Thursday, May 27, 2010

Is Tesla the next GM

Recently I had the opportunity to tour Tesla's final assembly and sales location and came away not only impressed but thinking, is this the next GM? Think about the emphass on electric cars. Will a generation or two from now say, "You mean to tell me that your car had flammable liquids stored in it and you had to replenish them every 1 or 2 weeks!?" There is going to be a generation that can't fathom a gasoline powered car any more than kids today never being without cell phones.

There will be a point where virtually every family will have a hybrid or electric vehicle in the garage and Tesla seems to be leading the way with a battery-only vehicle for the street.

My question was always, why a sports car? As it was explained to me, I realized what a clever idea it was. Make it a halo car that gets a lot of attention, limited availability and light enough that with the battery power available the performance compares decently with other cars in the same $100k price range. Granted it isn't a quarter-mile monster nor a road circuit track star, but it is quite quick in the more-or-less legal speed ranges. Also, being a niche two-seater means it isn't improperly perceived as the final break from our dependence on oil. Get the attention, establish credentials, raise funds, research, develop and then take what you've learned and earned to establish a mass-appeal, obtainable 4-door. Brilliant.

The motor is made in Taiwan. The chassis comes from Lotus in England where it is stretched and heavily modified to accommodate the battery pack. The body and paintwork is done by a company called in France. The battery pack which consists of over 4,000 lithium-ion cells, is made in San Carlos, CA. Final assembly occurs at the "dealership" in Menlo Park, CA.

Granted this can be an expensive build process but right now it is passed on to the buying public. This is a great example of global outsourcing to keep overhead low and use the best available sources for a final product.

Edit: Ah yes, Tesla is still ahead of the pack, selling hundreds of thousands of EVs globally, making their fans ecstatic and driving critics nuts. Great commuter cars. 
















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