• Standard Range: 75 Miles
(Optional up to 100 Miles)
• Top Speed: 75 MPH
• Energy Efficiency: 165 MPGe
And the list goes on.
How much are car companies losing on their EV business? Collectively, hundreds of millions. In the case of the Fiat 500e, it’s so bad CEO Sergio Marchionne told prospective buyers…
That’s a weird statement for a CEO to make about one of his products, don’t you think? But it makes perfect sense when you realize how much Fiat is losing on the 500e. Marchionne confessed…
"I hope you don't buy it because every time I sell one it costs me $14,000."
Keep in mind, the 500e is not a cheap vehicle. It starts at $32,000. And yet Fiat is still losing $14,000 on every single one.
What does this mean? It means they lose $1 million every time they sell 69 cars. Clearly, Fiat cannot make up for their losses by increasing volume.
So why does Fiat bother to make the 500e? For that matter, why does any company make unprofitable cash-sucking EVs at all?
To meet this goal, California requires car manufacturers to sell a certain percentage of ZEVs every year. Car makers then earn “credits” for these ZEVs.
The penalty for not complying with the ZEV mandate? Simple. You can no longer sell cars in California.
Since California is the largest car market in the U.S., all major car makers are complying with the mandate. This is why they make unprofitable EVs -- to “earn” the right to sell gas-powered cars in California.
NOTE: Tesla is, of course, unique. The company is 100% dedicated to electric vehicles. They’ve only gotten this far because of hundreds of millions of dollars in investments. But the company is bleeding cash like crazy. As of this writing, Tesla has lost on operations money 14 quarters in a row. It is projected that even the much-hyped Tesla Model 3 will lose money.
So, you now know two things you might not have known before:
These two facts raise yet another thorny question:
EVs are unprofitable because of one simple reason…
Car makers want their EVs to have a range of 200+ miles per charge. They want their EVs to carry at least five people. They want their EVs to have fast acceleration, top-end speeds over 100 mph. And so on.
Car makers are stuck in the current paradigm. They want to take a gas-powered car, replace its gas engine “guts” with an electric engine… and get the same results for the same cost.
At this stage, EVs simply cannot be 1:1 replacements of gas-powered cars. To even attempt to make EVs 1:1 equivalents of gas-powered cars means high prices that average families cannot afford.
This is a big reason why the “Green Car Revolution” has stalled. It’s also why the current share of EVs on California roads has been stuck at 3% since 2014.
So far, most mainstream EVs (like the Nissan LEAF) are priced around $30,000. At that price, gas-powered cars still represent a better value, so only the most committed “green” consumers buy EVs.
Just how price sensitive are EVs?
In 2015, Tesla sold 50,000 electric cars -- but when they dropped the price from $100K down to $35K, they got 276,000 orders in just 48 hours. (As of this writing, they now claim 373,000 pre-orders for the Tesla Model 3.)
Lowering the price to $35K created a 550% jump in sales.
This validates what all the surveys have been showing… that is, there is a massive amount of pent-up market demand for EVs that will be unleashed as prices go down.
If a good quality EV could be manufactured and sold for less than $18,000 after tax rebates, there would quickly be mass-market adoption and possibly hundreds of thousands of cars sold.
So far, nobody has been able to do this. But we think we can.
Hi, my name is Dana Myers and over the last 12 years our team at Myers Motors built 2nd generation three-wheel electric vehicles and developed what one Department of Energy manager said was, “the lowest cost lithium battery system I’ve ever seen.”
For Myers EV, we have added automotive experts who have proven their ability to bring a new car to market, with proven yet revolutionary technology, for as little $6 million USD in Europe or as little as $30 million USD in the Unites States (you can meet them if you get the business plan). Extreme capital efficiency.
Even with this, you might be wondering, “How is it possible to make America’s first profitable EV when other big companies haven’t been able to do it?” There are two big reasons why we’re able to do this…
First of all, the EV we’ve designed is not a 1:1 replacement for a gas-powered car. Instead, our EV is designed to handle 87% of all daily driving jobs. That means our car is not appropriate for 13% of driving jobs.
