Electric Cars are Toys for the Rich

Posted by PITHOCRATES - April 22nd, 2014

Week in Review

It turns out that the majority of electric car owners share something in common.  They’re rich (see Electric-Car Buyers Younger And Richer Than Hybrid Owners by Jim Gorzelany posted 4/22/2014 on Forbes).

Based on calendar-year 2013 sales, the study found that 55 percent of electric vehicle buyers are between 36 and 55 years old and have an average household income of $175,000 or more. By comparison, 45 percent of those driving hybrid-powered models off the lot are 56 years old or older (compared to just 26 percent of new EV owners), with only 12 percent having an annual income of $175,000 or higher.

So electric cars are toys for rich people.  Why?  Because working-class people can’t afford to throw money away.

This would more or less reinforce the popular wisdom that hybrids, which typically cost only nominally more than comparable conventionally powered models, appeal more to family minded penny-pinchers than do the pricier EVs, which pack more in the way of high-tech luster and are often purchased as rolling status symbols (they also require a certain infrastructure – i.e. a garage with an updated electrical system for charging – and because of their limited range are usually the second or third car in a family’s fleet)…

… buyers of both EVs and hybrids tend to reside in more affluent zipcodes than typical consumers, with most green-car buyers clustered in hip cities along the west coast.

A gasoline-powered car is utilitarian.  It’ll get you to and from work.  Day or night.  Rain or shine.  Hot or cold.  If you need heat, headlights, windshield wipers and an extra hour to get home because of slow rush-hour traffic the gasoline-powered car gives you these things.  Unlike an electric car.  Because all of these things drain the battery.  Making getting home in night, rain and cold a risky proposition.  Especially if you get stuck in rush-hour traffic.  Which is why electric cars are “usually the second or third car in a family’s fleet.”  And who can afford having 2-3 cars in a family?  People earning more than $175,000 a year.  People who take their electric car out for nice, short afternoon drives.  Then get into old reliable (gasoline-powered car 1 and/or 2 in the family’s fleet) when they really need to get somewhere.

But even having two other cars can’t do anything about the weather.  For rich people in Minnesota are probably not driving their electric car to work in a February blizzard.  Which is why the most popular places to own and drive an electric car are on the west coast.  Where it rarely is winter.  So the rich may take the electric car out of the stable for a pleasant afternoon drive.  But working class people who have to deal with night, rain and cold on a daily basis will be driving to work as they always have.  In their gasoline-powered car.  For after a hard day’s work there is nothing better than going home.  Which is why they drive gasoline-powered cars.  Because they will always get you home.

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The more Electric Cars people drive the greater the Stress on the Electric Grid

Posted by PITHOCRATES - April 16th, 2014

Week in Review

Have you ever noticed your lights dim when your air conditioner starts?  They do because when an electric motor starts there is a momentary short circuit across the windings.  Causing a great inrush of current as they start rotating.  Once they are rotating that inrush of current drops.  During that surge in current the voltage drops.  Because there is no resistance in a short circuit.  So there is no voltage across a short circuit.  And because everything in your house goes back to your electrical panel that momentary voltage drop affects everything in your house.  Including your lights.  The lower voltage reduces the lighting output.  Momentarily.  Once the air conditioning motor begins to rotate the short circuit goes away and the voltage returns to normal.

Air conditioners draw a lot of power.  And during hot summer days when everyone gets home from work they cause the occasional brownout.  As everybody turns on their air conditioners in the evening.  Stressing the electric grid.  Which is why our power bills rise in the summer months.  For this great rise in demand causes a corresponding rise in supply.  Costing the power companies more to meet that demand.  Which they pass on to us (see Electricity Price Surged to All-Time Record for March by Terence P. Jeffrey posted 4/16/2014 on cnsnews).

The average price for a kilowatthour (KWH) of electricity hit a March record of 13.5 cents, according data released yesterday by the Bureau of Labor Statistics. That was up about 5.5 percent from 12.8 cents per KWH in March 2013.

