Electric Vehicles for Commuters

I just had the pleasure of speaking with Rick Woodbury, CEO of Commuter Cars. Rick and his highly pedigreed team of auto designers and strategists have assembled a business plan surrounding the Tango, the small and unique commuter car. There are numerous write-ups floating around on the subject – most notably those on EV World — that I won’t try to paraphrase. In my mind, the facts are simple, and besides, the picture here tells the story quite well:

A super-quick, fun-to-drive NHSTA-approved EV needs to be designed from the ground up, at the considerable expense that one would associate with such a project. The car will meet the needs of commuters who will be asked to pay a premium over an ICE-equivalent for a narrow, short, two-person car that they can maneuver through stop-and-go traffic and park easily (parallel or even perpendicular to the curb).

Other quick details:

a) The Tango is the only enclosed and protected vehicle in the world at this time that can lanesplit, i.e., drive between lanes of stopped or slow-moving traffic, legal in California and most of the world for motorcycles, some of which are 5-inches wider than a Tango.

b) Tandem 2-seater, only 39-inches wide and 8-foot 5-inches long; the same width as a police Harley, and 5-inches narrower than a Honda Gold Wing

c) Most of its weight (batteries) is under the floor, providing a static rollover threshold equivalent to a Porsche 911.

d) With over 1,000 ft lbs of torque, and a zero to 60 acceleration in under 4 seconds, it can out-accelerate most supercars.

Obviously, the demand for such a vehicle has yet to be established. In fact, one could argue, it would be impossible to ascertain such demand with any accuracy, since the car represents disruptive technology; it’s SO different than anything available today that it’s hard to imagine the value of a focus group or quantitative market research effort in pointing to a reliable assessment of actual consumer acceptance.

I think it’s obvious that commuters outside of places like New York City, Washington DC, Boston, San Francisco, Los Angeles, Paris, London – etc. will have little appetite for the car, considering that its price – even with a good economy of scale in production, will be unlikely to be under $25,000. I’ll grant that it’s a blast to drive, but the real appeal is the convenience of a far faster commute, and much easier parking once that commute is over. This is a proposition that seems quite real to me for those in extremely congested areas. But the company is left with the challenge of selling this idea to investors with some fairly deep pockets and willingness to take significant risks.

I enjoyed Rick’s bright mind, his optimism, and the fact that he wasn’t in the least put off my “devil’s advocate” questioning. “Oh don’t worry about that,” he quips; “I’ve heard far worse.” Rick points out that, if a significant number of Tangos were deployed, the entire volume of traffic would decrease for everyone. Of course, I noted, this in and of itself skirts the issue that people do not make purchases based on the welfare of the society. Fortunately, as Rick responded, the value proposition for the consumer himself is considerable: less time in his car commuting to and from work; that society wins too is a lucky side-benefit.

Some current customers who have well over $100,000 apiece for hand-assembled kits include George Clooney, and the Google Founders, Sergey Brin and Larry Page. Of course, that there are a few celebrity environmentalists who can afford to do anything they like does little to convince anyone of the ultimate market demand. Yet I have to agree that there are millions of people who deeply resent their commute, are looking for creative new options — and wouldn’t mind doing the right thing in the process if it proves to be possible. The Tango certainly fits the bill.