The launch of the Tesla Model Y Standard feels like a tipping point for electric vehicles. The Standard marks Tesla's final evolution from a company at the vanguard of the EV revolution to a manufacturer of mainstream automobiles, building to a price to sell at scale. Not even the industry unicorn is immune to the pressures of a febrile EV market. It’s quite a change. Back in 2012, I attended the launch of the original Model S in Fremont, California. The performance and technology felt like a step into another world. The original Model 3 brought similar qualities to the mainstream market in 2018. These cars were the iPhone of the automotive world. The Model Y Standard, which I tested last week in Texas, is different. Cost-cutting has done to death many of Tesla's signatures. Gone is the panoramic glass roof. Gone is the instant surge of acceleration and rapid steering response. Gone is the nicely appointed front trunk. Gone, too, is the fabled Autopilot system that allowed the car to steer itself; autonomy now costs $99 a month and is called Full Self-Driving. The list goes on. None of these changes make the Model Y Standard a poor choice. It remains a spacious, versatile and appealing family car with a decent turn of pace and a useful range. Likewise, the new Model 3 Standard, which has had less surgery than the Y, is an appealing sedan. But the Y, in particular, marks a significant shift in approach. That Tesla has felt the need to go to such extraordinary lengths to reduce the entry-level price by a modest $5,000 is a reflection of a new paradigm. With the loss of the $7,500 EV tax credit in the U.S., electric cars must compete directly on price with their gas alternatives. EVs are also no longer as cutting-edge as they once were. The technology has been democratized — over-the-air software updates, for example, are now commonplace on gas-powered cars. Hybridization has closed the performance gap. Today’s EVs are an alternative power source instead of an alternative car. The Model Y competes directly on price and capability with the Honda CR-V and the soon-to-be-updated Toyota RAV4. And it’s not just Tesla. The new Chevrolet Bolt and Nissan Leaf are much-needed, cheaper EVs that offer similar qualities to their gas-powered siblings. The $35K Chevy Equinox EV even has a plastic steering wheel. It’s a challenging backdrop, but electric cars continue to have significant advantages. Ditching the engine has packaging advantages — more passenger space for less road space; running costs are cheaper; and maintenance is reduced. Then, there are the environmental advantages, which continue to matter, at least to some consumers. The game has changed, and the road to mass EV adoption in the U.S. is harder than ever. Even Tesla is not immune — the launch of the Model Y Standard is proof of that. https://lnkd.in/gri5Sj3A
Tesla's Model Y Standard: A Mainstream EV
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