The Acquisition Decision - Part 1

MS-103a

This course is presented as part of Evannex Universitya free, open learning environment that presents concise, video-based mini-courses for those who have interest in electric vehicles (EVs)

AcquisitionBefore you buy, there are qualitative issues youll have to address questions youll need to answer for yourselfThe mechanics of buying a Model S

>> In this EVU mini-course well discuss the acquisition decision for the Model S>> Well begin by considering some of the qualitative issues that must be addressed before the final buy decision is made>> and questions youll have to answer for yourselfAnd once youve decided to pull the trigger, >> well consider the mechanics for making the buy

Why people hesitate IThe pricenot within the reach of the average car buyercannot be justified on savings alonea premium vehicle for a premium vehicle marketNew techbut like most Apple products, Tesla delivers the tech in a non-threatening, elegant manner

Among the many qualitative issues are the fact that:>> The Model S is not an inexpensive car, and to be frank, >> it is often not within the reach of the average car buyer>> and realistically, it cannot be justified on cost savings associated with lower fuel costs alone>> The Model S is a premium vehicle for a premium vehicle market>> although some buyers are drawn to the technology, others hesitate>> but like most Apple products, Tesla delivers the tech in a non-threatening, elegant manner that has won dozens of industry awards

Why people hesitate IIRange anxietyfrankly, overblown for most driversbut a real issue for somerequires more planning for long tripsEverythings changing too quickly early adopter syndromewho will be the winnerBEVs or PHEVs?see EV 103 - 106waitcooler features at a lower price

>>We discussed range anxiety in EVU course EV-202, and if your unfamiliar with the concept, it might be worthwhile to spend a few minutes learning about it. Bottom line,>> concern about range is overblown for most drivers>> but it is a real issue for some>> and it does require more planning for long trips>> Another common concern is that everythings changing too quickly >> people worry about being victims of early adopter syndrome, but the model s is no longer new, with over 100,000 owners and well over a billion miles of on-the-road travel>> theres also the question of who will be the winnerBEVs or PHEVs or something else entirely? Both BEVs and PHEVs represent good tech, but BEVs are simpler, more elegant and move you completely away from gasoline. If youre unfamiliar with these different EV architectures, see our EV 103 - 106 mini-courses>>still others think that waiting is a viable strategycooler features at a lower price will come.Thats probably true, and waiting is a decision that only you can make.

The pricerealistically, for cars exceeding $70K, its an emotional decision, not a financial decisionif cost is your primary concern its not the car for youbut you can save on operational costsThe Model S can deliver supercar performance that can only be found in cars costing 2x or even 3 or more times the amount

>>Realistically, for cars exceeding $70K, its an emotional decision, not a financial decision>>The Model S is an expensive car, and if cost is your primary concern, its probably not the car for you>> Sure you can save significant amounts by using electrons instead of gasoline to power the vehicle and you can also save non-trivial amounts on maintenance (there isnt much maintenance to do)>> Yet, the Model S can deliver supercar performance that can only be found in cars costing 2x or even 3 or more times its cost

New tech the bleeding edge?

This is new technology, but it is proven and far more important, it is simpleThe charging infrastructure has already grown dramatically and is likely to grow much more in the next few yearsA perfect platform for the growing influence of computer-based automotive systems, e.g., proximity sensingautomatic brakinghighway autopilot

If you purchased a Model S in 2012, like I did, you were on the bleeding edge, but today? Not a chance.>>The Model S represents new technology, but today that tech is proven and far more important, it is simple>> The charging infrastructure that enables you to travel long distances on most interstates has already grown dramatically and is likely to grow much more in the next few years>> The Model S is a perfect platform for the growing influence of computer-based automotive systems including >> proximity sensing and blind spot protection>> automatic braking and>> highway autopilot that enables the car to drive itself on interstate highwaysIts a high tech car, for sure, but its still just a car.

RangeYou charge at home, at night and have a full car every morningHow often do you drive 220 miles round trip?Are your typical trips along interstates?See EV 201 and EV202 for a deeper dive into range and range anxiety

Everybody asks about range everybody.But as Ive said many times in various EVU course, its really no big deal.>> You charge at home, at night and have a full car every morning. That is one of the coolest features of the Model S and every other EV.>> As far a long trips, ask yourself: How often do I drive 220 miles round trip? The answer is probably not very often.>> and if your trips are along interstates, superchargers make your range limitless.>> for more information on range and range anxiety, See EV 201 and EV202 for a deeper dive

The pace of change outside your comfort zoneobsolescencetoo techiebattery worries

It not uncommon to hear the following objections, beginning with Ive driven gas cars my entire life and I like them. Theyre a known commodity.>>Some people think EVs are outside their comfort zone. In some cases its a generational thing, with older folks resisting new tech.>>For some, its concern about obsolescence, after all, things are changing so fast.>>For others, a computer on 4 wheels is just too techie>>and for a few, its battery worriesconcern about the safety and longevity of an electric battery.Lets look at each concern briefly.

Well take a look at these issues, along with other acquisition topics in the second part of this EVU mini-course.

a free study guide for all EVU mini-courses is available for download from our website For a complete list of mini-courses and the study guide, visit: www.evannex.com

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