Better Place is on track to market what could be the world's most expensive economy car.
Jens Moberg, who runs Better Place Denmark, told the Guardian that the cars for its network will cost up to 200,000 kroner, or 23,080 pounds. That doesn't include the battery, which will be leased to customers. He wouldn't say how much the leasing fee would be, but said that a would cost 6,900 pounds to make in 2011 or 2012.
Together that comes to 29,980 pounds, or $49,476 U.S. Whew! At that price, it will be close to $10,000 more than the anticipated price of the General Motors Volt, $19,000 more than the anticipated tag of the Nissan Leaf (if the Leaf price includes battery – little unclear at moment), and only $7,500 less than the Model S from Tesla Motors. The Model S and the Volt, by the way, are also more luxurious types of cars.
That's even more than the Small Think City.
And don't forget, that's the low cost for the battery. The batteries could cost $12,000 to $25,000. Adding another $10,000 to the price kicks it over the Model S bar. It add ammo to the argument that maybe the numbers don't completely add up for Better Place. (Disclosure: I was an early complainer, thank you very much.)
Does this mean electric cars are doomed? No, customers love these things. The Model S already has a backlog of customers and the Leaf and Volt are gaining a lot of attention. I've even heard a line is forming for Think City's. Plus, in Denmark and other countries, electrics will be cheaper because they are exempt from taxes: even the Tesla Roadster is a bargain in Copenhagen.
And – who knows – I may have misunderstood Moberg's math. If Moberg included the battery lease in his price, the cost comes to $38,000: a little high but in range with most others. But I don't think that's what he meant. And if not, the price will be a tough hairball to swallow after the car makers sate the enthusiasts.
You might argue that the cost won't impact customers. Better Place, after all, says it will own the batteries. You just have to buy electricity from them as a service. But the company will have to make that expense up somewhere. Thus, you buy a car and sign a seven year lease, the best case scenario (12,000 battery and no profit or operating expenses to Better Place) you are going to have to buy $1,714 worth of electricity for your car. At 11 cents a kilowatt, that's a lot of time at the charging station.
Better Place also has large carrying costs. It plans to house batteries at charging stations for quick swaps. At $12,000 to $25,000 a battery, the company needs to own $1.2 to $2.5 billion worth of batteries for the first $100,000 customers not including the swap stations. 100,000 cars is not that many. 400,000 new cars get sold in the Bay Area alone each year. If 10 million Better Place vehicles were to hit the road, that would mean owning $120 to $250 billion in batteries.
Hmmm. Might make more financial sense to buy something cheaper and less likely to be stolen and dismantled, like the state of New Hampshire.
