A matter of economics
Dec 28, 2022
Elon Musk has often stated that his goal is "to accelerate the advent of sustainable transport". The big problem for him is that it's, at present, economically unfeasible:
Switzerland may become the first country to limit the use of electric vehicles (EVs) in a bid to ensure energy security this winter, German daily Der Spiegel reported on Thursday.
Under the proposed action plan, which is yet to be adopted, the use of EVs in the country could be banned except in cases of “absolutely necessary journeys.” The government also plans a stricter speed limit on the highways.
Tesla, and other EV makers, would have little problem selling their cars to the masses if the price of oil kept going up and electricity remained relatively cheap. More and more people would opt for the EVs because of simple economics. Unfortunately, in the past 15 years, the price of oil has decreased from a staggering peak of $190 to $80 while electricity has tripled in price (in Canada). The situation is much worse in Europe. In Italy, it's now shockingly more expensive to juice up an EV vs. filling up a normal car with petrol.
There will always be a niche market for EVs. They're relatively low maintenance and the speed and torque for in-city driving is superb. However, given the economics, the average guy won't be able to afford one in the near-future. The above average fellows can have a fun EV and a regular vehicle for covering larger distances.