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How Do All-Electric Cars Work?
How Do All-Electric Cars Work?
Because electric cars are powered by electricity and not gasoline, it drastically
reduces the monthly spendings of car owners. According to Bloomberg, the
consumption of fossil fuels by automobiles currently stands at 23 Mn barrels
per day. However, with the increased popularity of EVs, the global gasoline
consumption in the passenger vehicle segment will drop significantly within the
next five years, as per a report by the International Energy Agency.
Although the initial cost of electric cars is quite higher than that of conventional
vehicles, in the long-run, it is actually cheaper to own and maintain EVs. Ergon
Energy states that the electricity needed to charge an EV is, on an average,
around a third of the price of petrol per kilometre, especially in developed
countries.
Given that the number of air pollution-related deaths have been on the rise
lately, switching to electric cars, especially when it comes to public transport,
could potentially reduce carbon emissions, thus slowing down climate change
and global warming.
In fact, electric cars are 100% emission free as they run on electrically powered
engines. Consequently, they do not emit any toxic gases or smoke that could
adversely affect the environment. In this count, all-electric cars – particularly the
ones powered by renewable energy – are much better than hybrid cars.
However, in this regard, it should be noted that the source of electricity is also
of importance in case of EVs. If the electricity is produced through
environmentally-damaging means like coal power plants, which is often the
case in developing countries, the environmental benefits of electric cars
ultimately get negated.
Less Noise Pollution, Smoother Ride
As mentioned above, the charging process of EVs can take anywhere from 30
minutes (in case of fast charging) up to 24 hours, depending on the capacity of
the battery and motors. Most, however, take around four to six hours to be fully
charged, which is several times longer than the time it takes to refuel a
petrol/diesel car.
The batteries currently used in electric vehicles have a lifespan of only around
three to 10 years, depending on the make and model. The lower battery life
often serves as a hindrance that affects the performance of electric cars. The
higher costs of batteries, which are caused by the insufficient supply of raw
materials, add to this problem.
Global
After a decade of rapid growth, in 2020 the global electric car stock hit the
10 million mark, a 43% increase over 2019, and representing a 1% stock share.
Battery electric vehicles (BEVs) accounted for two-thirds of new electric car
registrations and two-thirds of the stock in 2020. China, with 4.5 million electric
cars, has the largest fleet, though in 2020 Europe had the largest annual
increase to reach 3.2 million.
Overall the global market for all types of cars was significantly affected by the
economic repercussions of the Covid-19 pandemic. The first part of 2020 saw
new car registrations drop about one-third from the preceding year. This was
partially offset by stronger activity in the second-half, resulting in a 16% drop
overall year-on-year. Notably, with conventional and overall new car
registrations falling, global electric car sales share rose 70% to a record 4.6% in
2020.
About 3 million new electric cars were registered in 2020. For the first time,
Europe led with 1.4 million new registrations. China followed with 1.2 million
registrations and the United States registered 295 000 new electric cars.
Europe
Overall Europe’s car market contracted 22% in 2020. Yet, new electric car
registrations more than doubled to 1.4 million representing a sales share of
10%. In the large markets, Germany registered 395 000 new electric cars and
France registered 185 000. The United Kingdom more than doubled
registrations to reach 176 000. Electric cars in Norway reached a record high
sales share of 75%, up about one-third from 2019. Sales shares of electric cars
exceeded 50% in Iceland, 30% in Sweden and reached 25% in the Netherlands.
This surge in electric car registrations in Europe despite the economic slump
reflect two policy measures. First, 2020 was the target year for the European
Union’s CO2 emissions standards that limit the average carbon dioxide (CO2)
emissions per kilometre driven for new cars. Second, many
European governments increased subsidy schemes for EVs as part of stimulus
packages to counter the effects of the pandemic.
In European countries, BEV registrations accounted for 54% of electric car
registrations in 2020, continuing to exceed those of plug-in hybrid electric
vehicles (PHEVs). However, the BEV registration level doubled from the previous
year while the PHEV level thripled. The share of BEVs was particularly high in
the Netherlands (82% of all electric car registrations), Norway (73%), United
Kingdom (62%) and France (60%).
China
The overall car market in China was impacted by the panademic less than other
regions. Total new car registrations were down about 9%.
Registration of new electric cars was lower than the overall car market in the
first-half of 2020. This trend reversed in the second-half as China constrained
the panademic. The result was a sales share of 5.7%, up from 4.8% in 2019.
