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Will the continued low price of gas affect EV (or Model 3) sales?

Discussion in 'Model 3' started by Config, Feb 27, 2016.

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  1. pmadflyer

    pmadflyer Member

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    Back in reality, people want the model 3 because Teslas are cool, safe, and quick. I've heard dozens of people say they want a 3, none have said it's for the environment.

    On the topic of fuel, it seems the majority of people aware of Model 3 are also aware gas will go up. My generation seems more comfortable plugging in then gassing up, anyway.
     
  2. doubleatheman

    doubleatheman Member

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    Low gas prices have been actually encouraging me. I feel like Tesla will work harder to keep the cost of the car at 35k and get more features in the car to encourage people even when gas prices are low. Also if the initial rush of orders are lower, that means I might get my model 3 sooner due to gas prices. I know my view is self serving, and ultimately if prices for gas skyrocket... I feel like orders for the 35k Tesla will too, which is good for Tesla's bottom line.
     
  3. EcoHeliGuy

    EcoHeliGuy Member

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    To the OP question. No

    The majority of people I have a conversation with and myself included aren't buying Electric cars based on gas price. That's kind of an after thought and icing on the cake. Being an electric car and a Tesla are the reasons alone.
     
  4. igotzzoom

    igotzzoom Supporting Member

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    This is why I want a Model 3:

    image.jpeg
     
  5. EcoHeliGuy

    EcoHeliGuy Member

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    Have you seen the pictures from some California based superchargers on long weekends?
     
  6. igotzzoom

    igotzzoom Supporting Member

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    Well, maybe I spoke too soon. The difference is, unless you're taking a road trip, you have a choice with an EV, whereas with an ICE, it's Costco, or pay through the nose at a regular retail station.
     
  7. EcoHeliGuy

    EcoHeliGuy Member

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    Yes in that case I agree
     
  8. GoTslaGo

    GoTslaGo Learning Member

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    Yes most of the people gassing up at Costco in this pic are likely just filling up for the week (commuting, errands, etc...). With the Model 3, they would hopefully just charge up at home. No more gas stations. My wife can no longer relate to my gas station runs.

    For folks renting here's a nice video on Youtube about charging options:

    Tesla Model S Charging for Folks Who Rent - YouTube
     
  9. vinnie97

    vinnie97 #WalkAway

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    Costco is only 2 cents below Texaco in my locale. Not worth the $100 (or more) membership for me (and I don't do bulk buying).
     
  10. doubleatheman

    doubleatheman Member

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    I'll be sure to watch that video when I can listen to the audio. I will likely still be renting when the model 3 is out.
     
  11. Bimbels

    Bimbels GoldMember

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    You could give me free gas and I still wouldn't want an ICE. I can't wait to replace our second car (which is an ICE we rarely drive) with another Tesla. I just drove it for the first time in a couple of months and I legit thought something was wrong with it since I was so unaccustomed to the engine noise.
     
  12. vinnie97

    vinnie97 #WalkAway

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    #32 vinnie97, Feb 28, 2016
    Last edited: Feb 28, 2016
    Tesla is trying to reach the more skint among us. The upfront cost is a killer, which is why I compromised with a hybrid back in '12. I love how it purrs in EV mode.
     
  13. Twiglett

    Twiglett Single pedal driver

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    For the past four weeks I have not needed to plug in away from home and have instead been serving 100% of my driving needs entirely from charging at home.
    It doesn't matter how low gas prices fall, I will never be convinced that it is worth switching back.
    Supercharger overcrowding is a myth perpetuated on what happens in a tiny number of busy locations in California and NY/NJ - usually from folks who are not using them for long distance travel. In CA many superchargers are <25 miles apart and even then Tesla look like they are planning on filling in those gaps.
    So I'm not even slightly concerns about "overcrowding".
     
  14. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    It would take fifty cent gas to break even, and going back to gas just isn't in the cards. They'd have to pay me $10/gal to interest me.
     
