A person could be forgiven for thinking that all the hoopla in the business press about Tesla Motors Inc. (TSLA) has raised Americans’ awareness of battery electric vehicles (EVs) and other plug-in hybrid electric vehicles (PHEVs). Forgiven, yes, but still wrong. Badly wrong.
A recent survey by strategy consulting firm Altman Vilandrie & Company discovered that 60% of Americans don’t even know that EVs exist. A full 80% have never ridden in one.
There was also some good news. According to the survey, 60% of respondents who had driven or ridden in an EV “enjoyed” the experience compared with just 8% who did not. Survey co-director Moe Kelley told NGTNews:
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While the EV adoption rate is low, there are signs of strong latent demand in the marketplace. The auto industry still needs to make more low-priced models available to consumers, as well as finding a way for more drivers to try out an EV. If those things happen, we should see the EV adoption rate accelerate.
General Motors Co. (GM) began delivering its 2017 Chevy Bolt to dealer showrooms in December. The all-electric Bolt has an advertised range of 238 miles on a single battery charge and sticker price of $37,500. Tesla’s Model 3, due out later this year, is expected to have a range of 215 miles and a base-model sticker price of around $35,000. Previous EVs have been priced higher, usually double or more than the Bolt or the Model 3.
The average U.S. new car price in 2016 was $34,077 according to Edmunds.com, and the analysts there expect the average to rise to $35,000 in 2017. With federal and state incentives, the Bolt’s price could drop to around $29,000. Tesla CEO Elon Musk has said a normally equipped Model 3’s would run about $45,000, before incentives.
So, the price is right, or getting there in Tesla’s case. But have we seen a single ad promoting the Bolt? Will we?
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