You see, we’re not trying to go after everybody. We’re specifically targeting people who already have two or three cars and are looking for a fun, economical, environmentally friendly 2nd or 3rd car.
Think about it… we already buy specific vehicles to solve specific problems:
Most people drive their vehicles less than 75 miles per day for routine commuting and errands. Everyone needs to make longer trips occasionally, but if you could take your EV to work every day and around town, then drive your gas vehicle for those occasional trips, you could save a lot on gas.
Most trips are made with only one person in the vehicle. If you can use your personal EV for those trips and use a larger vehicle when you need to carry passengers, you not only save money on fuel, but can take advantage of special carpool lanes in cities where they exist to bypass traffic.
The majority of US households own more than one vehicle. The most cost effective and sustainable solution is an electric car for the short-range, low-occupancy trips and a gas car for the other 20%.
Of course, not many people actually buy small fuel-efficient vehicles for the 80% of trips that are less than 60 miles a day.
That’s because we’ve been conditioned to use cars that can carry five or more people… even though most of our daily trips are driven alone or with one other person.
We’ve also been conditioned to use cars that can travel 350+ miles on a single tank… even though we probably don’t drive that many miles in a single day more than once every few years.
What it comes down to is this: We’re buying “excess” car and using “extra” resources every single day… just in case we need to carry extra passengers or drive 350+ miles in a day… even though these scenarios are exceedingly rare. Robert Riley said it like this:
“Overweight and oversize cars and chronic underutilization of vehicles are the two most wasteful habits affecting the world’s consumption of transportation energy, of which about 95 percent comes from petroleum. Using vehicles that fit driving patterns would greatly improve vehicle utilization and significantly reduce the energy intensity of personal transportation.” (Alternative Cars in the 21st Century, p. 45)
Sixty-six (66) million households have two or more cars right now. And 21% say they want to buy an EV. That’s almost 14 million households.
We believe we can show them a better way to approach daily transportation. And we believe we can persuade thousands of people to make the switch to the type of EV we’re building.
During the time that we and another company built 300 EVs, we discovered that we can build “micro factories” in local markets to produce our vehicles.
By producing cars in areas where there is high demand for our EVs, we provide local jobs to local people, reduce delivery times, and save money at the same time.
The cost to build a traditional high-volume car manufacturing plant is $1 BILLION. To break even on this massive investment, traditional car makers have to sell at least 100,000 of a single model car.
Do you know how many EVs were sold in the U.S. in 2015? Total EV sales barely exceeded 116,000 cars – with 27 different car models by 12 different manufacturers.
This averages out to 4,296 cars sold per model – about 4% of the total volume needed to breakeven on a traditional manufacturing facility. Clearly, these numbers don’t even come close to supporting a traditional $1 billion car factory.
For contrast, the cost to build a micro factory, pre-sell enough cars to ramp up to profitability in our first year of production, and engineer and safety-certify that our car meets all U.S. safety requirements (airbags, crash tests, ABS, etc.) is just $36 million … 96% LESS than normal capital requirements. And the Department of Energy has a loan fund that may help pay for 50% or more of those costs.
Even better, breakeven on each micro factory is just 3,000 cars sold. Based on today’s EV market of approximately 116,000 units per year, we only need to capture 2.6% of the EV market share to breakeven. We are confident we can quickly reach and surpass this figure.
The reasons are simple:
Answer: They don’t really want to build electric cars. They are building them primarily to meet California’s demands.
It really is that simple.
With an almost entirely untapped market of 14 million families, the EV business is still in the early stages where tens or hundreds of millions of dollars are still to be made.
But unless something changes, traditional car makers aren’t going to lead the charge. It’s going to take a nimble startup like Myers EV to claim that space and profit from it.
Major carmakers who produce EVs at a loss so they can keep selling gas-powered cars in California. (A category we’ve already covered in depth.)
Tesla. Makes cutting edge EVs that seek to do everything gas powered cars can do and more. In spite of charging premium prices, Tesla still loses money on every car it sells.
Small start-ups that are currently making 3-wheeled electric vehicles to avoid compliance with safety regulations.
We’ve already shown the shortcomings of the first two categories. The biggest shortcoming is, of course, that they haven’t yet figured out how to manufacture an EV at a profit.
