Tesla's Don't Cost Too Much
Tesla vehicles start at about $46,500 with the Model 3 RWD. It's possible someone could invent a better car, but so far it hasn't happened. Customers are still paying what Tesla is charging for their vehicles and this means the price is right.
EV's are still somewhat new to the auto industry and consumers are still wondering about buying EV's, but that is changing quickly with Tesla's vehicles and warranty. Consumers will buy the lowest cost alternatives.
When it comes to legacy auto makers and their EV's, there isn't much difference between their ICE cars and EV cars. Even the Model 3 RWD has a very responsive acceleration when you press the accelerator hard. Other EV makers just don't have that responsiveness.
Are the legacy auto makers offering anything different with their EV's then? They do allow for charging at home, and not using gas, which is good for the environment. Legacy auto makers can't offer as much range and performance as Tesla either. Is there an advantage to a legacy auto makers EV?
Lower cost of fuel, charging at home, and being good to the environment are the only things I can think of.
Will New Car Buyers Keep Buying EV's?
Tesla has their super charging network, which eases any anxiety about owning an EV. There are super chargers near me where I live because I cannot charge at home yet in my condo.
Legacy auto makers aren't making money on their EV's yet. In fact, it took Tesla quite a long time to start earning a profit on their vehicles.
The one thing that I think will save legacy auto maker EV's is the tax credit, which will help people save up to $12,000 on the vehicles. Consumers will care most about the sticker price and then what the fuel savings over time will be.
When you compare a Tesla Model 3 RWD with a BMW 430i Series Gran Coupe ICE car, you get the following:
430i Series Gran Coupe:
0-60: 5.8 seconds
Range: 436 miles
Top Speed: 130 mph
Tesla Model 3 RWD:
0-60: 5.8 seconds
Range: 267-272 miles
Top Speed: 140 mph
The Model 3 RWD has LFP cells. The BMW is an ICE car with more range. You have to get gas still which is more expensive. The specs of these cars are pretty similar minus the range. That is the one area the BMW wins out over the Tesla. The BMW also has a bunch of add-ons, including driving assist, which takes the price at parity with the Model 3.
But you can still get quite a lot of range in a Model 3 if you just drive carefully. I can get over 300 miles of range on my Model 3 RWD when I drive carefully and take advantage of regenerative braking.
I think over time, consumers will keep buying EV's as they continue to improve, get more range, and more and more chargers are built across the country. There needs to be chargers everywhere just like there are gas stations. Tesla will need to build another factory in North America to keep up with the upcoming demand. Legacy auto makers are in trouble and their cars will never drive themselves.
Do you think Tesla vehicles are too expensive. Will you be ordering a Tesla vehicle?
For more information, please see this video by Tesla Economist:
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.