BEVs were about 80% of new electric cars registered.
Key policy actions muted the incentives for the electric car market in China.
Purchase subsidies were initially due to expire at the end of 2020, but following
signals that they would be phased out more gradually prior to the pandemic, by
April 2020 and in the midst of the pandemic, they were instead cut by 10% and
exended through 2022. Reflecting economic concerns related to the
pandemic, several cities relaxed car licence policies, allowing for more internal
combustion engines vehicles to be registered to support local car industries.
United States
The US car market declined 23% in 2020, though electric car registrations fell
less than the overall market. In 2020, 295 000 new electric cars were registered,
of which about 78% were BEVs, down from 327 000 in 2019. Their sales share
nudged up to 2%. Federal incentives decreased in 2020 due to the federal tax
credits for Tesla and General Motors, which account for the majority of electric
car registrations, reaching their limit.
Other countries
Electric car markets in other countries were resilent in 2020. For example, in
Canada the new car market shrunk 21% while new electric car registrations
were broadly unchanged from the previous year at 51 000.
Consumer spending
Consumers spent USD 120 billion on electric car purchases in 2020, a 50% increase
from 2019, which breaks down to a 41% increase in sales and a 6% rise in average
prices. The rise in average prices reflects that Europe, where prices are higher on
average than in Asia, accounted for a bigger proportion of new electric car
registrations. In 2020, the global average BEV price was around USD 40 000 and
around USD 50 000 for a PHEV.
Government spending
Governments across the world spent USD 14 billion on direct purchase incentives and
tax deductions for electric cars in 2020, a 25% rise year-on-year. Despite this, the
share of government incentives in total spending on EVs has been on a downward
slide from roughly 20% in 2015 to 10% in 2020.
In North America, there were 580 new electric bus registrations in 2020, down
almost 15% from the prior year. In the United States, electric bus deployment
primarly reflects polices in California, which is the location of most of the
current e-bus stock. In South America, Chile leads the way registering
400 electric buses in 2020 for a total stock of more than 800. India increased
electric bus registrations 34% to 600 in 2020.
Companies Mentioned
Toyota
BMW
BYD
Tesla
BMW
Volkswagen
General Motors
BAiC Motors, SAIC
Daimler AG
Chery Automobiles
Hyundai
Ford
Changan
Volvo
Anhui Jianghuai Automobile Co. Ltd. (JAC Motors)
Renault-Nissan
JMCG
Zotye
Mitsubishi
Yutong
Geely Automobile Holdings Ltd.
Great Wall Motor Co. Ltd.
Audi
Jaguar Land Rover
Mahindra Electric Mobility Ltd.
Honda Motor Co. Ltd.
Energica Motor Company S.P.A.
Nissan Motor Corporation
VISION
BUSINESS, MANAGEMENT
Tesla, Inc. follows its corporate vision and mission statements to focus its business on electric
automobiles and related products, such as solar panels and rechargeable batteries for cars and
other applications. However, recent changes in the market and the business have prompted
the company to revise its corporate mission statement while keeping the same corporate
vision statement for the meantime. Current strategies and management initiatives reflect these
changes. For example, Tesla’s marketing mix (4Ps) emphasizes the target role of the
company as a major player in the renewable energy storage market.
The “to accelerate” component of the corporate mission statement establishes Tesla’s role in
pushing the industry toward advanced technologies for sustainable business and products that
rely on renewable energy. The corporate mission also mentions “the world’s transition,”
which indicates the company’s expectation of successful dominance in the global market for
electric automobiles and related products. This component directly relates with the corporate
vision statement’s emphasis on the global market. Moreover, the change from “sustainable
transport” to “sustainable energy” shows that Tesla, Inc.’s corporate mission statement
evolves to match the current strategic objectives of the business. For example, the company
used to focus on producing electric automobiles only. However, this company analysis case
shows that the growing demand for renewable energy is now reflected in the corporation’s
improved business scope, to cover products like batteries and other potentially profitable
renewable energy solutions in the future.