But what about this third category? What about the new EV start-ups that are producing 3-wheeled electric vehicles?
There is at least one company that has designed a 3-wheeled EV that is ready to go into production. In fact, we already did this. We and another company designed a 3-wheeled EV and built 300 of them prior to getting to where we are today.
We started with the Corbin Sparrow and developed the Myers Motors NMG; a single-person 3-wheel electric autocycle. About 300 were built, sold and serviced with relatively little invested. They continue to be a beloved vehicle by owners and press alike.
Others seek to follow in our footsteps and create affordable autocycles today.
But the 3-wheel form factor is not ideal in difficult road conditions and does not have the same broad appeal that a 4-wheel car will have to the general public.
We learned many valuable lessons by building, selling and servicing these amazing electric vehicles. Now we are ready to take that experience into the 4-wheel automotive market...
Betty bought her Myers Motors EV without a test drive, so she was delighted with how it handled. She said, “It has more zip on the highway than my Toyota pickup. It handles like a little sports car.” She also said, “I love being in the center of the cockpit. Getting back to my truck makes me feel like I’m in the wrong spot.” Betty expressed how fun driving her Myers Motors EV is, “It reminds me of how I felt when I was a kid and first got my license. Driving is fun again.”
Ron knows that the daily commutes are when drivers generate the most pollution. He never intended for his Myers Motors EV to replace his other car, but realized he could reduce the amount of pollution that he creates by driving it for single-passenger trips. Ron said that an additional bonus for him is the opportunity to “thumb my nose at the gas pumps.” He found that the trunk is a convenient size to carry home his groceries or other items from the store. Of course, he usually finds several people admiring his Myers Motors EV when he walks out to the mall parking lot.
Willie began driving his single person three-wheel EV to work about three times a week. Because it is easier to find parking for a small vehicle in a busy city like New York, he takes it for errands like banking or going to the hardware store or convenience store. Willie really enjoys coming up to the vehicle with his arms full of purchases because someone in the parking lot crowd will ask where he plans to put everything. Willie just smiles, clicks the remote control that he installed to open the trunk, and enjoys the looks on their faces as he stows his wares.
When asked about the cost, Paul said that buying the Myers Motors EV was well worth the money he spent. It requires very little maintenance, he enjoys driving it, and he likes avoiding gas stations. Paul also said, “I could spend four to eight times the amount of money for a high-end sports car and no one would take pictures of me or give me the reception they do when they see my Myers Motors EV.
Because he was already exploring environmental and alternative energy issues for work, Phil was aware of the economic, political, and environmental problems associated with driving a gasoline-powered vehicle for every trip. He drives his single person EV for most of his daily driving and feels silly driving his one-ton diesel van to work. It stays parked at home unless he needs to transport more people or gear than can fit in his Myers Motors EV.
Jake’s commute used to take at least an hour, sometimes an hour and twenty minutes because of Seattle’s rainy weather. Driving the single person EV in the HOV lanes has cut his trip down to half an hour, giving him five extra hours a week. Now, Jake gets home in time for dinner, something very important to him. To Jake, driving his single person EV means the difference between sharing dinner with his children or missing out on family time.
Even though it’s easier to produce, we do not want to be in the business of selling 3-wheeled EVs. Here’s why…
If the single wheel is in the rear (as it was on our 3-wheeled EV), the rear wheel slips all over the place in snowy weather. It’s hard to generate forward momentum. It’s also hard to stop the car from fishtailing.
So: Three-wheeled cars are harder to control in bad weather (even rain) and more likely to get into an accident.
More to the point, 3-wheeled cars are considered “motorcycles.” They don’t have to comply with government safety regulations and are therefore not as safe as their 4-wheeled counterparts.
If a 3-wheeled EV is more likely to get into accident in bad weather conditions… and does not have the same safety features as a 4-wheeled vehicle… what does that mean?
It means your risk of getting into an accident is higher. If you do get into an accident, your risk of injury is higher also.
Safety is the #1 reason why we abandoned our 3-wheeled EV. For EVs to reach the mass market, they need to be as safe as regular cars. That’s why we are now bringing our 4-wheeled EV to market.
