An overlooked aspect to the EV revolution: the Economy

An overlooked aspect to the EV revolution: the Economy

We hear a lot about the efficiency, lower emissions, silent operation and other advantages of EVs. A somewhat overlooked aspect, IMO, is the effect on both local and the national economy as more drivers stop supporting the bleed out of millions of dollars a day going to foreign countries via the oil companies. That money is lost to us forever and helps finance despots and terrorists. The EV alternative costs consumers far less per mile (so they have more money for other uses) and most importantly it remains in domestic circulation where it can be used to build a better electric grid, large renewable energy plants and other local infrastructure improvements.

Not to mention more humming American factories and good manufacturing jobs as they turn out thousands of Model S, X and Gen3's to meet the growing demand for cars that cost much less to run.

Brian H | May 30, 2013

Be careful what you wish for. The US is on the verge of becoming an oil exporter.

risingsun | May 30, 2013

EV's are the future. Using 1/3 of the energy will be a huge net positive for the economy in the future. In 2011 Americans consumed 142.38 billion gallons of gasoline. So if Americans switched to electric cars they would save the gasoline equivalent of 94 billion gallons of gas. At $4 per gallon of gas, Americans would save $380 billion dollars a year.

SamO | May 30, 2013

@Brian H,

That just means we'll export MORE.

evpro | May 31, 2013

The key is that the $380 billion dollars is not only saved, it now becomes available for spending in this country. That is a massive stimulus and is real money, not virtual inflationary Fed dollars.

The combination of economy boosting, reduction in foreign dependency and lessening of CO2 emissions make this a national priority and certainly justifies both the company loan and the tax deduction for early buyers.

What's good for Tesla will be good for America.

If we turn into a big oil exporter in the long term (very doubtful), that will also be good for the economy. But I haven't noticed gas prices going down in this new cornucopia of hydrocarbons.

lph | May 31, 2013

Not just the oil thing which is great!
The MS is also taking business directly away from BMW, Mercedes, Audi, Jaguar etc. where the US really had no real competition except for Cadillac (even then only marginal).
That will tend to make the balance of trade swing in the other direction.
There is nothing but good that can come from a successful american EV car business like Tesla. It is one of the most patriotic things you can do.

mdemetri | May 31, 2013

I agree, Tesla is a win-win-win-win scenario for the economy and the US. The money I used to spend on gas is now going directly into the local economy.

Brian H | May 31, 2013

Elon took on very low-odds serious challenges, and made sure his offerings had the fundamental fall-back appeal of high quality and unparalleled value. After surviving crises by the skin of his teeth, those decisions have begun to pay off, big time.

Mel. | June 1, 2013

I believe the Export Administration act of 1979 is still being followed. So we can only export oil to Mexico and Canada. Anyone know of something different?

Brian H | June 1, 2013

Refined products are separate, and it will be a few years before unrefined oil is in surplus. Plenty of time to change regs. But the market is "fungible"; pouring into or withdrawing from any part of the pool affects the whole volume.

evpro | June 19, 2013

A high performance car that can run on sunshine and increasingly WILL run on sunshine. That's American sunshine BTW, (solar generation in California is setting new records). And the Tesla factory provides American jobs, with the next step being exporting the car to Europe and China...

The Tesla vision can be the foundation for an industrial revival that could transform the economy and create the new jobs we need. If only we can shift focus from short-term thinking and computerized stock trading to actually solving the big problems of Peak Oil and Climate Change. The Age of animal power > the Steam Age > The Fossil Fuel age > the Age of clean Renewable Energy and electrified transportation.

Tigerxml | June 20, 2013

I think, i would be like that - but there is another factor - if transport companies (like FedEx, dhl and so on) will use electric cars - then delivery cost will be cheaper