http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/ Engadget Comments for http://www.engadget.com/media/feedlogo.gif http://www.engadget.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:32PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:35PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:54PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Oh, I forgot, OPEC pays them not to!]]>Mar 27th 2009 3:03PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 3:12PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 4:49PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Even if its under warranty, I haven't seen too much shops that carry tesla parts in stock!

Plus what are they going to do, give you a replacement while your car is being fixed? Wonder what kind of car THATS going to be lol]]>Mar 27th 2009 5:02PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 5:05PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 6:16PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/]]>Mar 27th 2009 7:47PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
in this economy even $5,000 is expensive!]]>Mar 27th 2009 2:34PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/I call shenanigans!!!!]]>Mar 27th 2009 3:07PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
How is the Tesla Roadster a lie?? It started at $99,000, and has had to be raised to $109,000, which is not a huge increase in cost when compared to the new technology that is in the car. Also, with new battery technology, as well as larger batteries, this is certianly possible!]]>Mar 27th 2009 4:45PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
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So yeah, it doesn't even seem that expensive to me, even though I'd never take the depreciation hit on a new car. Then again, maybe once this car comes out you'll be able to pick one up on the used market for $20-$30k after a few years.]]>Mar 27th 2009 5:55PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
The bottom line is that these guys would have never had a chance under any other administration for even a $1 loan.

BTW the Chevy Volt has been around since the 70s and it gets touted every election year and *poof* becomes vapor, only this time Washington doesn't give a shit. Woooooot!]]>Mar 27th 2009 7:19PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 28th 2009 4:34PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:36PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 3:18PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
I was commenting on someone else's comment that the savings would pay for the car itself.
He never said it would cover the DIFFERENCE between a normal car and the Model S.
He said "the money I will save on gasoline in the long run will outweigh the costs of the car itself."]]>Apr 16th 2009 1:19AMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:37PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
The Tesla business model from day one has been: Build a hot electric roadster that would be too expensive for the average person but fairly rich people could buy it, get them excited about the company and use that to finance the S. The S would be targeted at the moderately wealthy who would normally buy a Mercedes E, BMW 5 or similar car. Use that money to begin financing a sub 20k version for the average person. All of this combined will hopefully push other car manufactures to invest in electric car technology driving the cost of components down making them more affordable.

They are building a whole new industry, this won't happen overnight or be cheap.]]>Mar 27th 2009 3:11PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
That's a rather interesting concept when you think about it, honestly.

Had GM considered going on that path: Expensive EV -> Moderately expensive EV -> Moderately affordable EV...

... GM would still be making an electric vehicle to this day. Unfortunately, it hasn't.

I would definitely get this car seeing that the range is 230 miles on a single charge, and the money I will save on gasoline in the long run will outweigh the costs of the car itself.

It's rather ingenious and creative way for Tesla consider that path. You take one expensive vehicle to fund the next vehicle down the lane. A nice progressive way forward-- thinking ahead. Does the Detroit Three do that other than worry about their pocketbooks?]]>Mar 27th 2009 3:22PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 3:33PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Yeah GM and the big car makers don't have incentive to follow a solid business model since they have the government to bail them out when they screw up.

As far as range goes I think a 150 mile range or there about is fine because the average person drives less than 25 miles per day according to a DOT study. This is where the rental car industry could benefit. We build efficient (plugin hybrid maybe) rugged cars that could be rented cheaply for long hauls. The key is a rethinking of that industry too. You can't price it to the point that no on will use it. If you play it right it will create jobs and would keep people from having to own and or maintain a car for their 1-2 vacations a year thereby saving consumers money and making the electric car even less expensive to own.

In the words of Michael Scott it's "Win-Win-Win"]]>Mar 27th 2009 4:16PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Sure it does. Electric engines are FAR less complex in terms of construction than ICEs. Once the volume of production increases, the cost of making an electric engine should eventually be cheaper than making a fuel-burning engine. ]]>Mar 27th 2009 4:42PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Assuming 100 miles a day (way overkill) @ 25mpg means you need 4 gallons per day.
Assuming $4 per gallon thats $16 a day to drive your gas burning car.
40,000 (not even the full 50K) / $16 = 2500 days or 6.8 years if you drove 100 miles a day EVERY day of the year.
So realistically, its going to take 10+ years to get the savings you speak of.
Most people who buy a car like this (especially those that LEASE one like the spokesman says) will never see that recuperation of the initial investment.