This is why we are positioned to easily hit our 3,000-unit breakeven mark and eventually DOMINATE the U.S. electric vehicle market.
|Average US Car||Myers EV|
(after EV tax credit)
|100,000 Miles of Fuel||+ $10,000||+ $2,400|
|Total Simple Cost||= $43,652||= $20,395|
|SAVINGS vs Average Car||—||($23,257)|
The average U.S. car gets 25 mpg and emits 19 pounds of CO2 per gallon of gasoline burned. Based on our three-wheel experience, the Myers electric car is expected to 5 miles of driving per kWh of electricity and the average CO2 emitted by electricity generated in the U.S. is 1.13 pounds.
|Total Simple Cost||CO2 Over 100,000 Miles|
|Average US Car||$43,652||76,000 lbs. of CO2|
|Myers EV||$17,995*||22,600 lbs. of CO2|
w/Home Solar Charging**
|$27,195*||0 lbs. of CO2|
* After $7,500 Federal EV Tax Credit.
** Estimated cost for adequate solar panels and batteries needed to daily charge car to rated range from empty.
• Standard Range: 75 Miles
(Optional up to 100 Miles)
• Top Speed: 75 MPH
• Energy Efficiency: 165 MPGe
• Overnight Charging from Standard 110 volt outlet
• Fast charging optional: 80% in 30 Minutes
• You and 1 Passenger or a full grocery cart of storage
• You and a set of golf clubs
• Time-saving HOV lane access with just the driver
• Generates less CO2 than a Toyota Prius, even when using coal-generated electricity. Zero CO2 when using electricity generated by solar, wind or hydro.
Tucker. DeLorean. Coda. Fisker. Tesla. No one has started a new car company in the United States in the last 60+ years and gotten to profitability. Why then should you take us seriously? Three reasons:
1. No one can compete head to head with today’s automakers building the kinds of cars they are building and succeed. The only way to succeed is to build a car they are not building, don’t want to build, and can’t build (because it would cannibalize their existing business). That is the car we are building.
2. No one can compete with the distribution system Big Auto has. By cutting $950 million or more from the cost of starting up our (electric) car company, we only need to start our sales efforts in one city or region and sell 3,000 cars. That gets us to profitability. Then we expand in that market to create a tipping point – and then expand to other cities / regions / countries.
3. A new drive train is not disruptive enough to overcome the incumbent advantages of Big Auto. Electric drive systems put into the existing 4- to 7-person cars and SUVs have not resulted in either profits or mass-market affordable electric cars. To succeed in this disruptive time for automotive, four disruptions are needed: 1.) a new manufacturing model is needed; 2.) new manufacturing technologies need to be deployed; 3.) a new distribution model needs to be rolled out; and 4.) a new kind of car needs to be created. That’s how a “David” like us gets to play on the Giants’ playground – and create a multi-billion-dollar business. .
In 1908, 125 companies were building the new technology of self-propelled “auto mobiles.” These cars were primarily sold to the wealthiest 1% of their day. Then one man decided the future of personal transportation lay in democratizing it by making a car that was “practical and affordable to the common man.” To accomplish his task, he had to use a manufacturing system no one else in the car business was using.
Henry Ford changed the world. He famously said, “If I had asked my customers what they wanted, they would have said, ‘A faster horse.’” Henry Ford didn’t build what people wanted; he built the Model T because that is what they needed – and that car changed the world forever by making personal transportation affordable for virtually everyone.
If you ask today’s automakers what consumers want, they will say, “An electric car that can go 300 miles on a charge, seats at least 4 people, and can be refueled in 5 minutes from any of a million fast-charging stations. Oh, and it should cost less than a gas car.” No one can make that car profitably and 95% of the infrastructure isn’t there.
And just like the people in 1908 didn’t dream up the Model T, so today’s customers are not dreaming up our tandem seat, purpose-built, electric car. But it is what they need, saving them more money ($23,000) than it costs to buy and drive it for 100,000 miles ($21,000) as compared to the average gas car. Our electric car is the Model T of the electric vehicle age. History is about to repeat itself. Don’t you want to be part of making history?