executive, Elon Musk.

According to the reporter, the design team were welcoming, but nervous about what was filmed - and in the background, as the interview took place, there were a number of cars draped in black sheets.

One key reason for the secrecy was that Tesla was just a couple of months away from unveiling the product on which its entire future now depends. Perhaps the Model 3 was under one of those sheets.

The importance of a car that would reach a wider public was underlined in the interview.

"Unless there's an affordable car we will only have a small impact on the world," Mr Musk said.

"We need to make a car that most people can afford in order to have a substantial impact. If we could have made an affordable car straight off the bat we definitely would have, it's just that it takes time to refine the technology."

But building a car that most people can afford is not just about fulfilling Mr Musk's mission to create a more sustainable form of transport.

The Model S and Model X have won rave reviews and are credited with transforming attitudes in the motor industry - and amongst drivers - to electric vehicles.

But all the while, Tesla has stacked up huge losses. While its sales nearly doubled in 2015, its losses nearly tripled to $889m (£618m).

They may continue to rise as the company gears up for the Model 3, which involves building one of the world's biggest buildings, the Gigafactory, and ramping up production tenfold.

But what Tesla and its investors are betting on is that the car will sell in such numbers that the company can drive forward into the sunlit uplands, where revenues start leaping ahead of costs.

The eager customers who have been queuing up outside Tesla showrooms to pre-order the car are a good sign, though early excitement may fade if the company is as slow in delivering the Model 3 as it has been with previous models.

The other big question is whether there really is a mass market for electric cars, and if so whether Tesla is the company that will benefit.

Two issues are holding back mass adoption of electric driving: cost and charging infrastructure.

And they are linked. Wealthy owners of the current Tesla models are very likely to have a garage or drive where they can plug in to charge overnight.

The motor industry analyst Jay Nagley has said the Model 3 could be a tipping point for electric vehicles, and that Tesla had done the whole industry a favour.

"They've massively improved the image and made people feel they are the future," said the managing director of the Redspy consultancy.

But he thinks progress will now be steady rather than spectacular.

"The cost of batteries is coming down and the range is going up, but battery management systems - the technology around them - won't get much cheaper," he noted.

"And charging in the big cities is still a pain."

Others are also targeting the electric vehicle mass market.

In the US, the Chevrolet Bolt - about the same price as Tesla's new car - is already in production and should be delivered by the end of this year, 12 months before the Model 3.

In the UK, we have a quarter of Europe's electric vehicle production and a fifth of all sales.

The production is mostly the Nissan Leaf, made in Sunderland - though at around £25,000 for a car with a range of around 100 miles (161km) it may begin to look expensive when the Tesla arrives.

What Tesla has achieved is already remarkable, forcing the likes of BMW, Porsche and GM to move their electric vehicle efforts from sideshows into the mainstream.

But now we will find out whether the pioneer can end up as the dominant carmaker of the electric age - or merely a footnote in its history.

Find out more about our featured Business of the Week - The Olive Tree.

 

HELP Euro Weekly News to HELP promote YOUR business.

 

 

T: 952 561 245

This email address is being protected from spambots. You need JavaScript enabled to view it.
Facebook
Twitter
EWN Gets it!
  This email address is being protected from spambots. You need JavaScript enabled to view it.
 

 

Do you get it?

EWNGETSIT.com is the newest and brightest professional online business directory for any business based in Spain. Not only does this Spanish business directory attract clients to you, it is backed up by the power of the Euro Weekly News media group. 

EuroWeeklyNews, Spain´s biggest English newspaper, with six newspapers read by half a million people every week; together with the EuroWeeklyNews website packed full of Spanish news, point directly to this site, guaranteeing plenty of online interest for our clients.

We offer flexibility and can tailor listings to individual business needs. You may enter your business into several categories to increase your business opportunities.

We offer ongoing support ensuring you are always in control of the information in the listings for an annual fixed fee. Professional business listing service by EWN Group.

To make sure your business is listed into the best business directory Spain, and guarantee top search engine results, please contact us for more information.

 

TEL:+34 951 38 61 61

EMAIL: directory@ewngetsit.com

ADDRESS: Avenida Ramon y Cajal 54, Edificio River Playa, Local 2, 29640 Fuengirola, Malaga, Spain