Makenna Nicholas
Case 8: Tesla, Inc.: Supercharging Auto Sales
1.
Let's break down the sources of loss:
a.
What are potential sources of loss when one buys an internal
combustion engine (ICE) vehicle?
i.
Some sources of loss a buyer should consider when buying an internal
combustion engine vehicle are the depreciation costs, fuel costs,
maintenance, and overall environmental impacts. ICE vehicles tend to
depreciate much faster than EV vehicles do so someone needs to consider
this, the overall lifespan the car will likely have, and the value you will get
out of it when purchasing one. Fuel costs in an ICE vehicle is also greater
than an EV and can be very pricey at times depending on the economy and
how oil is doing. Furthermore, depending on the car that you have and the
gas mileage that it gets a person’s yearly gas costs can be extremely
pricey. Maintenance goes along with depreciation in a sense and is
important to think about when purchasing an ICE vehicle as nobody wants
to have to do a lot of repairs and unneeded maintenance to their car. These
tend to be more frequent than an EV having to go in for oil changes,
engine repairs, and transmission issues. This can even lead to higher
ticketed items and can be expensive long term. Finally, ICE vehicles are
obviously worse for the environment and produce carbon emissions and
can put pollution into the air as a result of driving them which is not good
for the earth or humans long term.
b.
What are the potential sources of loss when one considers buying an
E.V. for the first time?
i.
Some potential losses when someone considers buying an EV for the first
time is the upfront cost of the vehicle, charging concerns, and anxiety in
terms of charging and range abilities on the car. EV tend to be more
expensive than a regular ICE vehicle would be and in turn this can scare
consumers away from buying it. People do not know if it will be worth the
investment long term and can also be so accustomed to what they are used
to to want to make the switch. There are also lots of charging concerns to
take into account. First off, depending on the type of EV that you have you
must find an adaptable charging station that works for your car and that
can be a headache in itself. Not to mention if you find a charging station
and they are all taken, knowing it takes a while to charge to begin with.
There are also concerns about the range and how far you can really get in
an EV before having to stop in comparison to an ICE vehicle.
Furthermore, EVs are continuing to evolve and the technology is always
