How Much Will Electric Vehicle Buyers Pay for Additional Range?

By Eric Loveday · February 22, 2012

Tesla Model S

With the introduction of its upcoming Model S, Tesla Motors is putting a price tag on range and asking buyers "How much are you willing to spend?"

Since lithium-ion batteries are costly, increased range carries a hefty price tag. For the Model S, a jump from 160 to 230 miles costs $10,000. Moving up to 300 miles is an additional $10,000. Tesla will soon discover what buyers are willing to part with an extra $10,000 for 70 miles of added range. Other automakers will likely keep an eye on the percentage of buyers who opt for one of the more costly Tesla Model S variants.

In the future, battery costs will drop. But for now, all eyes are on the Tesla Model S, as its the first vehicle to offer increased range as an option.

About the author

Eric Loveday is an automotive enthusiast who is passionate about everything auto. He purchased a 1970 Chevelle at age 16, quickly outgrew its dated engineering and outrageous consumption of gasoline, and sold it off. Eric developed a true passion for automotive writing after graduating from the University of Michigan with a degree in print journalism. Eric spent most of his time since then ...

Full bio · 145 posts

Comments

· ex-EV1 driver · 12 weeks ago

I think what will be more interesting is to see how much range people pay for in their second EV. Initial purchases will mostly be based on guesses. Nobody has ever had the choice of a 300 mile production EV before.

· alt-e · 12 weeks ago

I think it is great that Tesla is doing this and I wish that other, lower base cost, manufacturers would do the same. Everyone is different and has different driving needs. So let the consumer decide how much battery they each need. I think the adoption of EVs would happen a lot faster if we didn't need to spend all our time talking about the range limitations of 100 miles.

Another thing to take into account is that what a cycle does to a battery pack in terms of life reduction is a function of how deep that cycle is compared to the total capacity of the pack. So people who invest in larger packs are going to see their packs last longer, given the same driving cycle. This may allow more people than you might think to invest in a bigger pack. There is a penalty in terms of greater energy consumption to drive, but there is also a benefit in greater battery life. And possibly the elimination of a whole other ICE car.

Naturally these issues will eventually go away as batteries get better. But for now they are important.

· Verde (not verified) · 12 weeks ago

The Model S battery options effect performance as well as range so its not clear if premium buyers are opting for more range for the money, or faster acceleration, or access to the Tesla Supercharging network, or a better battery warranty. I was all set to go for the cheaper 160 mile pack until all the other issues were added to the decision criteria.

· Jiminy · 12 weeks ago

I think a pertinent question to ask oneself when considering the options is at what additional range can you justify selling off the ICE car. If it costs 10 grand more for the extra range but you can get rid of a car because of the extra range then the extra dough is certainly worth it. Even if that second car doesn't cost too much to keep around there are still quality of life benefits in getting rid of an extra car, especially for those in this price bracket.

I still think most people who opt for maximum range will find they really didn't need it if they care to look at actual daily usage.

· Londo Bell (not verified) · 12 weeks ago

I think that some of you may have jumped into conclusion too soon.

Great range is "great," but what about affordability?

The ultimate goal, as per my view, is to have the general public to go for EV. At least the majority of it. However, if you also offer, say, $10K premium for a 100mi upgrade, then a lot of consumers will just sit and wait; they don't want to buy the bargain price one, but wait for the upgrade to come down in price, or manufacturers rebates to kick in, before deciding on an EV.

Don't forget, with larger pack, that means one MUST have L2 and not the L1 trickle charger in order to charge the vehicle to full from, say, 30% or below. I'm talking even for the faster 6.6 connection. Again, that works against affordability.

The worst part of this post (not that the post is poorly written, but how the data may be used by various manufacturers) is that Tesla is a semi-luxury brand. The fact that one may pull data as a reference for, "hey, those folks are willing to fish out another $10K for 100 mi, for example," can skew the data so badly for, say, the LEAF's SV folks or the i folks, who value a balance between money and environment. Very dangerous use of data there.

Remember, getting rid of the 2nd car is a good, but novel idea, for most of the not-so-wealthy folks. Their (my) vehicles aren't expensive to begin with, and selling them may only get several thousands dollars - way less than enough money to get that extra range...

There are cons for not having a set of standards, but let the consumer to decide...cost, multiple technologies that many will fail, and a crowd that can be completely lost. Consumers are like sheeps; we need someone to herd them :)

· alt-e · 12 weeks ago

@ Londo - If a particular person thinks that $10k is too much for an additional 100 miles then they don't have to buy it. Offering it as an option doesn't hurt anyone. It just allows each person to evaluate their needs and their budget and make their own decisions.

And the graduations don't need to be that steep. If there was a $5k option for the LEAF to go 150 miles I bet that would be a pretty popular option.

It would open the LEAF up to many whose commutes are just a bit too long.

