Tesla Model 3, Model X take top spots for EV with highest resale value by KBB

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Posted on January 24, 2019

The Kelley Blue Book (KBB) 2019 Best Resale Value Award Winners are in, and Tesla’s Model 3 has landed at the top of the electric vehicle category with a projected 69.3% resale value after 36 months and 48.7% after 60 months. Its SUV brethren, the Model X, achieved a worthy status of its own, placing 2nd in the same category at 56.7% (36 months) and 34.3% (60 months). While Tesla’s fleet of vehicles are high-value luxury cars, their ability to retain a large portion of their original selling price as used cars is yet another data point driving their desired position in the consumer market.

The recognition given by the long-trusted consumer automotive resource in its announcement of the award spoke highly of the vehicle’s appeal to buyers, something which played a role in its valuation: “The Tesla Model 3 has a cultural magic and desirability about it that made people willing to wait months and even years to own one. People don’t like Tesla Model 3s — they crave them,” noted KBB in a tweet. This sentiment from KBB as a 92-year veteran in car assessments, of course, adds yet another confirmation of something many Tesla owners and reservation holders already assumed to be true.

Thanks to Tesla’s customer-driven design and development process, features such as class-leading range, a vast Supercharging network, over-the-air software updates, great-looking design, and overall technology serving convenient, practical, and entertainment purposes, the company’s two newest vehicles are handily standing out against competitors. In KBB’s overview page detailing the Model 3’s category win, more praise along these lines was offered: “For those who can afford it, the smallest Tesla offers usability, joyful road manners, and an intriguing glimpse of a gasoline-free future.” The vehicle’s 5-star safety rating from the National Highway Traffic and Safety Administration (NHTSA) in every category was also noted as a driving price point in a general overview page about the Model 3.

Tesla’s Model 3 has been won Kelley Blue Book’s 2019 Best Resale Value Award in the Electric Vehicle Category. | Credit: Tesla

The annual KBB Best Resale Value Awards compares a variety of vehicle resale metrics over 36 and 60 month time frames and then sorts them into three categories: Best Brand/Luxury Brand (evaluating makers’ overall portfolio), Overall Top Ten Winners (best resale values in all categories), and Category Winners (24 categories covering every class, shape, and price). According to the KBB website detailing the award, the values are calculated based on several factors including vehicle specification and trim levels, sales data, market data, and segment competition, among others. While the general system is meant to provide a fair comparison, certain numbers are worth considering more broadly for a fuller picture of Tesla’s Model 3 and Model X in the market.

Given the chance to compete in categories that would fit outside of an electric vehicle-only comparison, the Model 3 would beat every other sedan by a large margin at the 36-month mark. The Best Mid-Size Car, Subaru Legacy, was given a 51.8% resale value at 36 months and 38.4% at 60 months. As Best Luxury Car, the Audi A7 came in at 47.3% and 32.3%, respectively. Compared to the gasoline-powered winner, Chevy Tahoe, in the Best Full-Size SUV category at 55% and 43%, the Model X would have prevailed at 56.7% and 34.3%.

Perhaps as more legacy auto manufacturers come over to the all-electric side, the categories will become more agnostic about vehicle power sources for awards.

Tesla Model 3, Model X take top spots for EV with highest resale value by KBB

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Tesla Model S replaces Dodge Charger as Fremont PD’s latest patrol vehicle

Simon Alvarez

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Posted on January 24, 2019

A Tesla Model S will soon be starting a new life with the Fremont Police Department. In an announcement on Wednesday, the Fremont PD stated that it would be launching a pilot program to test out if battery-electric cars such as Tesla’s flagship sedan are cut out for full-time police duty. The upcoming deployment of the Model S also plays a part in Fremont’s overall goal of reducing greenhouse gases by 25% by 2020.

