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What’s Tesla Doing to Counter Range Anxiety?

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Tesla Motors

Previously, we saw the five best-selling electric vehicles in 2014. However, barring Tesla’s Model-S and the Nissan Leaf, no other model in the top five is an electric-only model. They are essentially hybrid cars that can run on both electricity and gasoline.

In this part, we’ll explore what separates Tesla Motors (TSLA) from other manufacturers of electric vehicles, or EVs.

The iShares Russell 1000 Growth ETF (IWF) invests about 0.21% of its portfolio in Tesla. The fund also invests about the same amount in AutoZone (AZO) and in Delphi Automotive (DLPH).

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Range anxiety

One of the biggest challenges the EV industry faces relates to “range anxiety.” You don’t want to buy a vehicle that runs out of energy too soon, with nowhere to recharge the battery. Tesla has addressed this issue by offering a driving range in excess of 250 miles. Now, that’s more than twice the range offered by the nearest competitor, according to data compiled by CheatSheet.

Moreover, 250 miles is quite a decent range if you are into city driving. After all, how many of us drive more than that range on a daily basis?

However, if you are going on a long road trip, you might think the 250-mile range is too short. Tesla is trying to address this issue with its superchargers.

Superchargers

Superchargers are free connectors that Tesla has placed near strategic locations such as restaurants, shopping centers, and Wi-Fi hotspots as part of its Destination Charging program. The chart above shows some of the key features of these Superchargers. Globally (ACWI), Tesla has 498 stations with 2,804 Superchargers. The company is planning to install these Superchargers at several other locations in the next couple of years.

In the next part, we’ll continue to explore Tesla’s Destination Charging program and its marketing strategy.

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