  15. Jaff

    Jaff Active Member

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    This is entirely dependent on where you live and in what circles you travel...by far, for most of the folks in my circles, the lessened environmental impact is the paramount reason.

     
  16. Brad_NC

    Brad_NC Member

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    Tesla wants (and needs) every customer it can get. However, the most important customers they can get are the ones who are buying the car for the cause, not for the Fuel Savings.

    Who spreads more good marketing words? People who drive EVs to save money on their fuel cost, or people who drive EVs for the betterment of the world?

    Dropping gas prices will impact sales, yes. But, initial reservations will be high enough that it probably won't matter for a few years. It will take a while for Tesla to be able to put cars on lots that can be driven away that same day.
     
  17. wdolson

    wdolson Supporting Member

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    In the US, the Model S was the only BEV or PHEV that had been on the market through all of 2014 that had an increase in sales in 2015 over 2014. For other cars, the cost of gas is affecting sales, but not Tesla.

    The potential pool of people for most EVs are:
    1) eco buyers - out to save the environment
    2) incentive buyers - someone seeking out government incentives to buy, this is especially a factor in places that allow EVs to drive in the HOV lane with one person
    3) people sensitive to energy costs - this is more true of people seeking cheap cars, the average Tesla buyer today could keep a Hummer fueled without a serious dent in their household budget if they wanted to

    The mainstream car market is still full of people looking at ICEs. Most hybrids have major tradeoffs for a bit better fuel mileage, but the Prius is the only hybrid that sells anywhere close to pure ICE cars. Additionally hybrids and BEVs usually have poorer performance than ICE. The Prius takes around 10s 0-60, and that's not unusual. There is a meme out there that if you are going to be eco friendly, you have to give up things and live a degraded lifestyle. This is perpetuated by a lot of the eco people themselves (I hear it all the time around Portland which is a super eco conscious city). The car makers just help fuel that meme by providing cars that are a compromise and not at good as ICE in a lot of ways.

    So EVs stay in the ghetto of the three groups outlined above.

    However Tesla competes head to head with ICE. You do have some trade offs, road trips aren't quite as easy because fueling stops take longer and there are more of them because of less range. However, Tesla outperforms the competition in every other area: acceleration, torque, cargo capacity, noise levels, etc. There are people here in the forum who are eco buyers, but the bulk of the public isn't. Making something that is good for the environment and better than the non-environmental alternative is the way to go if your goal is to get the world to convert. Right now Teslas can be dismissed by many because of the price, but that excuse will evaporate with the Model 3 and I think it will sell well regardless of the price of oil. Other EVs might go by the wayside because not enough people buy them, but Tesla is pretty much immune to the price of oil because they make something better than an ICE.
     
  18. vinnie97

    vinnie97 #WalkAway

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    I don't disagree with the gist of what you're articulating especially about Tesla's current supercharging network. However, for my use, I just can't fathom a Leaf (I can't complain too much about aesthetics since I'm sporting a Prius C). It's not a frequent occurrence, but I need the freedom to drive 80 miles outside my range on a given day.
     
  19. Twiglett

    Twiglett Single pedal driver

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    Thats my point - its an infrequent occurrence and in the places where SC's get crowded there is usually another one a really short drive away, sometimes a REALLY short drive away.
    Even more so if the crowding happens often - just go somewhere else, or shock, horror, choose a different charging option. Its not like SC's are the only way to charge a Tesla :)
     
  20. Stretch2727

    Stretch2727 Engineer and Car Nut

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    If you really understand what Elon is trying to do is make a car that is compelling regardless of the price of gas. This is why Tesla has auto pilot, great performance, super chargers and many other feature you cannot get elsewhere. He commented recently that he does believe that the low price of gas will effect the sales of EV's, but if you listen to the comment closely, he said other makers EV's, not Tesla's. The strategy is to make the Tesla cars compelling on all fronts not just operating economics. As for my choice to buy a model 3 it will not matter if the price of gas is $0.50 or $5.00. I will be at the front of the line as I believe the Model 3 will have performance and features you cannot get elsewhere at a similar price.
     

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