Electric vehicles are being built because governments are mandating that automobile manufacturers build and sell electric vehicles. However, that does not mean consumers will buy those high-cost vehicles, particularly when the attributes of electric vehicles, which include low vehicle range and limited trunk space, cannot compete with those of petroleum-fueled vehicles. This means electric vehicle manufacturers are building vehicles the public is not interested in and are losing revenue as a result. For instance, Tesla Motors, an electric car manufacturer, recently indicated they would not earn a profit until 2020, two to three years later than expected. Low oil prices are exasperating the problem for electric vehicle manufacturers because consumers are purchasing roomy, powerful and safe petroleum-powered vehicles such as SUVs and pick-up trucks instead of government sanctioned electric vehicles. Additionally, the New York Times recently reported that electric vehicles retain the lowest resale values – at around 20 percent of purchase price – at the end of 5 years.[1]
