Recently, there’s been some bad news out of Detroit. Ford’s backing off on some upcoming EV models, including a three-row SUV many had been looking forward to, and will instead be focusing more on hybrids. GM has been having different problems with software, recently laying off 1,000 developers after a string of Silicon Valley types failed to acclimate to more traditional corporate culture.
While these companies would like to have us all believe that making EVs and software for EVs is simply too hard, other companies like Tesla and Rivian have been doing a lot better. Tesla is now making more EVs than anybody, even beating out ICE models in some segments. Rivian is still climbing the profit ladder, but is selling software to Volkswagen, a pretty good sign that “legacy auto” is struggling in odd ways while newcomers are having no problem churning out EVs.
So, we need to ask ourselves why these established players are struggling while newcomers are doing just fine.
Silicon Valley types failed to acclimate to more traditional corporate culture
Ford: We suck at software, hire different people to do it better.
Also Ford: The different people are doing things differently and my ancient management structure is scared and confused! Fire them!
Bringing in experts to fix your problems, then not letting them. Classic.
GM, not Ford, but your point stands.
including a three-row SUV many had been looking forward to,
Who. Who was looking forward to another fuckhuge 8 ton SUV on the road?
A whole lot of people that neither need one nor can actually control the damn thing
Also a lot of them can’t afford it.
Money they don’t have on things they don’t need
Lots of people want to switch to EVs but there basically aren’t many options for 7-seaters (the Tesla X and Y both have 7 seater configurations but the back row is basically useless for actual normal sized humans). So the 7-seater+ gasoline powered SUV still sells like crazy in the U.S. market.
my kingdom for a sub $25k, 420 mile per charge, hatchback EV. Make that, make it dependable, without any subscriptions or fancy electronics that accidentally brick the car out of nowhere, and you’ll be able to buy the bank.
Maybe in 5-10 years unless it’s a Chinese OEM.
We’ll get there though.
A 300m version, hopefully much sooner.
The average person can’t afford a $150k truck… Too much emphasis on computation instead of a vehicle that goes from A to B
Rivian and Tesla make products for a different consumer demographic than Ford and GM. Ford and GM make cars, Tesla and Rivian make tech products that drive. Some people want what Tesla and Rivian are selling: advanced, high tech machines that don’t look or operate like a traditional car, and some people want what Ford and GM are making: cars. Just cars. I don’t think most car buyers care all that much if their car is ICE or electric, as long as it’s affordable, easy and convenient, and meets their transportation needs. I don’t think EVs can replace ICE vehicles until they are just cars, that meet the needs of people who need a car (or truck).
I look at something like the Chevy Silverado EV Work Truck. It’s a good truck, that does truck stuff, with a lot of range and good power. But, it’s $80k. Most people just ain’t gonna spend $80K for a work truck. Some people will pay $90K to $100k+ for a high end luxury truck, like the Hummer EV truck or the GMC Sierra EV Denali, but those are high end vehicles for a relatively niche market. The mainstream options just aren’t quite there yet. Battery prices have to come down more, so that vehicles can be price competitive, AND, there needs to be more charging infrastructure.
That being said, there are options coming to the market that are getting close, like the Chevy Equinox EV or Honda Prologue. Those are relatively affordable, decent to good cars, that also happen to be electric. I think the only thing holding those cars back from wider scale adoption is charging infrastructure.
I’m not convinced that this comparison is true anymore.
I think Doug Demuro phrased it well when he called the Model 3 “The Greatest Appliance Ever Made”. The M3 and MY LR RWD cost the same as the cheap Ford and Chevy cars and crossovers / "CUV"s. Teslas aren’t just playthings for tech bros. Now, Rivians on the other hand…
Tesla’s have become much more price competitive, in those two segments (obviously that’s not the case in the truck segment, since the Cybertruck is the most niche of niche trucks). If you’re looking specifically for what Tesla is selling, it can be a great option. But, not everyone wants those models. Price isn’t the only dividing line, it’s also how it drives, styling and features, but also the brand. Companies like Ford and GM are pretty simple: they make and sell cars. Tesla is explicitly trying to disrupt the auto industry. I don’t think everyone wants to buy a disruptive product. I think Tesla has tried to “fix” problems that weren’t really problems, at least not for everyone. For instance, I don’t think most people were thinking, “I wish I could replace all the physical dials and switches in my car with a single, 20 inch iPad.” Or, “I don’t like how door handles work, let’s change them.” Tesla is clearly selling what some people want, I’m just not sure it’s what most people want.
Obviously people can buy whatever they want, whether it’s for a rational reason or not. It would be cool if any other vehicle on the US market could hit the same balance of performance, range, speed, price, etc.
It would be cool if any other vehicle on the US market could hit the same balance of performance, range, speed, price, etc.
It could and the US government has explicitly banned that from happening because it would put the “legacy” (and what legacy is that, exactly?") automakers out of business overnight.