The price of electricity in the United States tends to rise in spring, peak in summer, and decline in fall. Last year, after the price of a KWH averaged 12.8 cents in March, it rose to an all-time high of 13.7 cents in June, July, August and September.

If the prevailing trend holds, the average price of a KWH would hit a new record this summer.

All-electric cars are more popular in California than in Minnesota.  Because there is little cold and snow in California.  And batteries don’t work so well in the cold.  AAA makes a lot of money jumping dead batteries during cold winter months.  So batteries don’t hold their charge as well in the winter.  Which is when an all-electric car requires more charge.  For the days are shorter.  Meaning that at least part of your daily commute will be in the dark and require headlights.  It is colder.  Requiring electric power for heating.  Windows fog and frost up.  Requiring electric power for defogging and defrosting.  It snows.  Requiring electric power to run windshield wipers.  Slippery roads slow traffic to a crawl.  Increasing the time spent with all of these things running during your commute.  So the all-electric car is more of a warm-weather car.  Where people who don’t live in sunny California may park their all-electric car during the worst of the winter months.  And use a gasoline-powered car instead.

As those on the left want everyone to drive all-electric cars they don’t say much about the stress that will add to the electric grid.  If everyone switched to an electric car in the summer it would be like adding a second air conditioner at every house.  Especially after work.  When everyone gets home and plugs in.  Causing an inrush of current for an hour or so as those discharged batters recharge.  A discharged battery is similar to an electric motor.  As it’s the current flow that recharges the battery cells.  There’s a high current at first.  Which falls as the battery charges.  So summer evenings will have a lot of brownouts during the summer months.  As the added electric load will greatly stress the electric grid during the evenings.  A demand that the power companies will have to supply.  At the same time they’re replacing coal-fired power plants with less reliable renewable forms of power generation.  Such as solar farms.  Which will be fast running out of sunshine as these cars plug in.

If people switch from gasoline to electric power in their cars en masse the average price for a kilowatt-hour will soar.  It’s simple economics.  Supply and demand.  The greater the demand the higher the price.  And there is little economies of scale in power production.  Because more power requires more fuel.  And the kicker is that even people who don’t drive will have to pay more on their electric bills when people switch from gasoline to electric cars.  And their gas bills if gas-fired turbines provide that peak power demand.  Raising the price of natural gas.  Making everyone pay more.  Whereas only drivers of gasoline-powered cars are impacted by the high cost of gasoline.

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Hot and Cold Weather reduce Range of Electric Cars

Posted by PITHOCRATES - March 22nd, 2014

Week in Review

AAA makes a lot of money during cold winters.  Because when the temperatures plummet a lot of batteries won’t start their cars.  A low cost service call for AAA.  For all it requires is about 5 minutes of time on site and a pair of jumper cables.  Connect the cables to the dead battery.  Give the AAA vehicle a little gas to increase alternator output and the car with the dead battery will start up like it’s a summer’s day.  And as soon as it does the driver can drive home.  She doesn’t have to wait for the battery to charge.  For it will trickle charge on the drive home.  While the car’s alternator will provide all the electric power needed to run the defroster blower on the windshield, the electric defroster on the rear window, the headlights, the turn signals, the stop lights, the radio, whatever.  Once the car starts gasoline will do the rest by providing the rotational motion that spins the alternator.  None of this could happen, though, with an all-electric car (see Electric car range fluctuates in extreme weather, reports AAA by Richard Read posted 3/21/2014 on The Christian Science Monitor).

We’ve known for some time that battery range in electric vehicles can fluctuate in response to temperature. However, studies and simulations have produced varying estimates of how much range owners can expect to lose…

To carry out its tests, AAA used a 2014 Ford Focus Electric Vehicle, a 2012 Mitsubishi iMIEV, and a 2013 Nissan Leaf…

When tested at the moderate temperature of 75 degrees Fahrenheit, AAA says the three vehicles averaged 105 miles per charge. After the thermostat was cranked up to 95 degrees, however, that range plummeted to just 69 miles.

