Why People Aren’t Buying Electrics Not Named Tesla
Tesla, GM, Ford, NIO, Geely, Huawei, BYD, Aito, Cruise, Europe EV Demand
Why People Aren’t Buying Electrics Not Named Tesla
We have righteous heavyweights, puffing themselves up like they are really something. And running hard on opposing narratives.
In this corner, zealous missionaries proclaiming that EVs are irresistible and inevitable. Everyone needs to buy one to save planet earth.
In that corner, the anti-EV crusaders shaking their fists at outrageous, wasteful federal subsidies and “coal-burning” cars.
What if they are both wrong?
What if the real reason Tesla dominates the market is not because of battery-powered propulsion but because the vehicle is the most innovative creation on four wheels in the past hundred years?
I have been driving Teslas since 2015. I have talked with hundreds of other Tesla owners – at kids baseball or soccer games, school gatherings and Tesla Supercharger stations. When I ask them why they buy their Tesla, very, very few say because it is electric. Or because of zero emissions.
Instead they talk about this thing called over-the-air updates which Tesla does better than everyone else. Or they talk about the supremely intuitive Tesla App. Or they talk about how Tesla makes charging fast, reliable and convenient. Or how Tesla is on the leading edge of autonomous drive capabilities.
They smile about the ridiculously funny emissions testing modes. You know, like the Falcon Heavy or Short Shorts Ripper.
Seldom did I encounter a person who gave saving the environment as his or her reason for purchasing a Tesla. “I bought my Teslas because of the super cool features. Even if [my Teslas] were running on coal, I would still buy them,” says Dan Gittleman, technology expert and former senior executive at Lear. “It’s all about the innovation.”
Tesla continues to dominate sales in the United States, accounting for almost 2 of every 3 EVs delivered to American consumers this year.
GM, Ford and Volkswagen threw their best punches and are struggling to move their EVs. Now, they are in retreat.
Across the country, EVs are piling up on dealership lots. Thousands of dealers have written to Congress with an urgent plea to pull back. The problem is not that the cars are electric. It’s the glaring void of compelling new technology, innovation, fun, unexpected conveniences – the je ne sais quoi.
Elon Musk recently spoke about the ultimate feature - a car that drives itself. A breakthrough in autonomy, he said, is so important that it is “really the difference between Tesla being worth a lot of money or worth basically zero.”
Straight talk to the leaders at GM, Ford, Volkswagen, Honda and Mercedes: A battery is a building block. But if your goal is to win, you must offer something exceptional. You must deliver an incredible end-to-end experience. Be compelling.
Detroit, Stuttgart, Seoul, Nagoya and Paris: Where is your imagination?
Future Cars & Markets
Electrics
EV Penetration: Mostly West & Rich. The top five states for EV penetration in America are concentrated in the Western states. Wondering where Michigan stands? It’s below Ohio. Link
Huawei Aito M7. Arguably China’s most powerful company, Huawei, says it has booked more than 100,000 orders for the revamped Aito M7. The three-row electric SUV starts at $34,000. Link
Batteries / Supply Chains
NIO & Geely Battery Swaps. Geely and NIO entered into an important alliance on battery swapping stations this week. Will swapping gain traction outside of China? “Battery swapping could ease the strain on power grids at peak times when drivers recharge, but [swapping] would only become feasible if batteries become more standardized.” Link
Lithium Dive. The spot price for lithium is down a stunning 75% so far in 2023. Experts says that supply is simply running too far ahead of demand. Last year, lithium prices jumped 40% because supply could not catch up with demand. For investors, timing continues to be everything. Link
Advanced Technologies
GM’s Burning Cruise. On December 13, 2022 I submitted my 2023 prediction to The Verge as follows: “GM will surrender on Cruise, citing astronomical costs and this uncertain path to profitability.” Cruise lost $1.9 billion through September, CEO Kyle Vogt has resigned and the company has now suspended its operations in the United States where it operates its driverless vehicles in various cities. Lucky guess. Link
New Money / Numbers / Rules
US Dealers Drowning in EVs. “The supply of unsold EVs is surging,” 3,800 dealers from 50 states told Congress in a letter this week. “This attempted electric vehicle mandate is unrealistic.” Link
EVs Less Welcome Here. America’s 10 lowest EV penetration states: Michigan, Iowa, Kansas, Arkansas, Mississippi, Wyoming, Louisiana, South Dakota, West Virginia, North Dakota.
Europe EV Outlook. EVs will account for 20% of the European car market in 2024, up from 14.5% in 2023. Link
BYD Seal – Car of the Year Shortlist. The Seal becomes the first Chinese model to be named as a candidate for Europe’s most prestigious award. It will also go on sale in Mexico starting in 2024. Link
Listen to this masterclass on the landmines to avoid when doing business in China. “If you go to China, the first thing to do is understand how the place really works.”
One Bed, Two Dreams: Why Western Companies Fail in China
Ken Wilcox, former Chairman and CEO, Silicon Valley Bank
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China is coming up fast in terms of innovation, especially Geely and BYD.
Super commentary re ev uptake vs innovation.
Your question to Detroit, Souel et al about "where is your imagination ?" made me wonder...... where is China in this list?
Thanks!