Connect with us

Lifestyle

EV prices are coming within reach of Millennials, but are they buying?

A Model 3 in the EU market is reviewed, delivery taken by Martin Welzl of Teslafinity. | Image: Martin Welzl/YouTube

Published

on

Welcome to a FREE preview of our weekly exclusive! Each week our team goes ‘Beyond the News’ and handcrafts a special edition that includes our thoughts on the biggest stories, why it matters, and how it could impact the future.

You can receive this newsletter along with all of our other members-exclusive newsletters, become a premium member for just $3/month. Your support goes a long way for us behind the scenes! Thank you.

The younger adult generations are significantly on board with environmental causes that have car-centric responses, namely climate change, but ironically enough they are also the generations with the least financial capability of purchasing EVs.

A study recently published by Cox Automotive showed that only 10% of EV buyers are between the ages of 25 and 34, and the reason purported is price. The same study showed that some 70% of EV buyers have incomes of $100k and above, which might be a more common take home pay in Silicon Valley for young people, but not so much everywhere else.

Advertisement

Despite these observations, however, there seems to be a light at the end of the tunnel with the cost gap between ICE and electric cars finally starting to narrow. EV battery prices have reduced about 70% since 2010, and the overall price of vehicles like the Nissan LEAF have decreased by about 2.5% since 2012 while similar ICE vehicles such as the Nissan Maxima have increased by 7.5%. Another interesting point about this consumer demographic is the awareness about EV benefits. Cox Automotive found that 65% of young consumers know charging costs less than gasoline, and I’d toss in my own observation that Tesla has an enthusiastic fan base comprising a large number of young people as well.

But the old bogeyman is still as big a concern for this crowd as any other: Range anxiety. Sure, Tesla is doing a great job getting rid of this particular worry monster, but then we run into the issue of purchase price. And that’s not the only thing.

Another issue exists that deters young buyers: Urban living. If you’re a resident of, say, New York City, car buying is a ridiculous expense that makes cost of living even more impossible. What’s more, access to public transportation (itself another response to environmental concerns) is pretty decent. Throw in the cost of auto insurance, and yikes! When I worked in NYC as an early 20-something, my insurance alone was over twice what my car payment is today, and I only used the darn car to get myself to the train station in the morning. Yes, Tesla is also working on this, but Tesla’s cars are also more expensive than similar ICE vehicles, bringing us back to square one.

Then there’s another complication for most young people who do have the $100k+ income to buy a “standard” EV a la Tesla: Student debt. Even with today’s income-based repayment plans to ease the burdens, young single people with high incomes usually don’t get any relief at all, which then eats away at their expendable income, which means less money for a car payment. Well, you may say, they make a lot of money and therefore shouldn’t complain. But most of them make that much money while living in a place that’s very expensive to exist in.

You may make a “good” income in the city number wise, but the cost of living often leaves you with less expendable income than if you lived elsewhere making much less. While working at an NYC law firm, for example, I noticed that the common practice for young attorneys was to live with several roommates in small apartments for a year or two working at a big firm solely to pay off their student loans. Many of them wanted to be doing something else they were more passionate about – public law, criminal law, etc. Those jobs just didn’t pay enough for them to live while owing on their loans. Then after the loans were paid, they could finally afford their own place, but what would the point be of purchasing a pricey EV when walking (or a subway hop) was the most practical commute option? Parking garages can be another car payment in themselves in those areas, too. At that point, gasoline is the price of lunch and a beer in the city – not really the deciding factor for these buyers.

Advertisement

Altogether, EV ownership doesn’t make sense for the majority of young people it seems, at least on the surface. If they can afford one to begin with, it’s not really a practical use for their money. Yes, many cities in California have more ideal brews for these customers: high income professions, less access to reliable public transportation, slightly better parking (same terrible traffic though), and plenty of EV charging stations. That’s not really a big picture motivation for car companies to build and sell EVs, though.

So, what’s an EV manufacturer to do? Prices may (or will, rather) eventually come within reach for lower income buyers (a problem that’s widespread over many demographics), but the other issues still exist regarding practicality and the expenses surrounding car ownership in places where large populations of young people tend to live and work. There’s also the question of whether young buyers as a demographic will matter overall if everyone can afford EVs, right? At that point, the uphill climb is less a “Millennial” customer and more an overall “big city” customer. After those customers move into the suburbs and have a better reason to own an EV, they’re easier to attract… They also won’t really fit that young person demographic, anymore.

I think Tesla has a good strategy with the upcoming Tesla Network for reaching absolutely everyone. When a car is no longer an expense, but transportation solution that’s also an income generator, young city dwellers might have a better reason to buy. If their car can be summoned when needed, parked somewhere cheap, making money when not being used by them, it’s a big win-win. And hey, every bit counts when a cocktail at happy hour averages around $20.

Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

Advertisement
Comments

Lifestyle

Tesla Cybertruck takes a bump from epic failing Dodge Charger

The Cybertruck seemed unharmed by the charging Charger.

Published

on

Credit: Hammer_of_something/Reddit

There comes a time in a driver’s life when one is faced with one’s limitations. For the driver of a Dodge Charger, this time came when he lost control and crashed into a Tesla Cybertruck–an absolute epic fail. 

A video of the rather unfortunate incident was shared on the r/TeslaLounge subreddit.