The batteries performed even worse in cold weather. When the vehicles were tested at 20 degrees Fahrenheit, they averaged just 43 miles — a 57 percent reduction in range.

Imagine yourself driving home in a February blizzard after work.  With a 30 minute drive home on the expressway.  Which is crawling along at a slow speed due to the bad weather.  Your normal 30 minute drive home turns into an hour.  As you inch along in heavy traffic.  With your wipers running.  Your heat on.  Your headlights on.  Your windshield defroster blower running.  Your rear window defroster on.  And your stop lights blinking on and off as you ride your brake in stop and go traffic.  All of these things just sucking the charge out of your battery.  Imagine all of that and tell me which kind of car would you rather be in.  An all-electric car that has only 43 miles of charge in it?  Or a gasoline-powered car that can sit in that traffic for 3 hours (or longer) before getting you home with everything running while keeping you toasty warm inside?

If you don’t want to wait for a tow truck standing next to your all-electric car in that blizzard to tow you home after it runs out of charge in that stop and go traffic I’m guessing you’ll probably choose the gasoline-powered car.  Which is why few people are buying these all-electric cars.  People don’t want a car that can only be driven in nice weather when there is little traffic on the road to slow your way home.  That’s why they choose gasoline-powered cars.  Because it will drive in anything and will always get you home as long as there is gasoline in the tank.

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Car Companies making more Electric Cars that people will not Buy

Posted by PITHOCRATES - March 9th, 2014

Week in Review

Auto makers are caving in to green paranoia.  Fooling themselves that electric cars are worth the investment (see Geneva Motor Show: Electric cars no longer the exception? by Theo Leggett posted 3/6/2014 on BBC News Business).

The Porsche Panamera S is quite a car. Sleek, powerful and aerodynamic, it’s capable of 167mph.

But that’s not all. The version on display here in Geneva is also able to travel for about 20 miles on nothing but battery power.

It is, of course, a hybrid. It has an electric motor sitting alongside a 3-litre petrol engine. It is fast, powerful and remarkably economical. Porsche claims it can drive for 91 miles on a single gallon of petrol.

Wow.  A whole 20 miles on battery.  A Ford Taurus with a full tank of gas will take you 522 miles on the expressway.  With heat or air conditioning.  In snow or rain.  Night or day.  That’s what the internal combustion engine gives you.  The ability to get into your car and drive.  Whenever.  Without worrying if you have enough charge in the battery.  Or whether you can risk running the heat or use the headlights when you’re running low on charge.   All you need is gasoline.  And when you’re low on gasoline you just have to spend about 10 minutes or so at a convenient gas station to refill your tank.  Something no battery can do.  For the fastest chargers (i.e., the highest voltage chargers) still require more than a half hour for a useful charge.

Now, under pressure from regulators around the world, carmakers have been working hard to reduce emissions and fuel consumption. So hybrids have become decidedly mainstream…

“There’s no doubt in our mind that it’s coming and it’s coming quickly and there is legislation supporting this in many cities.

“You can drive into London and pay zero congestion charge, for example. There are taxation incentives in the UK, but also in the US and Asia as well…

“We know our customers now,” he says, “and we remain totally convinced that electric cars have a strong, strong place in the market…”

Yet although sales of electric vehicles are growing rapidly, they remain a tiny fraction of the global total. For the moment, the internal combustion engine remains king.

The only thing causing electric cars to become mainstream is the coercion of government.  Legislation.  The only way you can make an electric car more attractive than a gasoline-powered car.  Also, just to get people to buy electric cars requires massive government subsidies.  No.  Hamburgers, fries and Coke are mainstream.  Because you don’t have to subsidize them or coerce people to buy them.  In fact they are so mainstream that some in government use legislation to try and stop people from buying them.

The internal combustion engine is king and will remain king until you can drive an electric car as carefree as a gasoline-powered car.  Until the electric car makers can give us the range and the ability to use our heaters and lights without sweating profusely as we sit in gridlock during a blizzard worrying whether we’ll ever make it home people just aren’t going to buy an electric car.  Because people want to know they will make it home safely.  And right now nothing does that better than the internal combustion engine.

