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Tesla going full speed ahead, but it has competition

Shrugging off any concern about falling gas prices, Tesla is planning to have its medium-priced Model III on the road by 2017. If it meets with anything like the reception of the 2014 Model S, Tesla will be in good shape.

Auto reviewers were ecstatic about the Model S, saying it put Tesla in a class by itself. As Ali Aslani wrote on MasterHerald.com:

If you think electric cars are slow and wretched creatures, you obviously haven’t seen the 2014 Tesla Model S. This vehicle is a beast on wheels that will make you forget half your life’s problems, until you look down at the dash and remember that you cannot pull up to a gas station for refueling, once you run out.

That refueling is becoming less and less common, however, as Tesla’s battery technology has pushed the range for its vehicles to 400 km, or 250 miles. It’s enough for a good commute to work. And recharging stations are becoming more common as Tesla and other auto manufacturers push to have them installed.

What really turns on car enthusiasts, however, is the acceleration possible with an electric motor. Alex Kerston posted a video on CarThrottle.com, in which a user who normally drives a Lamborghini Aventador has just ridden in the 691-hp Model S P85D:

The acceleration is ridiculous. I daily drive an Aventador and I thought I got used to fast acceleration. But no. … As a passenger, you do not get a chance to get ready for it at all. My internal organs were glued to the back of my body. … after about a dozen of those 0-60 accelerations, I felt like I had to puke – probably the first time I’ve felt this way in many years.

The question is, is this the kind of performance ordinary drivers are looking for? The Model III will weigh 1,000 pounds more than the Model S and therefore won’t be in the same class as the roadsters. But at $35,000 to $50,000, it will still be in the higher class of buyers. With all the inconveniences of recharging and being a first mover in the electric field, it will be a wonder if the Tesla standard model will be able to reach the 500,000 sales mark at which the company is aiming.

Meanwhile, other auto manufacturers are not standing still. Last week, Volkswagen, the largest auto company in the world, reportedly bought a stake in the Silicon Valley battery manufacturer QuantumScape, which gives VW access to a technology that could potentially deliver far more range that Tesla’s 400 km. QuantumScape’s solid-state batteries also carry a smaller risk of fire than the lithium-ion batteries used in many electric vehicles, including Tesla’s. Hybrid technology leader Toyota has been developing comparable technology since at least 2010, and EV leader Nissan has been promising similar developments. By the time Tesla comes to market with its lithium-ion-driven Model III, it could end up looking downright conservative in its technology.

Volkswagen’s investment in solid-state batteries is especially interesting, since at one point it was actually copying Tesla’s approach to EV battery technology. In 2009 and 2010, Volkswagen was working with Tesla co-founder Marin Eberhard on Tesla’s cylindrical-style lithium batteries but rejected the technology as too complex when it brought the e-Golf to market. Now Volkswagen is looking to leapfrog Tesla into solid-state technology.

Volkswagen Group is planning a short-term offensive against Tesla. It will bring out the $100,000 electric R8 sports car to compete with the Model S. Also in the works is the forthcoming Q8 crossover coupe. Both cars will be produced by VW’s Audi subsidiary.

Other manufacturers are taking aim at Tesla’s share of the $100,000 electric sports-car market. BMW is likely to add more products to its electric “I” brand and has unveiled an electric powertrain that it’s calling the “Tesla killer.” Porsche, also owned by Volkswagen Group, is said to be planning an electric version of a smaller sedan, code-named the Pajun. Former Tesla investor Mercedes-Benz is also working on an electric version of its flagship S-Class vehicles.

The takeaway is that powerful electric vehicles with a suitable range are no longer going to be a luxury item. If Tesla is successful in breaking through with the Model III, it’s going to be followed quickly by competitors in the same class and perhaps with a different technology.

Europe says yes to alternative vehicles

Things have always been a little easier in Europe when it comes to saving gas and adopting different kinds of vehicles. The distances are shorter, the roads narrower, and the cities built more for the 19th century than the 21st.

Europeans also have very few oil and gas resources, and have long paid gas taxes that would make Americans shudder. Three to four times what we pay in America is the norm in Europe.

Thus, Europeans have always been famous for their small, fuel-sipping cars. Renault was long famous for its Le Cheval (the horse), an-all grey bag of bones that’s barely powerful enough to shuttle people around Paris. The Citroën, Volkswagen and Audi were all developed in Europe. Ford and GM also produced models that were much smaller than their American counterparts. Gas mileage was fantastic — sometimes reaching the mid-40s. A big American car getting 15 miles per gallon and trying to negotiate the streets of Berlin or Madrid often looked like a river barge that had wandered off course.

More Europeans also opt for diesel engines instead of conventional gasoline — 40 percent by the latest count. The overall energy conversion in a diesel engine is over 50 percent and can cut fuel consumption by 40 percent. But diesel fuel is still a fossil fuel, which have a lot of pollution problems and don’t really offer a long-range solution. So, Europeans decided that it’s time to move on to the next generation.

Last week the European Union laid down new rules that will try to promote the implementation of all kinds of alternative means of transportation, making it easier for car buyers to switch to alternative fuels. The goal is to achieve 10 percent alternative vehicles by 2025 over a wide range of technologies, removing the impediments that are currently slowing the adoption of alternatives. If everything works out, tooling around Paris in an electric vehicle within a few years without suffering the slightest range anxiety would become a reality.

By the end of 2015, each of Europe’s 28 member states will be asked to build at least one recharging point per 10 electric vehicles. Since the U.K. is planning to have 1.55 million electric vehicles. That would require at least 155,000 recharging stations, which is a pretty tall order. But members of the commission are confident it can be done. “We can always call on Elon Musk,” said one official.

For compressed natural gas, the goal is to have one refueling station located every 150 kilometers (93 miles). This gives CNG a comfortable margin for range. With liquefied petroleum (LPG) it will be for one refueling station every 400 kilometers (248 miles). These stations can be further apart because they will mainly be used by long-haul trucks travelling the TEN-T Network, a network of road, water and rail transportation that the Europeans have been working on since 2006.

Interestingly, hydrogen refueling doesn’t get much attention beyond a sufficient number of stations for states that are trying to develop them. There is noticeably less enthusiasm for hydrogen-powered vehicles than is expressed for EVs and gas-powered vehicles. All this indicates how the hydrogen car has become a Japanese trend while not arousing much interest in either Europe or America.

At the same time, Europeans are planning very little in the way of ethanol and other biofuels (they also mandate 20 percent ethanol in fuel). Sweden is very advanced when it comes to flex-fuel cars. They have been getting notably nervous about the misconception that biofuels are competing with food resources around the world — Europe does not have its own land resources to grow corn or sugarcane the way it is being done in the United States and Brazil. Europe imports some ethanol from America but it is also now developing large sugar-cane-to-ethanol areas in West Africa.

Siim Kallas, vice president of the European Commission for TEN-T, told the press the new rules are designed to build up a critical mass of in order to whet investor appetites for these new markets. “Alternative fuels are key to improving the security of energy supply, reducing the impact of transport on the environment and boosting EU competitiveness,” he told Business Week. “With these new rules, the EU provides long-awaited legal certainty for companies to start investing, and the possibility for economies of scale.”

Is there any chance that the public is going to take an interest in all this? Well, one poll in Britain found last week that 65 percent would consider buying an alternative fuel car and 19 percent might do it within the next two years. Within a few years they find the infrastructure ready to meet their needs.