Tesla Tells Detroit To Stop Fighting Electric Cars

A top Tesla exec said Friday that traditional automakers have stunted electric vehicles by building bad cars, lobbying against new environmental rules and attempting to circumvent ones already in place.

“We want other manufacturers to succeed,” said Tesla Vice President Diarmuid O’Connell at the Detroit Athletic Club. “But there is nothing in their design that is viscerally appealing.”

Part of Tesla’s long-term plan, O’Connell said, was to start with a ground-breaking vehicle but expensive Tesla Roadster, then build a more luxurious but less expensive vehicle like the Model S and Model X and then, eventually, create a vehicle like Model 3, a $35,000 electric car currently scheduled to arrive at the end of 2017.

During that time, Tesla hoped to see other carmakers joining the electric car race with just as much fervor, which would have helped create economies of scale to lower costs for everyone.

Unlike Tesla, which has focused on compelling design, usable range, performance and safety, other carmakers have built compliance vehicles that have not aggressively pushed the auto industry toward electrification, O’Connell said.

Tesla Vice President Diarmuid O’Connell

“We haven’t seen as much competition as we’d like,” said O’Connell, crediting only Nissan and BMW for its electric vehicle efforts.

“(Carmakers) are not manufacturing for success,” he said.

Instead, carmakers have continuously fought regulations such as raising fuel economy standards to maintain a status quo that contributes heavily to global warming and outdated technologies, such as the internal combustion engine.

However, O’Connell said, that Tesla’s efforts have proven that “electrification in transportation is no longer a niche issue.”

O’Connell outlined some key measures that would help electrify even more vehicles.

First, regulations such as Corporate Average Fuel Economy standards should not be allowed to be changed but should remain intact or even increased in the future.

“We should block attempts for carmakers to use compliance loopholes,” he said, referring to companies that are building low volume electric vehicles that are only sold in California to collect ZEV credits.

Additional incentives should be considered, such as are in applied in places like Norway and California.

In Norway, if a person buys an electric vehicle, they do not have to pay the 25 percent value added tax, registration fees are waved and additional incentives are provided. In California, EV buyers can obtain a $7,500 federal tax credit, a $2,500 state credit and access to drive in carpool lanes even with only one person in the vehicle.

Tesla would like to see other considerations in the future that might help move people into electric vehicles, such as changes in zoning and permits for buildings, requiring them to have electric vehicle charging stations. The same should be considered for landlords, possibly requiring them to install charging stations for renters.

The goal, O’Connell said, is not just to electrify the auto industry but also to create a sustainable future.

“Imagine your house that is an energy creation device with sustainable energy,” he said. “It’s already happening.”