The Fremont PD opted for a 2014 Tesla Model S 85 as its first all-electric patrol car. The vehicle will be replacing a 2007 Dodge Charger, which will soon be taken out of service due to the vehicle’s age. The car was given a set of modifications specifically for police use, including an overhead light bar, a prisoner partition, headlight flashers, armored panels for the driver and front passenger doors, and a large, heavy-duty push bumper. The Fremont PD shared an image of the modified Model S, and it’s pretty difficult to deny that the all-electric car looks very good (and even a tad intimidating) as a patrol car.

As a full-on police cruiser, the Fremont PD’s Model S 85 will be doing the same tasks as its gas-powered counterparts. This, according to the city’s police department, means that the vehicle will be used heavily. In a document explaining the rationale behind its EV patrol car program, the Fremont PD noted that patrol cars are exposed to various stresses every day. For one, police cruisers drive around 40-70 miles a day, and maneuvers involving hard on and off braking, as well as hard on and off acceleration, are normal. Police vehicles are subjected to fast and quick steering maneuvers at high speed too, as well as extended idle periods where emergency lights and other police equipment are activated.

The Fremont PD’s Tesla Model S 85 before modifications. (Photo: Fremont PD)

The Fremont PD’s Tesla Model S 85 after partial modifications. (Photo: Fremont PD)

The Fremont PD’s Tesla Model S 85 patrol car before and after modifications. (Photos: Fremont PD)

With a range of 265 miles per charge, the Model S 85 does seem to have enough battery power for an average day’s police work. The Fremont PD notes that the vehicle’s electric motor meets the requirements for hard on and off acceleration, and the Model S 85’s heavy-duty brakes, coupled with regenerative braking, meets the braking demands of patrol cars. The all-electric car’s low center of gravity also provides excellent steering and handling at high speeds. That said, the Fremont PD does have concerns with extended idle times, as activated emergency lights and other accessories might eat into the Model S’ range.  

As noted by the Fremont PD, a notable advantage for its Model S 85 cruiser lies in its maintenance needs, or lack thereof. Being an all-electric car, the Model S has far fewer moving parts than the Dodge Charger it is replacing. Thanks to features like regenerative braking, the electric car requires fewer replacement parts, which, in turn, results in lesser downtime. Ultimately, though, the vehicle also helps Fremont transition towards sustainability, as addressed by Fremont Police Captain Sean Washington in a press release.

“The electric patrol vehicle pilot program is an extension of the City’s clean technology and smart city initiatives to help make Fremont a more sustainable community,” Washington said.

The Fremont PD captain’s reference on the city’s sustainability is no exaggeration. As noted in a CBS local report, the vehicle fleet of Fremont’s police department is responsible for 980 metric tons of carbon dioxide emissions every year. With its electric car fleet program, Fremont PD expects to reduce its fleet’s greenhouse gas emissions by up to 10%. The gas and maintenance savings presented by the Model S patrol car is also notable. Over five years, it is estimated that a Ford Explorer cruiser would consume around $32,000 in fuel, with an additional $15,000 in maintenance costs. The Model S 85 is expected to consume only a fraction of this cost.

Tesla’s electric cars have been used as police vehicles in the past. Back in 2015, the LAPD announced that it would be leasing two Model S P85D that will be used as pursuit vehicles for its electric car initiative. While the cars met the LAPD’s demands for performance and range, the vehicles were weighed down by their high price. The Denver PD also revealed its own Model S police car, though the vehicle was mostly used for community outreach events instead of everyday police work.

Perhaps the closest initiative to Fremont PD’s recently announced Model S cruiser is Luxembourg’s twin Tesla pursuit vehicles, both of which serve as rapid response patrol cars. A similar program was also launched last year by the Swiss Police, though the cars used in the initiative were Model X SUVs. Elon Musk later took to Twitter to express his approval for the Swiss Police’s initiative, even joking that with the Model X in service, “bad guys will definitely not escape.”

The Fremont PD’s Tesla Model S 85 patrol car is expected to be deployed soon.