· Steven (not verified) · 12 weeks ago

@alt-e & Londo - The only way I can currently get my LEAF up a 5500 ft elevation gain in 30 miles is to deep-cycle it. I don't even need 50 miles, though as someone observed it wouldn't hurt (except my pocketbook). The question for the engineers out there is: would it be possible to open a port to the battery pack on the LEAF to add just, say, 5 or 10 cells? If so, it would seem like a good idea allowing 1st gen LEAFs to age gracefully as their battery packs degrade. Smaller incremental addition capability would allow the LEAFs to stay within weight specs and not take up any more of the LEAF's already restricted cargo space than absolutely necessary .

· alt-e · 12 weeks ago

@ Steven - Each of the cells in a modern EV is wired to circuitboards that monitor each cell and adjust the current during charging to try to bring up the lower performing cells. In other words, the car is designed to have a certain number of cells. It is not simple to add more even if there is space available. Any cells need to be "engineered in" to the car.

As your pack looses performance over time that loss can either be due to the overall pack declining or due to one to a few cells declining sooner than the rest. I think as early as we are in the production of EVs this loss in the performance in a small number of cells may be common after a few years. The LEAF is designed for quick evaluation and swaping of bad cells at the Nissan dealer. So look for that in a few years if the performance declines. You may be able to get it back up.

The good news is that all that I have seen out there on battery performance of LEAF packs is that they seem to be aging pretty well. These packs may beat expectations.

· darelldd · 11 weeks ago

>> The Model S battery options effect performance as well as range so its not clear if premium buyers are opting for more range for the money, or... <<

And excellent point! As in most things... it just isn't that simple.

· EVNow · 11 weeks ago

@Londo Bell "Tesla is a semi-luxury brand"

Haha. Musk won't be pleased !

Tesla is definitely a luxury brand. Not a "near luxury" brand like Infiniti or Acuar. Tesla is aiming straight at luxry cars like BMW 6 series (for S) and X6/Porsche Cayenne (for X).

From reading the Tesla forums - there are two types of people buying Tesla. Ones who are in the 1%. Others who can't really afford a 60k car, but still are streatching. The 1% people are all going for the 85kWh model and a lot of them even for the Signature & performance ones that can cost almost $100k. The non-1 percenters who are buying above what they normally spend on cars are caught in a bind (like me). We want to buy the base model - but the base model is severely handcapped. It doesn't support quick charge. I want an upgrade from Leaf, not a downgrade.

Coming back to the range question, my next car will have more range than Leaf's 73 EPA miles. I need more range in winter. I'm willing to pay upto $10K for 50 or more miles (+ getting a more "near luxury" car) i.e. spend a couple of hundred more per month on lease.

· ex-EV1 driver · 11 weeks ago

@EVNow,
I don't see how you can consider the Model S to be a downgrade from a Leaf. It may cost a whole lot more for a little more utility but it is definitely a step up.
The Model S base model:
Charges Faster (6.6 KW base, 16 KW upgrade -vs- Leaf's 3.3 KW)
Holds more (trunk and frunk -vs- small hatch)
Goes farther (160 miles per charge -vs- Leaf's 100)
Quicker (0-60 in ~6.6 seconds -vs- Leaf's ~10 sec)
More AeroDynamic (Cd = .22 -vs- Leaf's ~.3)
Better Handling (hard to prove at this point)
Better looking and fancier (purely opinion of course)
and we have yet to see if it has the nice Tesla regenerative braking.

· Londo Bell (not verified) · 11 weeks ago

I think that EV Now's referring to the inability to QC on the base Tesla.

Although the standard charger comes with 6.6kW, ex-EV1 driver, the larger battery means a longer charging time. Thus, say with a mostly depleted Tesla S base, you may need 6+ hours to fully charge it under L2.

The LEAF, otoh, can be charged in about 30 min with QC.

Thus, say you need to travel 200 mi - the total charge time on a LEAF will be about 1.5 hr, vs almost 3-4 hours (just to get to that 200 mi mark) on the Tesla S base.

Even if you need to get to that 150 mi mark, you only need 30 min more on the LEAF.

If you look at it this way, you are actually paying $20K+ for a "near"-luxury vehicle that takes longer to charge when needed.

(Looking @ the future here, of course, with well geographically implemented QC stations nationwide.)

· EVNow · 11 weeks ago

@ex-EV1 driver ·

As LondonBell points out I was referring to QC only. A lot of people consider lack of QC a deal breaker - more specifically inability to charge using CHAdeMO. I calculated real scenarios of driving to Portland or Vancouver from Seattle, with upcoming CHAdeMO chargers, Leaf will be faster than Model S.

Ofcourse there is one more area where the base Model S is (or even the others) is a downgrade from leaf. You need to get leather to have heated seats. To me getting a leather in an EV is like a diet coke & double burger. I don't want leather. This might even be a deal breaker for me (though I'm in a minority here).

BTW, S has 10 kW charger as the std, not 6.6 kW.