1. Most compelling
2. Car company
3. 21st Century
4. The world’s transition to electric vehicles
1. To accelerate
2. The world’s transition
3. To sustainable energy
Tesla Inc.’s Organizational Structure Type & Features
Tesla has a functional or U-form organizational structure. The unitary-form (U-form)
structure uses organizational function as the main defining factor. For example, the company
has a structural group of employees for engineering, and another for sales and service. Some
structural characteristics of other types of corporate structure are also present in Tesla,
although at a less significant extent. In this company analysis case, grouping based on
business function stands as the most significant feature. The following characteristics are
significant in Tesla’s organizational structure:
Centralization. Tesla, Inc. uses centralization in its corporate structure. The emphasis of
centralization is managerial control on the entire organization through decisions that a central
group or team generates. In this case, the heads of the offices of the global hierarchy form the
corporation’s central headquarters, which directly control all operations. In this
organizational structure, Tesla minimally supports the autonomy of its regional or overseas
offices. The company’s headquarters make most of the decisions for overseas operations.
Divisions. This characteristic of the corporate structure focuses on the extent of geographical
or other types of divisions in Tesla Inc.’s automotive business. These divisions are used to
implement different strategies and marketing campaigns, and to organize financial records
and reports. The company’s main divisions in its corporate structure are (1) Automotive and
(2) Energy Generation and Storage. These divisions are less significant compared to the
function-based hierarchy of the organization. Also, Tesla’s organizational structure has the
following geographical divisions mainly used for financial reporting: (1) United States, (2)
China, (3) Norway, and (4) Other.
Automotive products
"Tesla electric car" redirects here. It is not to be confused with Nikola Tesla electric car hoax.
As of June 2021, Tesla offers four car models: Model S, Model X, Model 3, and Model Y. Tesla's
first vehicle, the first-generation Tesla Roadster, is no longer sold. Tesla has plans for a second-
generation roadster, a semi, and a pickup called the Cybertruck.
In production
Model S
Main article: Tesla Model S
Tesla Model S
The Model S is a five-door liftback sedan. Deliveries began on June 22, 2012.[91] The car became
the first electric vehicle to top the monthly sales ranking in any country, when it achieved first
place in the Norwegian new car sales list in September 2013.[92][35] The Model S won the
2013 Motor Trend Car of the Year,[34] the 2013 "World Green Car",[93] Automobile magazine's 2013
"Car of the Year",[94] Time magazine's Best 25 Inventions of the Year 2012 award,[95] as well as the
2019 Motor Trend "Ultimate Car of the Year".[96]
The Model S was the best-selling plug-in electric car worldwide for the years 2015 and 2016,
selling an estimated 50,931 units in 2016.[36] By the end of 2017, it was the world's second best
selling plug-in electric car in history (after the Nissan Leaf), with global sales of 200,000 units.
[97]
In June 2020, Tesla announced that the Model S Long Range Plus had an EPA range of 402
miles (647 km), the highest of any battery electric vehicle at the time.[98]
Model X
Main article: Tesla Model X
Model 3
Main article: Tesla Model 3
Tesla Model 3
The Model 3 is a four-door fastback sedan. Tesla unveiled the Model 3 on March 31, 2016.
[101]
Potential customers began reserving spots earlier that day with a refundable deposit.[102] One
week after the unveiling, Tesla reported over 325,000 reservations.[103] Bloomberg News claimed
that, due to the number of reservations, "the Model 3's unveiling was unique in the 100-year
history of the mass-market automobile."[104] Limited vehicle production began in July 2017.[105]
Since March 2020, the Model 3 is the world's best selling electric car in history, and cumulative
global sales passed the 1 million milestone in June 2021.[8][106][107] The Model 3 has ranked as the
world's best selling plug-in electric car for three consecutive years, from 2018 to 2020,[107][108] and
also as the best selling plug-in electric car in the United States since 2018.[109][110][111] The Model 3
also set records in Norway and the Netherlands, as the best selling passenger car model in
those countries in 2019.[112][113]
Model Y
Main article: Tesla Model Y
Tesla Model Y
The Model Y is a compact crossover utility vehicle. The Model Y is built on a platform that shares
many components with the Model 3.[114] The car has up to three rows of seats (up to 7 people),
[115]
68 cubic feet (1.9 m3) of cargo space (with the second and third rows folded),[116] and has an
EPA range of up to 326 miles (525 km).[117]
The Model Y was unveiled on March 14, 2019.[118] Deliveries for the Model Y started on March 13,
2020. The Tesla Model Y is being manufactured at Tesla Factory in Fremont, California,[119] as
well as in Giga Shanghai in China. A version of the Model Y is also expected to be produced
at Giga Berlin once the factory is open.[120]
Future products
In a surprise reveal at the end of the event that introduced the Tesla Semi on November 16,
2017, Tesla unveiled the second generation Roadster. Musk said that the new model will have a
range of 620 miles (1,000 km) with the 200 kilowatt-hours (720 MJ) battery pack and will achieve
0–60 miles per hour (0–97 km/h) in 1.9 seconds; it also will achieve 0–100 miles per hour (0–
161 km/h) in 4.2 seconds,[121] and the top speed will be over 250 miles per hour (400 km/h).
