A process that started two years ago finally came true this September; I took ownership of a Tesla Model 3. I am not a “Car Guy” by any means, I just don’t get excited about cars. I simply view them as a means to get from point A to point B. Ideally, I would not even own a car. However, as I sit in my new Tesla with all of its cutting edge electronics and its sophisticated simplicity, I can see the future, and the combustion engine is in the rear-view mirror.
We got a glimpse of the future in 2016, when our firm was hired to market the sale of an electric vehicle charging technology. While soliciting interest from international companies, we began to see the transformation that was taking place in the market. Companies were spending billions of dollars in an attempt to win the electric vehicle “arms race”. What was particularly noteworthy was that they were not all traditional automotive companies. Technology and engineering companies like Google, Uber, and even Amazon had all recognized the growing market opportunity and were joining the parade.
There are an expanding number of reasons why I think the electric car will beat the combustion engine in the long run – here are a few reasons that today’s drivers should be considering.
THE ADVANTAGES OUTWEIGH A COMBUSTION ENGINE IN SO MANY WAYS
As the saying goes, “the last best experience that anyone has anywhere, becomes the minimum expectation for the experience they want everywhere.” In only one week, I am already a convert. I could never return to the days where I needed a key to unlock my car, or had to take it into the garage just to see what might be wrong with it. There are so many more options with an electric vehicle that are simply not possible with the combustion engine. Electric vehicles are evolving into safe, driverless cars because they can be easily programmed and updated over the air. In the near future, we are poised to see electric and autonomous ride hailing services, such as the one Volkswagen is launching in 2019, which will have the potential to be more cost effective than car ownership.
But for now, I am most excited about being able to warm up my car from the kitchen while it sits inside my garage at 30 below.
EV’S ARE NOT THAT EXPENSIVE! EVEN WITHOUT THE SUBSIDIES
Subsidies aside, electric vehicles are comparable in price to other vehicles on the market within the same class. For example, the Tesla Model 3 premium package is $64,000 before tax and fees, which is comparable to a BMW M3 which starts at $77,000. The Tesla does 0-60 in 3.5 seconds, 0.4 seconds faster than the M3 and has all of the creature comforts of its German rival.
To add even more fuel (or wattage) to the race for electric vehicle supremacy, on September 12th, NYSE listed Chinese electric car maker Nio declared that their cars are faster and cheaper than anything in Tesla’s line up.
But electric vehicles need not be reserved for luxury vehicle aficionados. The Nissan Leaf for example is $35,000. Not bad for a car you’ll never need to fuel up.
“THE CAT IS ALREADY OUT OF THE BAG”, THE AUTOMOTIVE INDUSTRY IS ALL IN.
All of the existing automotive heavyweights have already or will introduce an electric vehicle in the coming years. It’s a marketing nightmare for companies like Porsche, Aston Martin, BMW, Audi, and Mercedes to have a company like Tesla produce cars that are faster, safer, cooler and cheaper to operate than anything within their exiting line-ups. As such, all of these players have recently introduced electric vehicle sport cars in order to stay relevant and put pressure on Tesla’s current market share growth.
Furthermore, companies such as Volkswagen and BMW are in the process of launching an all-electric car-sharing service.
BILLIONS ARE BEING SPENT ON THE DEVELOPMENT OF THE ELECTRIC VEHICLE
Electric Vehicle Activity Worldwide
Source: Pitchbook Inc.
It is certainly not clear who will win the electric vehicle race, however, I am sure of one thing; the electric vehicle is here to stay!
Visualizing the Rise of the Electric Vehicle
Managing Director, WelchGroup Consulting