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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

6 years ago

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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.

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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.

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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.

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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.

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Lifestyle

Tesla brings perhaps the coolest interior feature to cars in latest update

Tesla adds on to the “fun” aspect of its vehicles.

Published

2 weeks ago

on

July 30, 2025

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Credit: Tesla

Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.

The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.

Tesla Model Y’s ambient lighting design changes revealed in leaked video

With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:

To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”

Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.

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Elon Musk

xAI, Musk Foundation helps schools near Memphis supercomputer site

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

Published

2 weeks ago

on

July 26, 2025

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xAI-supercomputer-memphis-environment-pushback
(Credit: xAI)

Elon Musk’s artificial intelligence startup xAI and the Musk Foundation have been supporting Memphis-Shelby County Schools with HVAC repairs and facility upgrades, while also funding youth programs for students in the area. 

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

xAI’s school visits lead to facility repairs

Representatives from xAI visited John P. Freeman Optional School, Fairley High School, and Westwood High School, all of which are located near its Colossus supercomputer site, to assess HVAC systems, plumbing, gym facilities, and athletic fields. The visits resulted in a list of priority repairs, some of which were completed in April and May.

In addition to the repairs, xAI also shared a number of initiatives that are planned for students in the area, as stated in a Commercial Appeal report.

“xAI is working on providing STEM workshops for local students, donating equipment to technical training programs, and supporting job fairs to boost employment opportunities. These initiatives reflect xAl’s commitment to fostering education and economic growth in Memphis,” xAI noted in a statement.

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Musk Foundation donation

Apart from xAI, the Musk Foundation also donated $350,000 to the Boys & Girls Clubs of Greater Memphis, enabling the reopening of two club sites located at Booker T. Washington High School and Westwood High School. Both locations had closed earlier this year due to lapses in funding. As per xAI, the Musk Foundation’s donation allows clubs to reopen for almost 1,000 students. 

The donation will fund staffing, supplies, and transportation, among others. “Kids are the future of humanity,” Elon Musk said in a statement, adding that students need “every chance to shoot for the stars.”

“We’re honored to support the Boys & Girls Clubs of Greater Memphis in reopening these sites, giving kids in underserved communities the tools to build brighter futures,” Musk said.

The gift was praised by local officials, including Boys & Girls Clubs board chair Michael Garriga, who stated that the “commitment will ensure the youth of our community have the opportunities they need to develop their skills and talents to become successful students and future citizens.”

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Lifestyle

EV fans urge Tesla to acquire Unplugged Performance for edge in fleet and security industry

Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles.

Published

1 month ago

on

July 12, 2025

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Credit: Unplugged Performance

A growing number of Tesla enthusiasts and longtime community voices are calling on the electric vehicle maker to acquire Unplugged Performance, a California-based aftermarket company best known for tuning Tesla vehicles and developing specialized government fleet solutions under its UP.FIT division.

The idea was once considered a niche proposal among EV fans, but it is now gaining serious attention not just as a performance play but as a strategic move to deepen Tesla’s roots in the fleet and security industry. 

A strategic fit

Unplugged Performance has built a name for itself by producing performance upgrades for Tesla vehicles, from track-optimized components to visual and aerodynamic upgrades. But in recent years, its UP.FIT division has pivoted toward a more functional future by outfitting Tesla vehicles like Model Ys for police, military, and government use.

That work has sparked growing calls for closer collaboration with Tesla, especially as the EV maker increasingly leans into autonomy, AI, and fleet services as core components of its next chapter.

“I posted this four years ago, but I think it’s more true now than ever,” wrote Whole Mars Catalog, a well-known Tesla investor and FSD Beta tester, on X. “Tesla should buy Unplugged. But not just as a Performance division. What they are doing with UP.FIT unlocks large government and commercial fleet purchases that can improve utilization.”

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Tesla fans such as shareholder Sawyer Merritt echoed the sentiment, calling Unplugged a “great fit within Tesla.” adding, “They are literally located directly next to Tesla’s design studio in Hawthorne.”

Enabling the next wave

Supporters of the idea noted that integrating Unplugged into Tesla’s corporate structure could help accelerate the adoption of autonomous technologies in government sectors. With UP.FIT patrol cars already in use across some U.S. police departments, Tesla fans envisioned a future where self-driving Teslas could potentially revolutionize law enforcement, search-and-rescue, and public service logistics.

“Just imagine how autonomous patrol cars could transform policing and bring us into a safer future,” the veteran FSD tester wrote.

The benefits could also extend to Tesla’s existing consumer base. “They also have some incredible products in the works that I think will appeal to many ordinary Tesla drivers — not just those looking for performance or mods. Stuff that’s so good it should have come straight from the design studio next door,” Whole Mars Catalog noted.

Unplugged Performance, founded in 2013, shares not just a product vision with Tesla, but also geography. Its Hawthorne headquarters sits directly adjacent to Tesla’s design studio, and the two companies have maintained a close working relationship over the years. The aftermarket firm has long positioned itself as a “mission-aligned” partner to Tesla.

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In response to the recent calls for acquisition, Unplugged Performance acknowledged the support from the community. “Our very existence is to support the Tesla mission with @UpfitTesla and @UnpluggedTesla,” Unplugged CEO Ben Schaffer posted on X. “We love working with Tesla and are grateful for the community’s support since 2013!”

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