In our course we’ve been doing a lot of work regarding the Tesla electric cars. However, there are also plenty of other brands. But is it a stable market? Is it reliable? According to the article, Paul A. Eisenstein made a research in the electric car market.

Most of the electric car companies are suffering from low demand. In order to increase demand, they are trying to reduce prices. Ford has been able to reduce its price to $9 000. Among other companies that are cutting prices is Chevrolet, Volt plug-in hybrid, Honda Accord plug-in, and Mitsubishi i-MiEV battery-electric vehicles. However, Tesla hasn’t decreased its price from its already expensive vehicle (as we already know, Tesla is a premium expensive fully electric car). If such large companies have the need to reduce their prices in order to increase demand, does this mean that market of electric cars is not that popular? I think yes. I like the idea of electric cars, it is environmentally friendly and it will probably help us save the Earth and keep it clean for a longer period time. Unfortunately, as data shows this market is currently unpopular. People prefer to buy gasoline cars than electric or hybrid.  Electric cars can be a second car in a family, nonetheless, not all families are that rich, and they simply can’t afford such expensive and inconvenient car.

So, why are such big and successful companies entering this market? Firstly, according to Paul A. Eisenstein, there is special law in California called Zero-Emissions Vehicle mandate, which was very interesting and new for me. This law encourages every big manufacturer to produce “green” vehicle. Second reason is, in my opinion, that companies are desperately trying to involve people to an idea about sustainability and saving environment. Even though they probably have losses from selling these cars, they hope to be rewarded within next few years to come.