Has Detroit Already Lost The EV Race? One Tesla Investor Thinks So
Though most analysts would agree that EVs are still in their earliest stages, the big players have already emerged, and it isn’t any Detroit-based automaker. This has led one Tesla Motors investor to proclaim that Detroit has already lost the race to build electric cars. His advice to GM, Chrysler, and Ford? “Create a flying car.” That’s an actual quote.
Venture capitalist Tim Draper, who comes off as a know-it-all billionaire (most likely because that’s exactly what he is) is a big-time investor in Tesla Motors. Even though Tesla has yet to turn a single dollar of profit though, Draper is ready to proclaim that Elon Musk’s electric automaker has already won the electric car market, and Detroit should give up and build something else.
Like a flying car. I’m all for that, though the idea is still more pretty far out there.
Make no mistake, I am a fan of Tesla Motors, and Draper is right in a sense. Tesla has created more positive buzz for the Model S sedan than any pure electric vehicle coming out of Detroit. That could be because only Ford currently offers a pure electric vehicle, the Focus Electric, a car with sales so low that you can’t even find them on dealerships; it has to be special-ordered.
The problem with Draper’s comments is that in the real world, electric cars as a whole just don’t register with consumers. At least not now. The only reason Tesla is finding any success is because it has eschewed building an affordable, mainstream EV, and instead targeted wealthy luxury car buyers. That can, and is working for Tesla.
But Tesla will have a much harder time breaking into the mainstream market than a company the size of Ford or GM. The reason Detroit hasn’t gone all-in with electric cars is because these cars don’t meet the criteria for consumer demands.
Regardless of whether or not most people don’t need to drive beyond the range of most EVs these days, asking someone to shell out $30,000+ for a car with as many limitations as an EV. Give it a few more years in the incubator, and things might be different. But at the first least, Draper, is probably taking a premature victory lap.
Don’t count Detroit out yet.
Source: Detroit Free Press
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About the Author
Christopher DeMorro A writer and gearhead who loves all things automotive, from hybrids to HEMIs, Chris can be found wrenching or writing- or esle, he's running, because he's one of those crazy people who gets enjoyment from running insane distances.
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