Tesla Model S replaces Dodge Charger as Fremont PD’s latest patrol vehicle

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Tesla, other carmakers’ EV output could ‘vastly outweigh consumer demand’ by 2030: study

Simon Alvarez

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Posted on January 23, 2019

With electric vehicles steadily improving and with large markets such as Europe and China embracing sustainable transport, the market for green cars has seen a notable rise. In 2018 alone, two million electric vehicles were sold globally, and all signs point to further growth ahead. In a recent analysis, research firm Deloitte noted that over the next decade, there would probably be an additional 21 million EVs driving on roads across the globe.

Deloitte expects the adoption of electric vehicles to become more widespread in the coming years. From two million in 2018, the research firm expects 4 million EVs to be sold by 2020. By 2025, Deloitte expects global EV sales to hit 12 million. By 2030, the research firm estimates electric vehicle adoption to rise to 21 million units, with battery-electric vehicles such as Tesla’s Model S, 3, and X accounting for roughly 70% of the global auto market’s total EV sales.

Deloitte’s analysis notes that two notable factors primarily drive this strong EV adoption trend. One, there is a growing demand for well-rounded electric vehicles like the Tesla Model 3. Two, government policies from key markets such as Europe and China are becoming more favorable for EVs and EV-buyers, including inner-city restrictions for gasoline and diesel-powered cars.

While electric cars today are still weighed down by their prices, Deloitte’s research suggests that EVs would likely reach cost parity with gasoline and diesel-powered vehicles by 2024. Supported with government subsidies and augmented by technological advances such as Tesla’s ever-evolving driver-assist Autopilot features, the research firm estimates that cost parity with internal combustion-powered cars could be achieved as early as 2021. Michael Woodward, UK automotive partner at Deloitte, explained the firm’s findings as follows.

“In 2018, we saw global EV sales surpass two million units for the first time; twice those sold in 2017. In the UK, the cost of petrol and diesel vehicle ownership will converge with electric over the next five years. Supported by existing government subsidies and technology advances, this tipping point could be reached as early as 2021. From this point, cost will no longer be a barrier to purchase, and owning an EV will become a realistic, viable option for new buyers,” he said.

While Deloitte’s conclusions invoke an air of optimism for the electric car market, though, the research firm’s UK automotive partner warns that there would likely be a point where supply would exceed the demand for electric vehicles. The firm’s research also warns that the number of new and legacy auto manufacturers entering the EV market over the next years would eventually be “unsustainable.”

“Whilst there is a distinct trend developing in the EV market, the story is not a clear cut one. As manufacturers increase their capacity, our projections suggest that supply will vastly outweigh consumer demand by approximately 14 million units over the next decade. This gearing up of EV production is driving a wide ‘expectation gap’ and manufacturers, both incumbent and new entrants alike, will need to adapt towards this new competitive landscape. Those that can successfully build trust in their brand, ensure a positive customer experience from initial sale through to aftercare, and reflect consumer shifts towards the sharing economy in future business models will successfully navigate this. Equally, continual investment in engineering talent and the formation of partnerships with bespoke battery producers and third-party mechanic networks will also be important.”

In a way, the conclusions drawn by Deloitte are a bit strange, since the firm seems to be suggesting that the global demand for electric cars would roughly peak at 21 million a year. Considering that the overall auto market is far larger than 21 million vehicles per year (Statista estimates that over 80 million cars were sold in 2018 alone), the study appears to be suggesting that the demand for gasoline and diesel-powered vehicles would remain steady long after EVs reach cost parity. This is a pretty liberal assumption, which ignores the idea of car buyers completely committing to electric transportation once they try out a premium EV.

Tesla’s growth and triumphs over the years had all but proved that there is a very real demand for premium electric cars in the market. With the release of potentially disruptive vehicles such as the Model Y SUV, the Tesla pickup truck, and the Tesla Semi, the market’s acceptance of electric cars as a preferred form of transportation would likely be even more pronounced. As more car buyers transition to EVs, it would not be too farfetched to assume that the demand for electric cars could far exceed 21 million vehicles per year long after 2030.

Tesla, other carmakers’ EV output could ‘vastly outweigh consumer demand’ by 2030: study

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