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There will be Carbon Emission whether we Power our Cars from Poo or Gasoline

Posted by PITHOCRATES - March 2nd, 2014

Week in Review

Hydrogen is very flammable.  It’s why we use helium in our blimps.  Because using hydrogen is just too dangerous.  As the Hindenburg disaster has shown us.

So hydrogen is a pretty dangerous thing to be messing with.  Unlike gasoline.  Which is pretty safe and stable in the liquid form.  You could even put out a cigarette in a puddle of gasoline.  It’s dangerous doing so.  And you shouldn’t try it.  But the most dangerous thing about gasoline is its vapor.  Ignite that and there will be an explosion.  Which is what happens inside our internal combustion engines.  Where our cars first aerosolizes the gasoline, mixes it with air, compresses it and then ignites it.  Of course that explosion is deep within our engines.  Where it can’t harm us.  Still, it isn’t advised to smoke while refueling.  Because there are gas vapors typically where there is gas.  And you don’t want you car exploding like the Hindenburg.

Fuel cells use hydrogen to make electric power.  All you have to do is stop at your hydrogen fueling station and fill up your hydrogen tanks.  Just don’t smoke while doing this.  Because hydrogen in its natural state is an explosive gas.  This danger aside the hydrogen fuel cell is about to give the all-electric car a run for its money.  And last’s night meal may be providing the hydrogen (see POO-power comes to California: Orange County residents to trial SUVs fuelled by human waste by Mark Prigg posted 2/25/2014 on the Daily Mail).

The fuel-cell powered Tucson can drive for 50 miles per kilogram of hydrogen, and its two tanks hold about 5.64 kilograms (12.4 pounds).

Costs of compressed gas in California range from about $5 to $10 per kilogram, depending on the facility, and it takes around three minutes to fill the tank.

Hyundai says it hopes the technology will become popular – and will take on the electric car as the eco-vehicle of choice.

‘Hydrogen-powered fuel cell electric vehicles represent the next generation of zero-emission vehicle technology, so we’re thrilled to be a leader in offering the mass-produced, federally certified Tucson Fuel Cell to retail customers,’ said John Krafcik of Hyundai Motor America.

‘The superior range and fast-fill refueling speed of our Tucson Fuel Cell vehicle contrast with the lower range and slow-charge characteristics of competing battery electric vehicles.

‘We think fuel cell technology will increase the adoption rate of zero-emission vehicles, and we’ll all share the environmental benefits.’

If you crunch the numbers and compare it to a gasoline-powered Ford Taurus the numbers aren’t so good.  A Ford Taurus gets 29 miles per gallon on the highway.  And has an 18 gallon gas tank.  Which means one tank of gas will take you 522 miles on the highway.  At $3 per gallon for gas that one tank of gas will cost you $54.  By comparison the fuel cell gives you only 282 miles on a full tank.  And costs between $28.20 and $56.40 for a full tank.  Dividing cost per mile that comes to somewhere between $0.10 and $0.20 per mile.  While the gasoline-powered Ford Taurus costs about $0.10 per mile.

So at best the fuel cell will have a fuel cost equal to the gasoline-powered engine.  But it only has about 54% the range on a full tank.  Meaning you’ll have to stop about twice as often to fuel up with the fuel cell.  And good luck not blowing yourself up playing with hydrogen at the fuel pump.  That is if you can even find hydrogen fueling stations along your drive.  The only real good thing you can say about a fuel cell when comparing it to a gasoline-powered car is at least it’s not as bad as an all-electric car.  And those zero-emissions?  Sorry, that’s not exactly true.  The hydrogen may be zero-emissions but making the hydrogen isn’t.

First, sewage is separated into water and biosolids.

The waste water is cleaned, filtered and treated for reuse, while solid waste is piped into airless tanks filled with microbes.

