Update on Tesla's Electric Roadster: GM Shouldn't Have Crushed its EV1

December 17, 2006 – Vol. 11 No. 39

UPDATE ON TESLA’S ELECTRIC ROADSTER:
GM SHOULDN’T HAVE CRUSHED ITS EV1.

If Toyota’s predictions are true, sometime next year the company will eclipse General Motors as the world’s largest car maker. Toyota’s steady rise to the top has been on its reputation for high-quality vehicles and its offerings of relatively fuel efficient cars and light trucks. Because of Its hybrids, Toyota is one of two environmental darlings in the auto world. For now anyway.

GM’s biggest mistake was to recall its fleet of battery-electric EV1 coupes and send them to crusher. At the time it was the best electric car ever built. Had GM continued to develop and build the car it would be cleanest, most energy-efficient car on the planet. Today GM would be an environmental sweetheart too.

The electric car GM should have been building today - probably in a second generation by now, EV2 - would be as good as or better than Tesla’s all-electric roadster now nearing production. GM’s electric certainly would be less expensive than Tesla’s car.

GM’s bad decision is all water under the bridge, of course, and the company is trying to reverse itself with an announced plug-in hybrid. Still, GM executives must be kicking themselves as they watch Tesla Motors proceed. Tesla is now building what many at GM probably wanted to build: Think electric Corvette. Here’s the latest from Tesla:

--- Tesla’s first run of cars - the 2007.5 model year - has sold out with something like 220 cars sold at a sticker price of $100,000 or so.

--- The first run of cars will be delivered in late 2007.

---The company is now taking orders for the 2008 model year.

--- Around 2010 the company will be offering a luxury, all-electric sedan dubbed the WhiteStar. The car would compete in accommodations and performance with a BMW 5-series and sell for $50,000 -75,000 a pop. The company would build 10-20,000 per year.

--- A new 300-employee factory will also be built to manufacture the WhiteStar. California wants the factory there, but North Carolina and Arizona are both offering Tesla tax breaks to lure them in.

--- Tesla may also license its electric drive to other manufacturers.

--- The company seems to be growing as well, with more than 2 dozen career postings for professional positions at the company’s website.

In truth Tesla is doing well (and GM not) partly because of a growing awareness with the public about global warming and the public concern about relying on oil from countries that don’t like us very much. For the most part the public had neither of those concerns in the late 1990’s. Visit Tesla Motors at http://www.teslamotors.com/