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Electric cars are great but...

Right now the Tesla Model S is setting the benchmark for electric vehicles.

Despite the predictions of naysayers, Elon Musk's brave and bold move into the EV market has resulted in a very practical, high performance car with an incredible 400Km range and the convenience of a family sedan.

Aside from one pyrotechnic incident, the Model S has also proven itself safe and reliable, factors that have contributed to brisk sales producing over half a billion dollars in revenue over the last quarter alone.

Wow... what a success story. What could possibly go wrong?

Well the one fly in Musk's ointment is the fact that, despite all the hype and apparent customer satisfaction, Tesla Motors is yet to make a profit in the four years since its inception.

Despite churning out a respectable 550 cars per week, profit remains elusive and with some more hefty R&D costs about to be incurred, there's little chance that situation will change in the near future.

So at this stage, the Tesla Roadster and Model S may be technological success-stories but they not exactly a commercial success.

Fortunately, Musk, his co-investors and shareholders seem to be looking at the long-game and it's not unusual for many companies to spend quite a few years in the red before they turn their first profit. Heavy tooling, R&D and other set-up costs often take years to recover although in a market where technology is changing very rapidly, companies on the bleeding edge always run the risk of never covering their R&D budgets as they try to maintain a lead on competitors.

Tesla also now faces the huge cost of setting up a wider network of charging (supercharger) stations around the USA. To be truly viable, the Tesla EVs must have access to quick, convenient and ubiquitous charging or they will be relegated to the role of commuter vehicles.

This is perhaps one area where Musk may not have thought sufficiently ahead.

Our house has an LPG-powered hot water system that uses the common 9Kg cylinders. When I need more LP I have two choices...

I can take my cylinder to the local filling station and wait around until the attendant has time to pop it on the machine then fill it with the precious liquefied gas. Sometimes this is a rather slow process -- somewhat akin to recharging your EV.

The second option is the one I prefer. I simply drop into Bunnings where the man takes my empty cylinder away and hands me a new one. All done in a minute or so. Fast, efficient and I never have to worry about my cylinder's certification expiring.

I believe this will also be the future of recharging EVs.

Sure, you'll be able to plug your EV in and recharge it overnight when at home but when on the road you'll simply drop into a recharge station where your entire battery pack will be removed from the vehicle (a 20 second job) on a trolley and a freshly recharged pack will take its place.

Instead of waiting for your own battery to be recharged, you'll drive off with a different battery containing a full charge and... because it's a swappa-battery, you'll never have to face the horrifying cost of replacing a worn-out battery at some time in the future.

Given the massive difference in price between petrol and electricity, your EV will still be cheaper to run even though you're effectively "renting" the battery.

Perhaps it's time for the SAE or someone to get involved right now and establish some standards for swappable EV batteries. Obviously it's not going to be practical for "Joe's Garage" down the road to carry swappa packs for every make and model -- to work, this system will require modular batteries made to a consistent form-factor and electrical specification.

If I was Mr Musk, *this* is where I'd be pouring my R&D dollars right now.

Remember, if you build an EV, you only make money when you sell a new one.

If you make and rent the modular batteries and own the standard to which all must conform, you make a buck every time someone "fills up".

I know which ticket *I* would rather be clipping!

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