Tesla CEO promotes low cost of ownership
By Michael W. Jones
The new Tesla Model S sedan may carry a sticker price of $56,400, but company CEO Elon Musk says that the gorgeous vehicle is less expensive than it appears to be at first glance.
For one thing, Musk says that the Tesla, qualifies for a $7,500 U.S. Federal tax credit. That brings the cost down to $48,900. But that’s just the beginning. Because electricity is so much less expensive than gasoline, the actual cost of ownership is much lower than that. And that is not even taking into consideration all of the other benefits of an all-electric vehicle.
Tesla says, “The ownership cost of Model S, if you were to lease and then account for the much lower cost of electricity versus gasoline at a likely future cost of $4 per gallon, is similar to a gasoline car with a sticker price of about $35,000.” That brings the car into the range that consumers would expect to pay for a car about the size of the Model S.
Musk also notes that because they have fewer moving parts and don’t require such routine procedures as oil changes, electric vehicles should also have lower maintenance costs. “Model S costs roughly $5 to drive 230 miles–a bargain, even if gasoline were $1 per gallon,” Musk said.
And that was not all the money news from Tesla motors. Musk announced that the company is close to receiving as much as $350 million in loans from the U.S. Department of Energy. The money would be used to build a plant in California that would manufacture the Model S sedan. Production is likely to begin in late 2011. Deliveries would begin in 2012, according to a CNET story.
Musk, working put of the San Carlos headquarters of Tesla Motors, is almost single-handedly bring the all-electric car into its own in the U.S. The cars are extremely well styled, and the engineering seems to be of the highest order. Still, it is difficult for one man to promote the concept of practical (and beautiful) electric vehicles, and to get those cars built within budget and within even self-imposed time constraints. It is an uphill fight, but Musk appears to be fighting the problems to a draw.
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