One of the new and emerging technologies in the automotive landscape is electric cars. Tesla is a new and popular company which has become the poster child for the new generation of electric cars. Additionally, Nissan is making headlines with their new Leaf car. A recent Wall Street Journal article by Joseph White sheds light on some of the problems facing this new segment of the market.

Firstly, the range numbers reported and advertised by companies such as Tesla and Nissan come purely from their own engineers and EPA standards for gasoline powered cars. Tesla reports that their Roadster gets 245 miles on a charge and Nissan reports 100 miles per charge, but these companies like to use phrases such as “up to” when reporting these numbers. The EPA is beginning to develop new formulas for standardized electric car mileages but they will most likely force manufactures to reduce their claims by 30%. White argues that these companies must accept new EPA standards because they are much better than the public seeing electric car owners stranded on the side of the road.

The second major hurdle for electric cars to overcome is infrastructure to support electric charging. Currently there is little of this infrastructure in place but companies like Better Place are attracted massive contracts and government backing. Better Place already has charging stations in Israel and Denmark and has plans for a system in Hawaii. The problem, however, is that investors would rather put their money into developing electric infrastructure in countries with very high fuel prices. The United States has simply too cheap of gas to motivate investment.

I have to disagree with Mr. White. These limitations will not be a big problem for electric cars. Just like hybrid owners, the people who buy first generation electric cars are doing so more as a statement than a purely economic decision. Secondly, I doubt the lack of charging stations will be as big of a problem as the articles makes it out to be. Most people will charge their cars at night and not go on long road trips with these vehicles. The average commuter travels much less than most assume and could easily go to and from work with one battery charge. While owners of electric cars will face several challenges, the industry has to remember that many of these first generation buyers understand these limitations and are not buying these vehicles for economic reasons.

http://online.wsj.com/article/SB10001424052748703834604575365244247963772.html?mod=WSJ_Autos_LS_Autos_5