Monday, July 14, 2008

Going Completely Gas Free for $100,000

Over the past few years, changes have been discussed in order to develop a solar, or electric automobile. A man by the name of Elon Musk, however, is putting just that idea into action with the Telsa. Yes forms of these cars have been developed, but currently Elon has production under way, with a plan for the future.
In the article, he discusses that although there aren't many being made currently (at just 1,800 a year) the trend seems to be following that by late 2010 there will be 20,000 cars on the market. As production continues to develop, Elon discusses, the price will continue to drop as well. Similarly as to our class lessons, he explains that "when you change the production quantity by a factor of 10, you can reduce the price by a factor of two." This follows the main idea of supply and demand.
Elon, goes on to further explain his products advantages which lead to consumers choosing his car over one that GM and Toyota may produce. The Telsa provides a completely gas free option for consumers. In the GM and Toyota cars, the gas is used complementary to the electricity. These cars do plug in, but unlike the Telsa, they use both forms of fuel. The idea that no gas is needed whatsoever is the most flattering advantage to Elon's product.
Deeper into the article, the idea of a carbon-cap or tax is discussed. Elon explains that he would rather see a tax due to the simplicity. Similar to our class lessons, this idea of a tax or cap provides a question. With the new electric cars-that do not burn fuel themselves, but use electric often produced by coal burning plants, and the development of hybrid's produced by GM and Toyota, there will be a rise in the production of carbon. Which idea is the best to limit this form of form of pollution?

1 comment:

Neil Boyer said...

Toward the end there was a very good point that stated "With the new electric cars-that do not burn fuel themselves, but use electric often produced by coal burning plants." Yes, new ways to fuel cars and other energy needs must be created, however at this current point in time all other alternative methods have large flaws. It is important to note that many of the new technologies require fossil fuels to create them. So in one hand you are not be putting petroleum in your vehicles, but you maybe using twice as much fossil fuel to produce the new technology. This is where an economic curve can be used to determine the total gain or total loss of each new technology. A major disadvantage is the cost. Since all the technology is relatively new, the cost is high and the quantity is low.