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Editor-in-chief at At the stage recently interviewed CEO and founder of Rivian RJ Scaringe. The big takeaway? That other EV manufacturers copy Tesla a lot. In this article, I will briefly discuss what Scaringe said and suggest whether it is actually true.
The rest of the interview is definitely worth listening to or reading the transcript of. It talks a lot about what’s going on with Rivian’s deals, especially with Volkswagen. So, if you’re a fan or an investor (or maybe both), be sure to check it out. Way into the discussion, the topic of slowing EV sales growth (not to be confused with slowing EV sales) came up.
Scaringe says the problem is explained as a lack of demand for EVs in general, but this comes mostly from companies selling inefficient EVs. He goes on to discuss the general lack of choice in the market, and that EVs at the high end of the market aren’t that great outside of a few models. Worse, the ones that perform reasonably well are often close copies of the Tesla Model Y, with other car dimensions sitting within mere millimeters of that car!
People from the fire market do not appreciate that, as they are used to being able to buy all kinds of cars that are very different from each other. Instead of finding what they want, they may choose a Tesla Model Y or simply sit in the EV transition waiting for something that best suits their desires. He says that’s why the R2 has gotten so much attention, as it serves the SUV market in general and isn’t trying to copy the Model Y.
“I think it’s not to say that the Model Y isn’t a great car. I think it’s an amazing car. I’ve had one. It’s just to say that I think the world needs more models,” he said. Scaring. Our view is that there is – and to use your word, which I like the word – there is a huge latent demand sitting on the sidelines waiting for a car that has a character, a package, a brand, a look, that will make them leave the burning car.”
This goes beyond measurements and cosmetics
Not only do I think RJ Scaringe is right about this, but I think it goes beyond what was said in the interview.
Let’s start with the interiors. Before Tesla, very few cars had a simple speedometer with a large center screen. Buttons were everywhere, and some cars began to resemble the Space Shuttle. After Tesla started eating into the auto industry, EVs quickly took off Tesla’s line. The interior was simple, sometimes as simple as a Tesla. The central touchscreens got bigger. This feature that matched the Model 3 and Y eventually returned to the ICE side, too.
Although the exterior is very different from the Tesla (even if the overall size is the same), almost all EVs follow the Tesla powertrain formula almost exactly. Transverse drive units (motor on the side of the car, like a front ICE), single speed reduction gear (no overdrive transmissions or GASP manuals!), and more soundproofing to keep the natural sound of the electric vehicle at bay. – these things are common throughout the EV industry.
This does not mean that there are no valid reasons for many or even all of these. Transverse drive units are both cost effective and energy efficient, especially for vehicles designed for road work. Transmissions increase the complexity of the machine, which means less efficiency and more points of failure. The rules add to the problems a driver has to deal with every day. And silent surgery? Luxury cars have long appreciated that and the whine of an electric car is not pleasant to some ears.
Why Diversity Doesn’t Matter
Good reasons, numbers, and special pages can take you so far in the world of cars. Why? Because there are many different needs and tastes out there, and many car buyers make irrational decisions.
When it comes to needs and tastes, people are used to the ICE market, as Scaringe said. Even small differences can make someone buy a car over another, even if the cars are almost identical. For this reason, many manufacturers have variants that make small changes to the car’s grille to make it a different car. For example, look at the GMC and Chevrolet trucks. There are also many different needs that a customer may have, including what they are carrying, what their body type is (short, tall, heavy, thin, etc.) -so), and where he is going.
Because we tend to wrap the cars we drive in things like our identity and even our dating efforts, people do all kinds of crazy things with their cars. Trucks with too much lift can be a liability off-road, cars that get terrible fuel, dorky crossovers that look like pickups but don’t have the ability, and small tire walls that leave the car is prone to potholes all come to mind. Simply put “The Model Y is the best looking, safest, and best specified car!” it does not sell cars. Getting people to have an emotional connection with the car does that.
When it comes to the interior, many people prefer the “heritage” look, but if you really think about it, is the interior of a typical car “heritage”? Not really. In computing, “legacy” refers to old things that are no longer used. EVs still represent a small fraction of the overall market, so “normie” cars are not “legacy” yet, although we hope that changes ASAP.
Hopefully as more manufacturers enter the EV space, they bring their own ideas along for the ride instead of trying to play it safe and copy Tesla. For example, the Jeep Wrangler 4xe (yes, it’s a plug-in hybrid) has a shiftable transmission when driven in EV mode, and the company has shown several EV prototypes with manual transmissions.
If more manufacturers take the risk of trying new things to see what ends up appealing to current consumers sitting through the EV transition, it could speed things up.
Image courtesy of Rivian.
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