· brg2290 · 11 weeks ago

If I remember correctly, the Nissan Esflow was touted to have a range of 150 miles using Leaf technology, and, reportedly, at a similar price point as the Leaf. Does anyone think this car is anything more than vaporware? And if it is produced, will the composites of the concept be retained, crucial for light weight (and greater range), or will it be built to a price point at the cost of range?

· ex-EV1 driver · 11 weeks ago

Good points about the QC. Around here QC is a joke. The utilities in CA are bound and determined to prevent them going in as long as they possibly can (unless of course, they get to charge a huge premium).
I haven't dug deeply enough on the seat options. I can see how that could also be an issue but I'm a little surprised that Tesla only offers seat heaters with leather. The Roadster had seat heaters independent of the seat material.

· Jose G · 11 weeks ago

Depends on how much range you need, how much you want, and how much you can afford. It's a great idea to offer customers the option. One thing should become clear though: The law of diminishing returns kicks in when it comes to more and more range in an EV. Making up some numbers here: The base range might cover 90% of your driving needs, you pay 10k more to cover another 6% of your needs, you pay 10k more to cover another 3% of your needs. Regardless, having more range is more about convenience and piece of mind.

· alt-e · 11 weeks ago

@ brg2290 - The last I heard was that Nissan is still working on what the next model will be, the Esflow or something else. Personally I think they should make as many different types of EVs as they can so that when the US EV factory opens, with its large volume, they can handle a variety of demographics.

· EVNow · 11 weeks ago

@alt-e · "The last I heard was that Nissan is still working on what the next model will be, the Esflow or something else. ..."

Actually, Nissan hasn't decided what their 4th EV will be.
- Leaf
- e-NV commercial van
- Infiniti EV
- ?

http://www.plugincars.com/tokyo-nissan-weighs-three-choices-next-electri...

"Mark reminded me that Nissan has committed to making and selling four distinct all-electric models, and three of the slots are taken—by the LEAF compact; an upcoming Infiniti mid-size EV; and a small commercial delivery truck."

· alt-e · 11 weeks ago

@ EVNow - That is what I meant.

A while back they were first trying to decide between the Esflow and a mini-mini-utility/family vehicle. The clear fan favorite is the Esflow, but I think that most marketing people would agree that the vehicle resembling a Kia Soul would sell better.

Interestingly, in a recent interview with Mark (I can't remember where) he said that it may end up being somewhere in between the two. These are two very different vehicles so I don't quite know what to make of that. Maybe a useful sporty vehicle?

Add comment

·

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
To prevent automated spam submissions leave this field empty.

All Discussions

Does EV Quick-Charging By the Minute Make Sense?

Nissan LEAF Article · 1 comment

Brad Berman says:
When drivers of gas-powered cars fill up at the gas station, they know they are paying a certain price for a clear and...

In Veiled Sales Pitch, A123 Warns about Dangers of EV Quick Charging

Article · 14 comments

Brad Berman says:
Last week, battery manufacturer A123 Systems explained in its corporate blog that some lithium-ion batteries are not...

The Race to Lock Down Electric Car Charging Real Estate

Article · 15 comments

Brad Berman says:
How do you know that electric car charging is hitting the mainstream? Because high-profile places like Walgreens and...

Chasing an Elusive Next Generation Battery to Rival Gasoline in Energy Density

Blog Post · 13 comments

Nick Chambers says:
According to a researcher working on I.B.M.'s Battery 500 project, lithium-ion technology has been stagnant since 2003...

Real Electric Car Battery Costs Remain Elusive

Article · 24 comments

Brad Berman says:
Recent reports about the declining cost of electric car batteries raise as many questions as they answer. I suspect...

Cars.com Lists Chevy Volt as One of "Top 10 Under-Appreciated Cars and Trucks"

Chevy Volt Article · 11 comments

Eric Loveday says:
Though the Chevy Volt is no stranger to awards and accolades, this latest honor seems fitting, if a bit unexpected....

Toyota Prius Plug-In Hybrid is Third Quickest Selling Vehicle in US

Toyota Prius Plug-in Hybrid Article · 6 comments

Eric Loveday says:
April's third quickest selling vehicle in the US was the 2012 Toyota Prius Plug-in Hybrid. The Prius with a plug spent...

Ford Focus Electric Rollout Continues to Crawl

Ford Focus Electric Article · 16 comments

Brad Berman says:
I ran into a friend in Los Angeles this week who called Ford’s dealership in Santa Monica—a red hot hotspot for EV...

What is the True Range of an Electric Car? The Mini E Experience Leaves Many Questions

Mini E Blog Post · 32 comments

Nick Chambers says:
Current electric car range estimates in the U.S. are based on an EPA test cycle that doesn't truly reflect real-world...

Tesla Model S Range Exceeds Even Tesla's Expecations

Tesla Model S Article · 6 comments

Eric Loveday says:
According to Tesla Motors, the 85-kWh version of the Model S is expected to achieve 250-350 miles of range during...