December 26, 2018

YOUR NEXT CAR WILL BE A VOLT:

Think Electric Vehicles Are Great Now? Just Wait... (Dan Neil, 12/26/18, WSJ)

This is above all a pocketbook issue for me. A gas-powered vehicle would be too expensive. I plan to keep my next vehicle 10 years, at least. Over that time the cost of ownership for an EV, including fuel (on the order of a penny a mile for the electricity), repairs and maintenance would be considerably lower than comparable costs of an IC car.

My other big worry: resale value. In case you haven't been following the news from the Paris climate talks, most nations of the world have put the IC vehicle under a death sentence. Post-Paris, the International Energy Agency (IEA) estimates that there will be between 125 and 220 million EVs on the road by 2030.

We are living through the S-curve of EV adoption. The total number of EVs on global roads surpassed 3 million in 2018, a 50% increase over 2016, according to the IEA. In November Tesla Model 3 was the best-selling small/midsize luxury sedan in the U.S; and Model S sales (26,700, year to date) outsold Mercedes-Benz S Class, BMW 6- and 7-Series, and Audi A8 combined, according to industry-tracker goodcarbadcar.net.

During the reasonable service life of any vehicle I buy today, I expect the demand for IC-powered vehicles will drop to practically zero, equivalent to the current market penetration of flip phones. No one will want them and there will be nowhere to get them fixed; by that time widespread fleet electrification will have cratered traditional dealerships that depend on service dollars to survive.

Posted by at December 26, 2018 7:01 PM

  

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