The Tesla Roadster - A Glimmer of Energy Hope

Why would a car company want to operate out of Silicon Valley?  For starters, consider that about 20% of a car's value is now comprised of electronic components, and this could reach 40% by 2015 - in true compliance with The Impact of Computing.  This is already greater than the dollar value of steel or rubber in the typical car, and signifies the gradual shift of yet another technology into an information technology.

Silicon Valley's first car company, Tesla Motors, was founded in 2003.  Their first product, the Tesla Roadster, was unveiled in July 2006, and is a fully electric $100,000 car that can accelerate from 0 to 60 mph in just 4 seconds.  The cost of the electricity consumed is estimated to be as little as 1 cent per mile.  Pre-ordered units will be delivered to customers in early 2008.   

However, the initial Tesla Roadster is merely a symbolic product exercise for Tesla Motors.  The real market-shaker is the subsequent 'White Star', a 4-door family sedan using the same electrical technology that could be released as early as 2009.  It is expected to be priced at $50,000 to $70,000, and compete with BMW, Lexus, and Mercedes sedans.  It is possible that by 2012-13, a 4-door sedan that reaches middle-class pricepoints could be available in substantial quantities, along with Tesla's service support infrastructure to go with it. 

The benefits of a fully electric car that consumes just 1 cent of energy per mile are numerous, of course.  From a decline in the quantity of oil imported from the Persian Gulf, to an increase in the purchasing power of the average American, to a contraction of the US Trade Deficit, to a reduction of atmospheric pollutants, there are many benefits to our society if this technology can scale into replacing a significant slice of US automobile sales by 2015. 

Tesla Motors has a blog with a lot of good information as well, including the rate at which they expect cost efficiencies to manifest themselves. 

Whether Tesla Motors succeeds in its long-term vision remains to be seen, but they have done well enough so far to merit watching closely. 

Update (3/15/07) : Tesla is opening 5 dealerships across the United States.  Go see one, if you are in the same areas.

Comments

[jeffolie]

You are in denial. The concept is old. Electric cars have been produce by GM and withdrawn from the market.

These are not cost effective. I can buy a $10000 car and a couple lifetimes of gas for a lot less than $50000.

[GK]

jeffolie,

The efficiency of batteries and solar panels are both much better than they were in the 1970s. They continue to improve about 5% a year, which is slow, but still adds up over many years.

The $10,000 car you mention would be the bottom of the bottom. The 2012 version of Tesla's car could be as little as $40,000, and cost almost nothing in fuel, making it cost effective with $30,000 gasoline cars.

Small, incremental changes that add up over 8-10 years is the goal.

[frankwolftown]

I don't thinnk he's in denial. This isn't saying Tesla is the here all be all of new cars. It's saying something about the bussiness of electrical cars that has hasn't been done before. They're playing it smart. They came out with low number of cars even if only the rich can afford them you still have someone buying the car. If I were electrical car company that's just what I would do. Come out with couple hundered every year as long you sell each one. The main purpose isn't to mass market them but to get people to be familliar with them. Evetually someone will take a clue from earl "madman" muntz did with television. You strip it down and make it affordable. Yes, I know were still long way off but the tesla Motor is showing more brains than the previous failed companies before it. The style of the roadster is good enough that it makes you want to buy the car. Previous models like the EV1 despite the backing of big companies like general motors had little style. You'd be surprised how this detail can be dimissed only to come back bite manufacturer's in the rear. Yeah, I;m some guy on the interweb blabbing about this but who know something miniscule yet positive may come out of it. Like reviving the american auto industry and bringing some mannufacturing to the USA again. Just a thought! ;P

[Tushar D]

Jeffolie, remember when DVD players were $3000 a piece? Now you can get one for $30. The rich guys who shelled out $3000 for a DVD player financed the mass-mfg factories that churned out the $30 players. Did you even read the Tesla motors blog that GK linked? I do not know about the exact design they are planning, but with an electric car, you can probably just put motors (with some gears/flywheels) on the axle, and do away with the transmission.
Once mass manufactured, I think the Li-Ion battery pack+motors will be cheaper to produce than the gasoline engine+Transmission of a typical car. Also, the weight will also reduce.

[charles]

Yeah, I saw that car at the SF auto show, (it was right at the foot of the stairs, you couldn't miss it) -- It's nice to see that the "car industry" is actually spending development and R&D money into electric cars.

[GK]

charles,

Exactly. The difference between this and previous electrical cars is not just the technological advancements, but that this is 'cool'. It will become a status symbol as new green tech also becomes fashionable.

[jeffolie]

In 20, 30, 50 years maybe these 'dream electric cars' will be mass produced.

I have seen dream cars produced in the 1939 World's Fair, futurama, and science fiction. Making it to mass production is nowhere close to happening in the near future.

Dream on.

[GK]

jeffolie,

You aren't providing any reasons. Precisely what technological obstacle prevents this from happening? The 'cost-effective' point is already countered.

Note that hybrid vehicles already exist in much greater numbers than 3 years ago. In 2001, you probably thought hybrids had no prospects.

Also, do you deny that batteries and solar panels are both improving at 5% a year? That is a slow rate, but still adds up over 10, 20, or 30 years.

[jeffolie]

Fuel cell technology, gas turbines have been around for decades but have not made it into mass production for cars. They were not cost effective. History is replete with 'dream' cars.

Go ahead, dream.

[GK]

jeffolie,

Again, unless you can answer the specific questions, your argument consists of nothing more than "It can't happen because it hasn't happened yet.".

Do you dispute that :

1) Batteries improving at a rate of about 5% a year?

2) Photovoltaics (solar panels) improving their cost/energy equation at 5% a year?

Your cost-effectiveness point is already countered.

Furthermore, people don't avoid BMWs and Mercs because they are not cost-effective against Hondas and Toyotas. Brand can trump cost-effectiveness for premium consumers, and often does. Tesla is building a brand.

[Car Loans]

Interesting article. Any idea on where I can get more information on this?

[electric bicycle]

Spending 1 cent per mile, there is no better deal than that. Everybody should have a car like that. So why everybody does not go buy a tesla roadster? I personally think they must.