The SpaceX Package will include cold air thrusters that will increase the speed even more.
The vehicle will have three electric motors allowing for all-wheel drive and torque
[122]
vectoring during cornering.[122]
At the time, the base price was set at $200,000, while the first 1,000 units (the Founder's series)
will sell for $250,000.[122] Reservations required a deposit of $50,000, and those who ordered the
Founder's series paid the $250,000 in full upon ordering. Those who made a reservation at the
event were allowed a test drive (with a driver) in the prototype.[123] Deliveries are expected to start
in 2022.[124]
Tesla Semi
Main article: Tesla Semi
Tesla Semi
Cybertruck
Main article: Tesla Cybertruck
Tesla Cybertruck
The Cybertruck is a pickup truck unveiled on November 21, 2019,[132] with production set for 2022.
The truck's angular design had a mixed reception and some Wall Street analysts questioned
whether American pickup truck buyers will have interest in the Cybertruck.[133][134][135] On September
22, 2020, Musk revealed roughly 600,000 Cybertruck preorders.[136] James Goodwin, chief
executive of an Australian car safety organization, says that the angular design and steel
construction of the Cybertruck may pose safety risks.[137] After the Cybertruck's unveiling, Musk
announced that the Tesla Cyberquad, an electric four-wheel quad bike revealed alongside the
Cybertruck, would be an optional accessory for Cybertruck buyers.[138]
Discontinued
Tesla Roadster
Main article: Tesla Roadster (first generation)
The only discontinued Tesla vehicle model is the original Tesla Roadster.[139] The Roadster was a
two-seater sports car, evolved from the Lotus Elise chassis,[140] that was produced from 2008 to
2012. The Roadster was the first highway legal serial production all-electric car to use lithium-ion
battery cells and the first production all-electric car to travel more than 200 miles (320 km) per
charge. It is also the first production car to be launched into space; it was carried into a Mars-
crossing orbit by a Falcon Heavy rocket test flight on February 6, 2018.[141]
Other concepts
On July 20, 2016, Musk detailed his new master plan for Tesla. It includes more affordable cars
produced in higher volume, solar roofs, mid-size vehicles, SUVs and pickup trucks, as well as the
refinement of autonomous vehicles and the creation of a sharing economy, in which cars can be
active while the owner is not using them.[142] Tesla's plan also indicated building a minibus on the
Model X platform,[143] but in May 2017, Musk indicated that he might favor a 10–12 passenger
version of the Model X over a dedicated minibus design.[144] Musk dashed hopes for a Tesla
motorcycle, saying "we're not going to do motorcycles".[145]
Also in 2016, Musk revealed Tesla's intention to produce a car cheaper than the Model 3.[146] In
2018, Musk indicated a plan to enter a new market segment, offering a compact hatchback in
"less than five years".[147][148] In 2020, Musk said Tesla expects to have a $25,000 electric car within
3 years, which "will basically be on-par or slightly better than a comparable gasoline car".[149]
In April 2019, Musk announced Tesla's intention to launch an autonomous taxi service by the
end of 2020 using more than 1 million Tesla vehicles.[150] A year later, in April 2020, Musk stated
Tesla would not make the end of 2020 deadline but said, "we'll have the functionality necessary
for full self-driving by the end of the year."[151]
Tesla subsidiary Tesla Energy develops, builds, sells and installs solar energy
generation systems and battery energy storage products (as well as related products and
services) to residential, commercial and industrial customers.
The subsidiary was created by the merger of Tesla's existing battery energy storage products
division with SolarCity, a solar energy company that Tesla acquired in 2016.[152]
Tesla Energy's generation products include solar panels (built by other companies for Tesla), the
Tesla Solar Roof (a solar shingle system) and the Tesla Solar Inverter. Other products include
the Powerwall (a home energy storage device) and the Powerpack and Megapack, which are
large-scale energy storage systems.[153][154][155]
In 2020, the company deployed solar energy systems capable of generating
205 megawatts (ranked third in U.S. residential solar installations) and deployed 3 gigawatt-
hours of battery energy storage products.[156]
Other services
Tesla receives service revenue from its vehicle customers after their initial purchase; these
revenues reached $900 million in 2021 Q1.[158] As of August 2020, those services include vehicle
servicing, charging, insurance, software upgrades, and improved connectivity.