Spend $40,000 on solar panels for your home however, and they will be paid off in 10 years and you could live off the grid the entire time.


@Sisyphus - While your right that an electric MOTOR costs less to produce than a gas ENGINE, you have to keep the fuel source in the picture. Batteries to hold the electricity to fuel that motor cost alot of money right now, whereas a gas tank and fuel pump are comparably dirt cheap.
I sure hope we get to a place where batteries are cheaper, longer lasting and non-toxic. But I have doubts we will see a huge breakthrough in the near future.]]>Mar 27th 2009 6:09PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 7:32PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
A few problems with your calculations.

The article states that the Telsa S will travel 230 miles on $5 of electricity. That equals under 2.2 cents per mile. This means a daily journey of 100 miles would cost you $2 and 20 cents. That equates to $13 and 80 cents saving every day. That's a saving of over $3500 a year.

You suggest a break even point of 6.8 years. But you don't say what you base that on. Are you're comparing the Tesla S to a BMW 5 Series (base model). The initial purchase price is similar, so you'll start benefiting from the fuel savings from the first mile you drive. You won't have to wait 6.8 years. If you're comparing this car to a Ford Focus, then yes, because of the higher price, it will take a while for the Tesla S to pay for itself. But you have to ask yourself a simple question. Are the specifications of the Tesla S comparable to a Ford Focus? Is the 0-60mph speed the same? Do leather seats come as standard in the Focus? etc etc. Are you comparing like for like?

You also forgot to include maintenance costs. ICE engines need regular maintenance. Oil changes, filter changes, parts fail all the time. It is a well known fact that car manufacturers make a considerable amount of money from spare parts.

GM's EV1 on the other hand was notorious for requiring very little with regards to maintenance. One clear reason it was discontinued was the fact that GM realised they couldn't make any money on spare parts.

When you add the savings you make on maintenance, and compare the Tesla S to a similar specced car, you see the car pays for itself a lot sooner than you suggest.]]>Mar 29th 2009 1:04PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
No one's forcing you to buy this. If you have an issue of where you think the money is going, build one yourself.]]>Mar 27th 2009 2:39PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/]]>Mar 27th 2009 10:04PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:39PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Other than that, it truly IS a hard decision. And I LOVE the 5-Series.]]>Mar 27th 2009 2:44PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 3:01PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 3:50PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 4:00PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Just because you can't afford one, doesn't mean it's vapor. I've seen several of the roadsters around the bay area. They shipped more than 100 of them last year, and last I read they plan to do 2-3 times that this year. It's not a lot when you consider the thousands that big auto companies make, but the demand for them is still more than they can make.]]>Mar 27th 2009 4:21PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Vapor-car ? What the hell are you smoking over there ? They've delivered close to 300 Roadsters so far and production is ramping up everyday... How is that vapor ? What the hell. Please do at least a little bit of research before passing BS as absolute facts...]]>Mar 27th 2009 9:39PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:40PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:48PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:41PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/however, anyone that realizes how fast an electric car is will buy one to be fast and quiet.
Im thinking these will be targeted at the Mercedes/BMW crowds.]]>Mar 27th 2009 3:07PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Exactly. They started with the roadster, targeted at a very small amount of people.
Now that they've made a name for themselves, they're targeting the still-small but MUCH larger Mercedez/BMW crowd.
Then, once they prove themselves there, they'll keep working their way down; Acura/Audi; then VW-ish. Maybe lower, but I kind of hope they don't.]]>Mar 27th 2009 11:00PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:42PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 27th 2009 2:49PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/

...freaking Edison. Grrr.]]>Mar 27th 2009 11:03PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/Mar 28th 2009 1:42AMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
Hopefully we will never meet in real life, that would be awkward for everyone involved.]]>Mar 27th 2009 2:43PMhttp://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/http://www.engadget.com/2009/03/27/tesla-ceo-says-model-s-isnt-really-expensive-when-you-think-ab/
So, saving $20 per 1,000 miles, I only need to drive about 1.5 million miles to break even.]]>Mar 27th 2009 2:45PM