Do Androids Dream of Electric Cars?

If you’ve heard of Elon Musk, then you’ve heard of Tesla Motors. Musk originally made his millions by co-founding PayPal. He has since used his overwhelming success to fund businesses that he believes will improve the future of our planet. He believes that it’s possible to generate profit at the same time. That future, however, could be quite a ways away.Tesla Motors recently made business news when it’s stock price bounced higher than ever, bucking the day’s downward spiral that seemed to affect just about every other tech company. What did investors see in the company? And why did they decide, just a few days later, that they were wrong, causing the stock’s value to plummet just as quickly as it had risen?Musk talks a big game, but it isn’t always easy to understand him. He’s obviously one of the smartest people that you could meet, but he’s not great at meeting people on their level. If the defining factor of a genius involves the ability to take ingenius ideas and communicate them understandably to the average person, then Musk is certainly no genius. He often comes across as smug and somewhat spastic. He wants to talk about energy conversions when everyone else just wants to know how freaking far his cars will drive on a single charge. Plus, he has a weird South African accent that screams “not one of us!”

Musk’s personality is a boon and a hindrance. Regardless, it isn’t Musk’s personality that will make or break Tesla’s future. It’s the cars.

Tesla Motors has two models to choose from. The Roadster is a sports car that immediately conjures cliches such as sleek and stylish. Honestly, it looks pretty awesome. Hey, George Clooney has one, so it must be cool. George Clooney also has enough money to pay the $100,000 price tag.

For a long time, price has been Tesla’s biggest problem. They’ve developed technology that will enable electric cars to travel over 200 miles on a single charge. The lithium-ion batter even lets them travel that distance fast. It is, after all, a sports car. But there aren’t many people willing to pay $100,000 for a car. When they do, they typically go for the old favorites that burn lots of gas. In order for someone to buy the Roadster, they need a lot of cash, an understanding of why electric cars are an important step towards a better future, and the desire to parade around in a vehicle that is going to get a lot of attention. So, basically, George Clooney.

Over the past two years, though, Tesla has made a big step towards a more affordable option: the Model S Sedan. It’s not as sporty as the Roadster, but that’s part of the model’s point. It’s supposed to be a car that’s right for the family. Priced at $50,000, it’s at least more affordable than the Roadster. It’s still tough, however, to convince people to spend $50,000 on a car that they don’t know much about. To date, Tesla hasn’t even built 1000 vehicles, so how does anyone know that the cars will have good lifespans? The Model S is quite a gamble, but much more reasonable than the Roadster.

The government even helps lower the cost. Anyone who buys a Tesla qualifies for a $7,500 tax rebate. Come on, if people will buy a house to get $8,000, certainly they’ll buy a car for $7,500 of nearly-free money. Plus, Tesla Motors points out that you’ll save money in the long run by driving their cars. It only costs a few pennies to drive Tesla models a mile. In addition to these immediate savings, drivers will also contribute less pollution to the atmosphere that will, inevitably or hopefully, some day have to be cleaned. Such a project will almost certainly receive federal funding from tax dollars, which means each one of us will have to pay for the effort. Ergo, less pollution equals lower taxes in the future.

On the other hand, wait until you need to find a mechanic to work on the high-tech machine. You might want to save every penny that you keep from charging up at home instead of fueling up at a gas station. Assuming you could even find someone who will work on the cars, you’d more than likely spend a ton of money on the parts and service.

Despite the technological advances, cool aesthetics, and smart talking points, Tesla Motor’s has a limited future. That’s not the company’s fault. It’s a matter of infrastructure. Currently, there just aren’t that many charging stations for Tesla and other electric cars. Sure, you can drive up and down the West Coast Highway all day long (there are multiple charging stations along that historic stretch of road), but try driving from Louisville, my hometown, to, for instance, Charleston, SC. The drive is about the same distance, but there aren’t any charging stations along the way. Instead, you’d charge up and home and then find yourself stuck somewhere in Tennessee a few hours later.

The problem is that the federal government, despite its insistence that it promotes “green” technology and their payouts to consumers who buy electric cars, just hasn’t shown enough willingness to build an infrastructure that makes electric cars possible. Until that happens, only a small number of people will even want to purchase a Tesla. And most of those people will be in California, where the state has made more efforts towards building such an infrastructure (even in cities like L.A., though, driving an electric vehicle could be a serious pain. It’s not like there are charging stations every other block like there are gas stations).

Those who complain that the government shouldn’t invest in such an infrastructure might want to back up a bit and take a look at the history of motor vehicles in this country. Cars have become the most common form of transportation specifically because the industry was backed by the government. Without the government paying for a massive interstate system, traveling by personal vehicle wouldn’t be nearly as appealing.

The government has also thrown billions of dollars at the oil industry. And I mean billions per year, not over decades. The subsidies keep gas prices artificially low. Then, of course, state governments charge you a gas tax at the pump. So you’re paying a tax on a product made cheap by your taxes? Thanks governments. Thanks a lot.

In order for Tesla Motors to truly pull ahead and win the confidence of drivers, they’re going to have to do what Detroit did so well for so long. Lobby like crazy to get the government to do what they want. Musk made his money the capitalistic way. He came up with a good idea, found private investors, and made a ton of money. Real success in the American auto industry, however, has always relied on government sponsored programs. Until Tesla realizes that and starts playing politics with the federal government as well as California’s, it’ll never overtake the gas-dominated market.

  • (Image via: Chicagoist)
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