A byproduct of their digestion is a gas that’s 60 percent methane and about 40 percent carbon dioxide, which is burned at the plant for power generation.

However, some is filtered and piped into a unique, stationary ‘tri-generation’ fuel-cell device, designed by the Irvine team, that produces electricity, heat and hydrogen.

The hydrogen gas is then piped several hundred feet to the public pump where fuel-cell autos are refueled daily.

Almost half of the source gas is carbon dioxide.  And carbon dioxide has carbon in it.  This is the same gas they want to shut down coal-fired power plants for producing.  Oh, and methane?  That’s a greenhouse gas.  This is the gas coming out of the butts of cows and pigs that some are saying are warming the planet.  And when you burn methane guess what you get?  Water and carbon dioxide.  More manmade carbon emissions.  That’s a lot of global warming they’re creating in the effort to prevent global warming.

This is one thing fuel cells share with all-electric cars.  They may be emission free.  But the chemistry to make them emission-free isn’t.  We’re still putting carbon into the atmosphere.  We’re just doing it in different places.  And if we are wouldn’t it be cheaper and easier just to keep using gasoline?

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The Ford Model T is probably a Safer Choice for a Cross-Country Trip than an All-Electric Car

Posted by PITHOCRATES - February 16th, 2014

Week in Review

The United States is no doubt tired of winter.  It’s been a long one.  Snow, ice and cold.  Especially cold.  With below-zero temperatures in northern states.  And freezing temperatures even in southern states.  In fact, it’s been such a brutal winter that every state in the United States but one has snow.  Florida.  It’s just been a long, cold winter.  But it’s been a good one for those in the snow removal business.  And for those in providing a jump-start for dead batteries.  For batteries just don’t like cold weather.  Which is another problem with all-electric cars.  In addition to finding a place and the time to charge them (see Tesla Model S Electric Car Versus … Ford Model T? A History Lesson by John Voelcker posted 2/14/2014 on Yahoo! Autos).

While the fast-expanding network of Tesla Supercharger DC quick-charging stations now permits both coast-to-coast and New York-to-Florida road trips by electric car, the magazine conducted its test last October…

And as it points out, in its area of the country (Ann Arbor, Michigan), there were no Supercharger stations last fall.

(There is now one, along I-94 in St. Joseph, Michigan, 26 miles north of the I-90 cross-country corridor–one of 76 operating U.S. Supercharger locations as of today.)

So it couched its Tesla-vs-Model T test as the equivalent, a century later, to the question it imagined potential buyers of the first automobiles may have pondered: How does this stack up against my old, familiar, predictable horse..?

In due course, small roadside businesses sprang up to sell gasoline for the newfangled contraptions, usually in the same place they could be repaired.

But travelers couldn’t be confident of finding gasoline until well into the 1920s, a result of the Model T turning the U.S. into a car-based nation almost by itself.

Imagine driving across a state the size of Michigan on a road trip.  From St. Joseph to Detroit on the other side of the state it’s about 200 miles.  Which it will take you over 3 hours to drive at posted speed limits.  Now imagine driving this with only one gas station to stop at.  One you’re not familiar with.  One that you will have to drive around a little to find.  While you’re running out of energy.  Now imagine you’re in an all-electric car.  And you find this one charging station and there are 4 cars ahead of you waiting for their 30-minute quick charge.  Which could increase your charging time from one half hour to two and a half hours.

Every gas station has electric power.  So every gas station could sell electricity for electric cars, too.  If someone had to wait a half hour to charge their car that is a lot of time they could be buying stuff from the mini mart all these gas stations have.  So why aren’t they building these things?  Is it that they don’t want the liability that might come from a faulty charger starting a battery fire?  Is it because there are so few all-electric cars to waste the investment on?  Is there a question of how to charge for electricity?  Or do they not want to turn their gas stations into parking lots with a bunch of cars waiting for their half hour of charge time?

