Recently, there’s been some bad news out of Detroit. Ford’s backing off on some upcoming EV models, including a three-row SUV many had been looking forward to, and will instead be focusing more on hybrids. GM has been having different problems with software, recently laying off 1,000 developers after a string of Silicon Valley types failed to acclimate to more traditional corporate culture.
While these companies would like to have us all believe that making EVs and software for EVs is simply too hard, other companies like Tesla and Rivian have been doing a lot better. Tesla is now making more EVs than anybody, even beating out ICE models in some segments. Rivian is still climbing the profit ladder, but is selling software to Volkswagen, a pretty good sign that “legacy auto” is struggling in odd ways while newcomers are having no problem churning out EVs.
So, we need to ask ourselves why these established players are struggling while newcomers are doing just fine.
Rivian and Tesla make products for a different consumer demographic than Ford and GM. Ford and GM make cars, Tesla and Rivian make tech products that drive. Some people want what Tesla and Rivian are selling: advanced, high tech machines that don’t look or operate like a traditional car, and some people want what Ford and GM are making: cars. Just cars. I don’t think most car buyers care all that much if their car is ICE or electric, as long as it’s affordable, easy and convenient, and meets their transportation needs. I don’t think EVs can replace ICE vehicles until they are just cars, that meet the needs of people who need a car (or truck).
I look at something like the Chevy Silverado EV Work Truck. It’s a good truck, that does truck stuff, with a lot of range and good power. But, it’s $80k. Most people just ain’t gonna spend $80K for a work truck. Some people will pay $90K to $100k+ for a high end luxury truck, like the Hummer EV truck or the GMC Sierra EV Denali, but those are high end vehicles for a relatively niche market. The mainstream options just aren’t quite there yet. Battery prices have to come down more, so that vehicles can be price competitive, AND, there needs to be more charging infrastructure.
That being said, there are options coming to the market that are getting close, like the Chevy Equinox EV or Honda Prologue. Those are relatively affordable, decent to good cars, that also happen to be electric. I think the only thing holding those cars back from wider scale adoption is charging infrastructure.
I’m not convinced that this comparison is true anymore.
I think Doug Demuro phrased it well when he called the Model 3 “The Greatest Appliance Ever Made”. The M3 and MY LR RWD cost the same as the cheap Ford and Chevy cars and crossovers / "CUV"s. Teslas aren’t just playthings for tech bros. Now, Rivians on the other hand…
Tesla’s have become much more price competitive, in those two segments (obviously that’s not the case in the truck segment, since the Cybertruck is the most niche of niche trucks). If you’re looking specifically for what Tesla is selling, it can be a great option. But, not everyone wants those models. Price isn’t the only dividing line, it’s also how it drives, styling and features, but also the brand. Companies like Ford and GM are pretty simple: they make and sell cars. Tesla is explicitly trying to disrupt the auto industry. I don’t think everyone wants to buy a disruptive product. I think Tesla has tried to “fix” problems that weren’t really problems, at least not for everyone. For instance, I don’t think most people were thinking, “I wish I could replace all the physical dials and switches in my car with a single, 20 inch iPad.” Or, “I don’t like how door handles work, let’s change them.” Tesla is clearly selling what some people want, I’m just not sure it’s what most people want.
Obviously people can buy whatever they want, whether it’s for a rational reason or not. It would be cool if any other vehicle on the US market could hit the same balance of performance, range, speed, price, etc.
It could and the US government has explicitly banned that from happening because it would put the “legacy” (and what legacy is that, exactly?") automakers out of business overnight.
I’d argue that Rivian makes a vehicle that operates like a normal vehicle and the “tech” part (infotainment) basically gets out of your way. Not much difference between Ford’s vertical screen and Rivian’s horizontal one outside the software that runs on it. That’s the mark of a good vehicle, IMO. That it’s a vehicle, and anything else it can do comes at a distant second place.
GM and Ford, and every other automaker have adopted the infotainment craze. Some have done it better than others, some companies have tried to force it on users while the quality is far below what it should be (Tesla). But you’re going to be hard pressed to find a new Ford or GM vehicle that doesn’t come standard with a touch screen interface these days.