My opinion on "why the US likes SUVs so much (in addition to the "I have a brood of kids and station wagons are not cool in the US" feelings most americans have).
1. On your point of "most Americans can not afford Tesla's, I agree, but that is because "most Americans can not afford new cars" as someone said. Most americans that can afford a popular new car like a camry or accord can afford a SR+
2. Americans that can afford new cars tend to be "more established" also known as older
3. Older Americans who can afford new cars are likely living pretty well, and many of them are larger, and/or less flexible (or both) as they get older.
4. Many Americans have a desire to "sit up high" so "they can see" while driving. they also dont have to "fall down into" or "climb up out of" a SUV or Crossover like they do a sedan.
The current crossover is simply a big, lifted sedan in many cases... so that a person can have a sedan but "sit up high" and "not fall down into the car, or climb up out of it".
On thread topic, when people are picking a crossover vs a sedan, most times they are not paying attention to the fact that the crossover costs more to drive than the sedan... but they WILL pay attention to the range difference in a Tesla. If there is one thing I have learned here over the year I have been a member of TMC, its that people will freak the $%@%@ out over 4-9 miles of range like I would have never believed before.
The crossover is the "new suv" for the family, and most people in an SUV (even with kids) really should be in an station wagon, but Americans have this picture of station wagons that includes fake wood paneling, "woodys" and grandma's car. They should either have station wagons, or mini vans, but mini vans also have a stigma now, but are really the perfect car for someone with a few kids. Most people who can afford a new car and have 2 or more kids should likely have a mini van / station wagon, not SUV / Crossover, but americans have somehow decided that SUVs dont look like you have a brood of kids, while mini vans look like you should be wearing a fanny pack and have a diaper bag slung over your back at all times.
On thread topic, since tesla just raised pricing in the last quarter, and people seem to have forgotten about it already, they can "lower pricing" to simply put it back where it was before the 4th quarter. Someone else mentioned this in this thread I believe. My personal belief is that we will see a 1k price drop, near the end of January, beginning of February. When this happens, I want everyone to remember that this is actually not a price cut, its just putting pricing back closer to pre quarter 4 pricing.
I agree, but tend to disagree with the purchasing ability of most people in this country. Most people live from paycheck to paycheck. The rising costs of new cars in recent years has just put more people in more debt. I think I have heard the statistic that 10% of all auto loans are 90 days or more in arrears. We basically have easy credit that most people can’t or won’t pay when they realize they are way over their heads.
A Honda accord starts at about $25K - far from the SR+ at $39K. I think a Camry is more than an Accord. This poses a problem to Tesla and (soon to be) Ford - where their “consumer priced” electric cars still lock out all but the above -average moneyed consumer.
Americans that can afford new cars are:
- younger, who have no other major obligations (mortgages, etc) - and specifically
want a new car.
- 30’s-40’s who have a reasonable family income, can swing a car payment, or just
want a new car.
- 30’s to 60’s who have a decent income and can afford a car (cash) and have less overall expenses.
- most people I know over 60 are looking to future retirement costs and only the wealthier among them can think of owning a new car.
- very few people ever gets “established” - as high incomes are fleeting. As people get older, they most often become less valuable in the job market.
- I suspect that Californians are different than most - as this state is very car (and mobile) oriented. It would, in part, explain why Tesla does so well here.
The point I am making here is that to own an (front line) EV In 2020 requires the means and desire to purchase one. Teslas and it’s soon to arrive competition are discretionary purchases and people buy them if they have an excess of personal cash flow - or they are willing to modify their lifestyle to own one.
This will pose a problem for any carmaker in the future. We are already headed that way with excessively priced new cars. Cheap credit will not be around forever, and take a major bite out of the auto industry. Home ownership is down and if pitted against the more expensive car segment - the car segment will lose. Automakers will need to make a seriously affordable EV to capture the less affluent. Tesla is no exception. People are not going to get in debt over their heads to “save the environment.” Sad - but it is reality.
It really is the scenario of “haves” and “have nots.” No simple social change will fix that. This is why the incentives provided by the US government have been so shortsighted. They need to be tied to income, increased and not turned into a game. If not, widespread EV adoption will take a lot longer than expected.
Model Y’s will sell well in the US - and in most countries. But after sales of a few million, the market will be saturated - in most countries. Cost will be the cause for saturation, not the desire to own one. It’s unfortunate.
