06 Apr '11, 11pm

Electric vehicle newcomers still in front after first round, but for how long?

Canny doesn't seem to understand what Elon Musk does - that small, economical electric cars are not viable alternatives except in niche market spaces. Regardless of the company's size, battery costs are still too high for that market to go electric. That leaves high end price levels, where, as demonstrated already by the Model S, electrics not only can compete, they can win. At those price levels, 5 million unit orders of a part are not going to happen. It is also a very misleading claim he makes that high volumes provide giant price rreductions - they do not. Most price reductions for large orders get much smaller then larger the order. The reductions are anything but linear and there reaches a point where the price simply cannot be reduced any further. That point does NOT occur at the 5 million unit mark, but after mere thousands. Canny also forgets that large automakers...

Full article: http://green.autoblog.com/2011/04/06/electric-vehicle-new...

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