Perhaps the reason Michigan only has one Supercharger station is because Michigan has long, cold winters.  Limiting electric car traveling to the summer months.  In fact, if you live in a northern state look for the charging stations some big stores have installed to show how green they are.  Chances are you won’t see a single car at them during the winter.  For when it comes to cold winters gasoline has it all over batteries.  Gasoline provides far greater range.  You can jump-start a gasoline engine in the coldest of winters and then drive home.  And if it’s cold you can crank the heat up to make it feel like summer inside that car.  Something you can’t do in an electric car without sacrificing further range.

The Model T was an improvement over the horse.  But the electric car is just not an improvement over the Model T.  Because a gasoline-powered car is superior to an all-electric car.  For if one was going to travel across a state the Model T would have better odds of getting you where you were going before running out of energy.  And even if you ran out of gas someone could bring a can of gasoline to you so you could drive to the next gas station.  Whereas an electric car would require a tow truck to the next charging station.

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Girl sits on Phone in Back Pocket and starts Fire just as Damaged Batteries start Fires in Electric Cars

Posted by PITHOCRATES - February 2nd, 2014

Week in Review

Lithium-ion batteries are a wonder.  But they can be temperamental.  Which you can expect when you put highly reactive chemicals together.  Which is the price of higher energy storage densities.  Danger.  To make that charge last longer in the batteries powering our electronic devices.  And they can only do that by a chemical reaction that produces heat.  Boeing had a problem with their lithium-ion batteries that nearly caught a couple of their new Dreamliners on fire.  Resulting in an FAA grounding of the entire fleet until they found a way to make their batteries safer.  But it’s not just big lithium-ion batteries that can burst into flames (see iPhone catches fire, teen girl burned by Chris Matyszczyk posted 2/1/2014 on CNET).

An eighth-grader in Maine is sitting in class when she hears a pop. Then she notices smoke coming from her back pocket…

The culprit is said to have been her iPhone. Images suggest it had caught fire…

The division chief of the local emergency medical services, Andrew Palmeri, told Seacoast Online that the phone’s battery had “shorted out.” He suggested that the phone had been crushed in the teen’s back pocket. Local fire services are investigating…

Cell phones of whatever brand do catch fire. iPhones have caught fire on planes, just as Droids have exploded in ears.

So lithium-ion batteries can be dangerous.  Despite being the wonders they are.  For these chemical reactions are powerful.  And need to be confined perfectly.  But if you sit on a cell phone you can damage the confinement of those chemicals.  Causing a fire.  Just as accidents in electric cars have resulted in battery fires that have totaled these cars.  Or a faulty charging circuit started a fire overnight while charging in an attached garage.  Starting the house on fire.  Or nearly started a plane on fire.

The greatest hindrance to electric car sales is a thing called range anxiety.  Will I have enough charge to get home?  The answer to this problem is, of course, increasing the charge available in these cars.  Typically with bigger and more powerful batteries.  Which can burn the car to a crisp after an accident damages the battery.  Or debris on the roadway is thrown up by a tire into the battery.  Things that won’t total a gasoline-powered car if they happen.  Because gas is a high-density energy source.  Like these lithium-ion batters.  But it takes a lot more abuse to the gas tank to get it to start a fire.  Which is why electric cars will not replace the gasoline-powered car.  As they provide a far greater range and are safer.  And until the electric car can out do the gasoline-powered car on these two points the electric car will remain a novelty.

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Tesla has made it Possible to drive Cross-Country in an Electric Car

Posted by PITHOCRATES - February 1st, 2014

Week in Review

Tesla has installed charging stations across the country.  You can now drive from Los Angeles to New York City.  As long as you want to take the scenic route and are in no hurry (see Tesla’s 800-mile cross-country detour by Chris Isidore posted 1/30/2014 on CNN Money).

Tesla owners can now drive across the country using the company’s network of charging stations to power their batteries — as long as they don’t mind going about 800 miles out of their way…

Tesla says the route…is…3,400 miles long…

The superchargers provide enough juice in 30 minutes to take a Tesla about 170 miles. There are 32 stations on the route between downtown Los Angeles and New York City, and more than 40 others mostly up and down both coasts.

