Electric cars are the new flavor of the season, and they are here to stay. The success of Tesla Motors, Inc. (NASDAQ: TSLA) gave the industry a much needed boost, and many automakers (small and large) are aiming to get a share of the market given the increased regulatory awareness over zero emissions.
From the investment perspective too, electric car companies are getting their due. Investors support for Tesla is a huge example as its stock price climbed 272 percent in the last two years.
Tesla's Model S is being offered with two battery packs: a base model with a 60 kW·h battery which can deliver 230 miles (370 km) and an 85 kW·h battery which can deliver 300 miles (480 km). It is a premium sedan costing $71,000.
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In addition, Tesla will start selling the Model X crossover in 2014 with full-fledged sales expected in 2015. The company is working hard to get the design of the Model X right. The company expects to sell Model X in limited volumes at the end of next year, and then volume production would recur in 2015.
Since Model S is expensive, competitors are working on affordable affordable vehicles. Even, Tesla CEO Elon Musk hinted at $30,000 car arriving probably in 2016.
All leading automakers, including General Motors (NYSE: GM), Ford Motor Co. (NYSE: F) and Toyota (NYSE: TM), are working on their own electric vehicles. Here is a brief overview of upcoming electric cars that may challenge Tesla.
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GM already has an affordable all-electric car—the Chevy Spark—in its lineup, which features a range of 82 miles and costs about $28,000.
GM's Chevrolet Volt (plug-in hybrid) and Ford Focus Electric gives a mileage of 38 miles and 76 miles, respectively. Both these vehicles cost around $35k to $40k.
Meanwhile, Kia Motors has confirmed that a new all-electric version of the Kia Soul is scheduled to! go on sale in overseas markets during the second half of 2014. Equipped with a high-capacity 27 kWh lithium-ion polymer battery pack, the Soul EV will be able to drive more than 200 km on a single charge.
The all-new Mercedes-Benz B-Class Electric Drive could hit the markets next year. It claims an estimated range of around 115 miles (200 km). The maximum speed is electronically limited to 100 mph (160 km/h).
BMW i3 is expected come to the United States next year, and can travel 186 miles when equipped with an optional range extender. Sans this feature, the car will be able to travel about about 93 miles, on a single charge. The company has not yet revealed the price for the i3 or any of its options, but it is likely to be well under $42,000.
Automakers Nissan and Renault are trying to expand their EV line-up by investing more than $5 billion. The Renault-Nissan alliance has six electric vehicles on offer, including Nissan's Leaf and Renault's Zoe mass-market sub-compact cars.
Nissan Leaf comes with a range of 75 miles in the sub-$30,000 category. Toyota Prius plug-in hybrid costs around $32,000 and gives 11 miles in its electric run. Honda Fit comes for about $37,000 and provides a driving range of 82 miles.
The competition is interesting, but, the focus point is how these automakers will convince buyers and improve the uptake of electric cars. They could do that by providing vehicles with decent mileage at affordable prices. They should also prove the safety of their vehicles as even a 5-star rated car (Model S) in safety couldn't avoid fire risks.
From Tesla's point of view, it should release a sub-$30,000 vehicle to reach the mass market. The company boasts of a compelling technology coupled with R&D and marketing acumen.
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