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Tesla Motors, Inc. Message Board

  • networthdev networthdev Mar 28, 2013 9:32 AM Flag

    EV's & cell phone business model

    Just like with your cell phone, the initial purchase price of the phone is a fraction of the actual purchase price, and the rest of the cost is amortized over time, in you're monthly bill. Now compare the purchase price of an ICE car to an EV supplied by our local electric utility, under this model. PLUS, given the simplicity of the EV, they would be ideal for turn in, refurb, and then resale to the utilities customers, as a lower cost, pre-owned EV, expanding the EV market even more.

    Utilities gain revenue growth, with all the new electricity they will be selling for the EV's, plus, the up front, EV fee, and therefore increased Wall Street interest/buzz about their stock. Win, win, unless you're an ICE dealer, or short EV stocks.

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    • This is not a good fit. The cell phone business model has you signing up for a 2 year service contract. What if you move to an area with a different utility provider? Do you have to leave your car behind? or are you stuck in that location? I don't see this model working. The capital cost for the car is 100X the cell phone cost. The utilities need to spend their capex on generation and infrastructure, not expensive cars.

      • 1 Reply to budwashougal
      • Non issues, if you sign up with a cell carrier, you can move anywhere you want in the contry and continue your service (people do it ALL the time), and utilities have reciprocal power agreements, as well as the ability to send crews into other utility locations to help with storm damage, etc.,etc.,. These guys are used to all sorts of reciprocal arrangements.

        Asset cost is NO ISSUE. Be serious, it's just a function of the utility/pun intended, you are deriving from the asset, and simply a spin on the existing, financing, or leasing of cars. :-)

        This will happen. Maybe sooner than you think, as in MUCH sooner. :-)

    • P.S. this is exactly what a utilities balance sheet is built for. To purchase expensive assets and amortize the cost over time. Match made in HEAVEN.

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