The Model S, which starts at about $69,000, needs to be charged every 244 to 306 miles, depending on the battery size.

Sounds good.  But for those of us comfortable with ease of traveling with gasoline will not experience that same ease driving from one charging station to another.  Let’s look at this by first looking at a full-size sedan powered by a gasoline-engine.  Like a Ford Taurus.  They can get about 29 miles per gallon on the highway and have an 18 gallon gas tank.  Crunching the numbers for that 3,400 mile trip it will take about 117 gallons of gasoline (3,400/29).  With an 18 gallon gas tank it will take 7 fueling stops to complete the trip (117/18).  Assuming 5 minutes to refuel and another 10 minutes for incidentals (pulling in, pulling out, paying at the pump, waiting for a fuel pump to become available, etc.) that’s 105 minutes (7 X 15).  Or 1.75 hours (105/60).  Adding just under 2 hours to the trip for fueling.

For 32 charging stations to cover that 3,400 miles means they are on average 106.25 miles apart.  So a half-hour quick charge will take you to the next charging station with 170 miles of charge available on your battery.  Assuming 30 minutes to charge and another 15 minutes for incidentals (pulling in, pulling out, waiting for another car to complete their 30 minute charge, etc.) that’s 1,440 minutes (32 X 45).  Or 24 hours (1,440/60).  Adding 24 hours to the trip for charging.  Or a full day.  Or 2 days if you only drive 12 hours a day.  Or 3 days if you only drive 8 hours a day.

Now imagine a world where everyone is driving electric cars.  And there are three cars ahead of you at the charging station waiting for a charge.  Adding an hour and half waiting time in addition to your 45 minute charging stop.  If it was like this at every charging station and you drove 12 hours a day that would add 6 days of traveling to that trip.  Whereas the odds are less likely that you will have to wait for 3 cars ahead of you at a gas station.  Because there are so many more gas stations to go to.

Driving cross-country in an electric car could add 6 days to a 4-day trip.  Making the electric car a novelty at best.  Unless your vacation is all about getting there.  And not about being there.  Where you drive there, turn around and return home.  Because you have no time to spend there due to the time it took to get there.  You could do that.  Or drive a gasoline-powered car.  And do more than just drive on your vacation.

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California offers Tax Breaks to help sell $70,000 Tesla Model S

Posted by PITHOCRATES - December 22nd, 2013

Week in Review

Electric cars aren’t selling anywhere near enough to make them a profitable business.  Because they just won’t do for you what gasoline will do for you.  Let you carry lots of stuff over great distances.  Because the electric car is so less of a car as a gasoline-powered car governments bribe manufacturers to build them.  And people to buy them.  Just so rich people can have these toys (see California Is Giving Tesla Another Huge Tax Break. Good Move. by Will Oremus posted 12/19/2013 on Slate).

This is going to drive the Tesla-haters crazy. The luxury electric-car maker is getting a huge new tax break from California, SFGate reports. The state will let it off the hook for sales and use taxes on some $415 million in new equipment it’s purchasing in order to expand production of the Model S at its Bay Area factory. That amounts to a $34.7 million tax break to produce more of a vehicle whose sticker price starts above $70,000…

So, in fact, it isn’t Tesla per se that’s getting special treatment from the state. It’s the clean-tech industry in general, which California is very keen to promote…

More broadly, whatever sense a tax on the purchase of manufacturing equipment might once have made for California, it’s patently counterproductive in the context of clean-tech startups in the 21st century. Add to that some of the highest income and sales taxes in the nation, and it’s no wonder California is worried about companies like Tesla picking up stakes and heading elsewhere. Businessweek notes that new manufacturing jobs in the state have risen less than 1 percent since 2010, compared with nearly 5 percent nationally. Gov. Jerry Brown has been chipping away at the tax already, and Tesla is just the latest example.

Nor is the deal likely to burden the state’s taxpayers. Tesla’s Model S is in huge demand, and the company has been scrambling since its launch to ramp up production.