Charging Charger Fails

As could be seen in the video, which was posted on the subreddit by Model Y owner u/Hammer_of_something, a group of teens in a Dodge Charger decided to do some burnouts at a Tesla Supercharger. Unfortunately, the driver of the Charger failed in his burnout or donut attempt, resulting in the mopar sedan going over a curb and bumping a charging Cybertruck.

Ironically, the Dodge Charger seemed to have been parked at a Supercharger stall before its driver decided to perform the failed stunt. This suggests that the vehicle was likely ICE-ing a charging stall before it had its epic fail moment. Amusingly enough, the subreddit member noted that the Cybertruck did not seem like it took any damage at all despite its bump. The Charger, however, seemed like it ran into some trouble after crashing into the truck.

Alleged Aftermath

As per the the r/TeslaLounge subreddit member, the Cybertruck owner came rushing out to his vehicle after the Dodge Charger crashed into it. The Model Y owner then sent over the full video of the incident, which clearly showed the Charger attempting a burnout, failing, and bumping into the Cybertruck. The Cybertruck owner likely appreciated the video, in part because it showed the driver of the Dodge Charger absolutely freaking out after the incident.

Advertisement

The Cybertruck is not an impregnable vehicle, but it can take bumps pretty well thanks to its thick stainless steel body. Based on this video, it appears that the Cybertruck can even take bumps from a charging Charger, all while chilling and charging at a Supercharger. As for the teens in the Dodge, they likely had to provide a long explanation to authorities after the incident, since the cops were called to the location.

Continue Reading

Lifestyle

Anti-Elon Musk group crushes Tesla Model 3 with Sherman tank–with unexpected results

Ironically enough, the group’s video ended up highlighting something very positive for Tesla.

Published

on

Credit: Led By Donkeys/X

Anti-Elon Musk protesters and critics tend to show their disdain for the CEO in various ways, but a recent video from political action group Led By Donkeys definitely takes the cake when it comes to creativity.

Ironially enough, the group’s video also ended up highlighting something very positive for Tesla.

Tank vs. Tesla

In its video, Led By Donkeys featured Ken Turner, a 98-year-old veteran who served in the British army during World War II. The veteran stated that Elon Musk, the richest man in the world, is “using his immense power to support the far-right in Europe, and his money comes from Tesla cars.” 

He also noted that he had a message for the Tesla CEO: “We’ve crushed fascism before and we’ll crush it again.” To emphasize his point, the veteran proceeded to drive a Sherman tank over a blue Tesla Model 3 sedan, which, of course, had a plate that read “Fascism.” 

The heavy tank crushed the Model 3’s glass roof and windows, much to the delight of Led By Donkeys’ commenters on its official YouTube channel. But at the end of it all, the aftermath of the anti-Elon Musk demonstration ended up showcasing something positive for the electric vehicle maker.

Advertisement

Tesla Model 3 Tanks the Tank?

As could be seen from the wreckage of the Tesla Model 3 after its Sherman encounter, only the glass roof and windows of the all-electric sedan were crushed. Looking at the wreckage of the Model 3, it seemed like its doors could still be opened, and everything on its lower section looked intact.

Considering that a standard M4 Sherman weighs about 66,800 to 84,000 pounds, the Model 3 actually weathered the tank’s assault really well. Granted, the vehicle’s suspension height before the political action group’s demonstration suggests that the Model 3’s high voltage battery had been removed beforehand. But even if it hadn’t been taken off, it seemed like the vehicle’s battery would have survived the heavy ordeal without much incident.

This was highlighted in comments from users on social media platform X, many of whom noted that a person in the Model 3 could very well have survived the ordeal with the Sherman. And that, ultimately, just speaks to the safety of Tesla’s vehicles. There is a reason why Teslas consistently rank among the safest cars on the road, after all.

Continue Reading

Lifestyle

Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp

The ambitious, nearly 4,000-kilometer (2,485-mile) Tesla FSD journey is being livestreamed on Chinese social media.

Published

on

Credit: Douyin 老高懂电车

Count on Tesla drivers in China to push Full Self Driving (FSD) as far as it could go. As could be seen in videos posted on Chinese social media, a brave Model 3 owner is currently going on an epic journey from Henan Province to the base camp of Mt. Everest on FSD.

Recent posts from the Model 3 driver suggest that the ambitious destination may be within reach.

Epic FSD Journey

As noted by Tesla owner-enthusiast Aaron Li, the journey from Henan Province to the base camp of Mt. Everest spans almost 4,000 kilometers (2,485 miles). The journey itself is epic, with stunning vistas and roads that require some drivers to bring oxygen canisters with them. The fact that it is being done using FSD makes it extra impressive. 

Based on the videos that have been recently shared, the Model 3 running FSD seems to be nearing the Everest Base Camp. There seems to be a good chance that the Tesla Model 3 may reach its destination this Friday.

Previous Everest Trips

This is not the first time that a Tesla has driven to Mt. Everest’s base camp.  That would be a Model 3 that was driven in September 2020. That vehicle, which went on a long 5,500 km (3,400-mile) journey, was manually driven to its destination. 

Advertisement

In April 2021, Tesla China announced that it has completed the buildout of 11 Supercharger stations in the picturesque route from Chengdu to Tingri. This route would allow drivers to reach the base camp of Mt. Everest. Sure enough, in July 2022, Tesla China shared a video of two Teslas—a Model X and Model Y—reaching the Everest base camp without any issues. Numerous other Tesla drivers have since taken on the long, picturesque journey.

Check out this Tesla Model Y’s journey to the Mt. Everest base camp in the video below.

Continue Reading

Trending