Electric Cars Are Here To Stay
In spite of all the efforts to make it difficult for electric cars to gain momentum, all indicators are showing that sales are growing, and popularity is increasing while the challenge for further growth remains. Let’s take a look. Tesla is prepared to launch its first Robotaxi called the “Cybercab” by the end of June 2025 in Austin Texas. Here are the highlights of the Cybercab:
- It is the first autonomous vehicle without pedals and a steering wheel.
- Inductive charging capability without any cables.
- Cost is estimated to be about $0.20/ mile, which brings the cost of rideshare per mile below private ownership, the tipping point going forward.
- The price of a Cybercab is estimated to be around $30,000.
As promised Waymo also expanded its self-driving service to Atlanta through Uber app. Following Tesla, Lucid, Polster, Rivian, and now Scout/VW and Honda/Sony joint ventures are poised to sell consumer direct electric vehicles. In 2024, EV sales at 1.3MM were a 7.3% increase over the prior year.it also reached a record high market share of 8.9%. In spite of the roadblocks of the government lifting California mandate of 100% electric by 2035, EV popularity along with green awareness of Californians, will naturally transition into 100% electric by 2035. The only challenge that is holding back greater EV sales still remains to be the availability of Charging Stations. California currently still around 180,000 chargers is far behind the 2.1MM needed by 2035.
Its time for the retailers start exploring their options in order to avoid to become dinosaurs, or better yet losing the value of their investment all together. Writing is on the wall:
- Vehicle registrations among 18–34-year-olds fell below 10% in the last two quarters
- Fewer teenagers are inclined to even get a driver’s license
- Autonomous ride per mile coming in under private ownership
- Manufacturers are on a mission to bypass retailer network with direct sales
- Temporary shift to hybrids will be eliminated by increased charging station availability and longer ranges in EVs.
In an ever so rapidly changing business environment in the auto retail industry, which is worth 5 trillion dollars in retail sales, time has come to think outside of the box and quickly. Especially in California, but also in the rest of the US market there are exciting opportunities if you take advantage of this evolution and stay proactive, electrification may very well be the new business model and charging stations are the very first opprtunities. I would like to hear from you to discuss such opportunities. See you next month…
Yours truly,
Arlan Tarhan
(310) 717 1876, or Arlan@convergentalliance.com