No.  The Model S is not in huge demand.  Demand may be up for the car.  But if the demand was ‘huge’ like every other popular car that sold well you wouldn’t need subsidies or tax breaks to build and sell them.  For cars in high demand are often the cars with the greatest profit in their selling price.  Because people want them so much that they are willing to pay these higher prices.  SUVs and pickup trucks were these kinds of vehicles.  And before gas prices spiked they were the lifeblood of manufacturers.  Because people paid more for these than they would for the sedans at the time.  Which is when the imports took over that segment.

People like SUVs and pickup trucks because they are big.  They carry a lot of people.  And a lot of stuff.  Even pull campers and boats.  The ideal vehicle for the family vacation.  Something the electric car just sucks at.  For any extra weight just sucks away charge time.  Limiting your range.  Which takes all the fun out of going on vacation.  And makes it a little scary.  For there is nothing worse than having a car that doesn’t move anymore in a strange place far from home.

But if you’re still convinced that tax breaks to big manufacturers are unfair and wrong, you might want to train your ire on a state a little further north, which just offered an all-time record $8.7 billion in tax breaks to a company that manufactures perhaps the least-green transportation technology of all. The worst part: Boeing might just move out anyway.

There is a bit of a difference between Tesla and Boeing.  Boeing employs a great many more people than Tesla.  And they’re all union workers ‘further north’.  Hence part of the reason for the tax breaks.  To help them compete with their high labor costs against the heavily subsidized Airbus.  Also, Boeing leads U.S. exports.  And is about the biggest component in U.S. GDP figures.  So while tax breaks and subsidies are abhorrent at least Boeing gives us something for theirs.  Unlike clean-tech industries.  That receive huge government subsidies and tax breaks.  Only to go bankrupt (Solyndra, Fisker, etc.) a short time later.  Tesla is the exception to the rule.  Because its founder, Elon Musk, is a billionaire who spends his own money.  A lot of it.  Unlike the other failed clean-tech start-ups.

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A Diesel Car is a better value than an Electric Car

Posted by PITHOCRATES - December 22nd, 2013

Week in Review

People aren’t buying electric cars.  Because they are too expensive.  And because of their limited range.  Governments (federal and states) are trying to encourage people to buy cars they don’t want by offering subsidies to both manufacturers and buyers.  Which is getting some people to buy these cars.  But not many.  For even with those subsidies they’re still expensive.  And still have limited range.  Unlike these alternative cars (see These Diesels From Audi, BMW and Mercedes Cost Less To Own Than Your Gas-Powered Luxury Car by Hannah Elliott posted 12/19/2013 on Forbes).

Automakers have long lamented the American public’s reticence to embrace diesel technology as wholeheartedly as have Europeans…

But those who have adopted diesel love it. Audi head Scott Keogh routinely tells me his company sells out of each TDI model they make; Detlev von Platen at Porsche  told me at the LA auto showst month that diesel technology will continue to play an “increasingly significant” role for its fleet, especially the best-selling Panamera.

The truth is that while there is a price premium (roughly $5,300 on average) associated with the initial purchase cost of diesel vehicles, they typically get 30% better gas mileage and flaunt superior torque numbers and reliability ratings. The automotive analysis firm Vincentric estimates that driving a diesel car will save $2,117 in fuel costs over one year assuming annual rate of 15,000 miles.

Note the one thing conspicuous by its absence.  The word ‘subsidies’.  For people will pay a premium for a diesel.  Because there is value in a diesel.  They have superior torque.  Giving them greater pulling force than comparable sized gasoline-powered cars.  Better reliability.  And best of all they get a 30% better fuel mileage.  Which gives them greater range than a gasoline-powered care with a comparable sized fuel tank.  Giving them a greater range between fuel-ups than with a gasoline car.  And a far, far, far, far, far greater range than an electric car.  Giving the diesel an excellent value for the money.  Something you don’t have to bribe people to buy with subsidies.

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