Tesla’s $25,000 Electric Car Means Game Over For Gas And Oil

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Tesla’s Battery Day took place on September 22, 2020, where stockholders expected to make a significant decision regarding electric vehicles (EVs). However, Tesla’s shares fell by almost 10%, most likely because the “million-kilometer battery” was not part of this year’s presentation. Instead, stockholders received a number of gradual improvements based on technology, but they were difficult to understand and not very well explained. What will be remembered for this year’s Tesla’s Battery Day is the end of the presentation, where the end of the traditional automotive industry based on fossil fuel propulsion is actually announced.

That “honor” for the announcement went to Elon Musk, consisting of a single slide and a few sentences, and confirming that battery costs have been reduced by 56%, enabling the production of EVs for $ 25,000 with fully autonomous capability.

Musk canceled the Y model version, stating that the EPA range below 250 miles is too low and that 300 miles from the EPA range is the “new norm”. Although not specified, but it can be assumed that this $ 25,000 car will have at least 300 miles of EPA range. Also, it can be safely argued that this car will be fast as it can reach 0-60 mph in less than 6 seconds.

The price of $ 25,000 from the first does not sound so impressive, because in the US you can buy an internal combustion engine, and under $ 20,000, but for now the US market is not what the car will be aimed at. The Tesla Model 3, which is known in the US, starts at just under $ 40,000 and is most often compared to mid-size luxury cars (e.g. the BMW 3 Series).

In contrast, the new $ 25,000 car, dubbed the Model 2, is tied to one European icon, the hugely popular VW Golf, which represents quality at an affordable price.

“Model 2,” is actually still a theory, but Musk talking about new improvements to the batteries it can deliver predicts a period of 1.5-3 years. Signs for anyone planning to buy a car in about 3 years, they can choose a German fossil-fuel car or a semi-premier EV with a range of over 300 kilometers and much faster performance. This variant of EV will then become much, much cheaper to drive because even in the US, electric mileage is significantly cheaper than that on fossil fuels.

In the UK, things are a little different, because the price of petrol and diesel is astronomical. Tesla EVs are sold in the UK at about the same price in pounds as in dollars (e.g. the Model 3 in the UK is around £ 40,000). AND

When these EV prices are reached, there will no longer be an argument that people “can’t buy EVs because it’s too expensive” because they will be the same prices. The only problem will be those 300 miles in one go, but even today it is rare for anyone to walk more miles in one day. It is also assumed that in three years from now, charging will be more and more present. In that case, when people can buy an EV with a range of over 300 kilometers and which is faster and equipped with better technology than the VW Golf internal combustion engine, and is much cheaper to drive, the only obstacle that can deter you from getting it are unfounded anti-electric prejudices.

Types of Electric Vehicles

  1. a) Battery Electric Vehicles (BEV)

The BEVs are fully-electric vehicles with rechargeable batteries and without a gasoline engine

BEV Examples (can be charged on DC Level 3):

  • Tesla Model 3
  • BMW i3
  • Chevy Bolt
  • Chevy Spark
  • Nissan LEAF
  • Ford Focus Electric
  • Hyundai Ioniq
  • Karma Revera
  • Kia Soul
  • Mitsubishi i-MiEV
  • Tesla Model S
  • Tesla X
  • Tesla Y
  • Toyota Rav4
  • Volkswagen e-Golf
  1. b) Plug-in Hybrid Electric Vehicle (PHEV)

Plug-in Hybrid Electric Vehicles can recharge the battery through both regenerative braking and “plugging in” to an external source of electrical power.

PHEV Examples

  • Chevy Volt
  • Chrysler Pacifica
  • Ford C-Max Energi
  • Ford Fusion Energi
  • Mercedes C350e
  • Mercedes S550e
  • Mercedes GLE550e
  • Mini Cooper SE Countryman
  • Audi A3 E-Tron
  • BMW 330e
  • BMW i8
  • BMW X5 xdrive40e
  • Fiat 500e
  • Hyundai Sonata
  • Kia Optima
  • Porsche Cayenne S E-Hybrid
  • Porsche Panamera S E-hybrid
  • Toyota Prius
  • Volvo XC90 T8
  1. c) Hybrid Electric Vehicles (HEV)

HEVs are powered by both gasoline and electricity.

HEV Examples

  • Toyota Prius Hybrid
  • Honda Civic Hybrid
  • Toyota Camry Hybrid

Sources:

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