Future services which have been discussed include: Autopilot as a subscription,[159] paying for
a Wi-Fi hotspot in the car,[160] and the "Tesla network" (a ride-sharing offering).[161]
Charging
Supercharger network
Main article: Tesla Supercharger
Tesla Model S charging at a Supercharger station in Newark, Delaware
In 2014, Tesla launched the "Destination Charging location" network by providing chargers to
hotels, restaurants, shopping centers and resorts (and other locations where Tesla owners may
spend an hour or more) to provide on-site vehicle charging at twice the power of a typical home
charging station.[171]
Destination chargers are installed free of charge by Tesla-certified contractors; the locations
must provide the electricity at no cost to their customers.[172] All destination chargers appear in the
in-car navigation system.[173]
Connectivity
All Tesla cars come with "Standard Connectivity" which provides navigation using a cellular
connection, and the following only over Wi-Fi or Bluetooth: internet browsing, music
streaming (with a paid subscription), and, when parked, video streaming and "caraoke".
[178]
"Premium Connectivity" adds cellular access to those features and also provides live
traffic and satellite maps for navigation.[178][179]
Vehicle servicing
Tesla service strategy is to service its vehicles first through remote diagnosis and repair. If it's not
possible to resolve a problem remotely, customers are referred to a local Tesla-owned service
center, or a mobile technician is dispatched.[180][181] Tesla has said that it does not want to make a
profit on vehicle servicing, which has traditionally been a large profit center for most auto
dealerships.[182]
In 2016, Tesla recommended having any Tesla car inspected every 12,500 miles or once a year,
whichever comes first. In early 2019, the manual was changed to say: "your Tesla does not
require annual maintenance and regular fluid changes," and instead it recommends periodic
servicing of the brake fluid, air conditioning, tires and air filters.[183]
Insurance
On June 4, 2017, the American Automobile Association raised insurance rates for Tesla owners
following a report from the Highway Loss Data Institute.[184] The report concluded that the Model S
crashes 46% more often and is 50% more expensive to repair than comparable vehicles.
[184]
Similarly, the Model X was concluded to crash 41% more often and to be 89% more
expensive to repair than similar vehicles.[184] As a result, AAA raised insurance rates on Tesla
cars by 30%.[184] Tesla said that the analysis is "severely flawed and not reflective of reality",
however, Tesla failed to provide any contradictory numbers.[184] Shortly thereafter, Russ Rader,
the spokesman for the Insurance Institute for Highway Safety, confirmed the AAA's analysis and
that "Teslas get into a lot of crashes and are costly to repair afterward".[185][186] The following year,
an analysis of claim frequency and insurance cost data by the Insurance Institute for Highway
Safety conducted by financial research provider 24/7 Wall St. found that the Tesla Model S and
Model X were the two most expensive vehicles to insure.[187] Musk stated that he expects these
insurance rates will greatly decrease once driver-assist and self-driving technology become
commonplace.[187]
Starting in October 2017, Tesla partnered with Liberty Mutual Insurance Company to offer US
customers an insurance plan designed specifically for Tesla cars.[188][189] In August 2019, this
partnership was superseded by a partnership with State National Insurance,[190][191] but was initially
only available to Tesla owners in California.[190] In July 2020, Musk, relying on data obtained
through the partnership with State National Insurance, announced that Tesla was creating its
own "major" insurance company.[192] Tesla claims the insurance uses individual vehicle data to
offer personalized pricing.[192]
Conclusion
Tesla Motor Inc. is a great company, it renew the electric vehicle
industry. It shares its technique to their competitor. In consumers and
competitors’ 3
eyes, it is an incredible action of sharing the technique deeply to the
others. It might be changing the vehicle market, and people evaluate to
the electric car. The company shares its experience in order to builds
moreelectric charging stations to convenience the electric car’s owner.
The spirit of the company should be encourage to extent. Finally, green
awareness is very important, and most of the countries are encouraging
the green environmental enterprise such as Tesla. Some governments
encourage people to buy cars or other goods by providing tax incentives.
In the long run, prospect of Tesla would be very well