Why Tesla's Battery Swap Makes Sense

I've never been a big fan of the battery swapping model, and it was one of my many criticisms of the Better Place business plan.  The basic concept of a quick swap was sound but the execution always seemed to have a number of details that could not easily be addressed.  Additionally the actual need for swapping capability seemed limited.  Once again Tesla has thought a few steps ahead, dealt with those potential issues, and created a system that may prove to be useful.  First of all, unlike BP, Tesla had an existing successful business model that was not at all dependent on battery swapping, but they built the capability into the Model S, and X, from the beginning.  This actually makes some sense from a manufacturing standpoint, on the assembly line you need to be able to quickly install a pack with machinery for high volume production, so you might as well make it able to go both ways.  This makes any potential service much easier, and it also makes any future pack upgrades easier as well.  What Tesla has introduced is a giant battery pack vending machine, allowing current and future Model S and X owners a quick and easy way to future proof their vehicles by installing the latest and greatest battery pack when available, or at least swapping in a larger pack for the occasional longer trip.  For now they will simply supplement the supercharger network in heavy use areas and allow travelers to swap out their depleted pack for a full one.  Or not.  Elon has said they will install them to meet demand, and the choice will be free supercharging for 20 minutes or so, or paying $60-$80 for a 90 second swap.  It's an interesting experiment to see what people will actually choose.

The Final Nail

It's all over for Better Place.

Electric car company Better Place is planning to file for bankruptcy within the next several days,

http://finance.fortune.cnn.com/2013/05/24/exclusive-better-place-to-file-for-bankruptcy/

... the company underestimated the time and expense of everything...

Nothing else need be said.

Another Nail In The Better Place Coffin

The little support that Better Place has continues to decline:

Ghosn says he isn't confident that consumers will embrace the concept and will likely prefer the simplicity of a single rechargeable battery in their vehicles, Energi Watch says. So far, the feature hasn't been much of a selling point for Renault, which has sold about 2,000 Fluence ZEs. Compare that to over 50,000 Nissan Leaf sales since the model's debut in late 2011.

http://green.autoblog.com/2013/05/03/carlos-ghosn-says-no-more-battery-swap-cars/

Hopefully this poorly conceived idea will eventually be put to rest and we can move on.

Operator Error, NY Times vs Tesla

In a recent NY Times article  a reporter borrowed a Tesla Model S and ran it out of charge, forcing him to be towed.  One might jump to the mistaken conclusion that this is proof that EV's and specifically the Tesla Model S simply can't work.  Indeed, that may be the case, for some people, including that reporter.  For example, if you are the type of person who would take a long trip without filling the gas tank in their ICE, and then subsequently did not add fuel when the opportunity presented itself.  That in effect is exactly what this reporter did.  He failed to fully charge the car to start with, he failed to add enough charge when he was plugged in at other times, and he failed to plug the car in when he was stopped overnight.  The car was perfectly capable of making this trip if it had simply been used as designed.  From what others have said he was about 14 miles away from a charge point when he ran out of power, which never should have happened.

To be fair to the reporter Tesla did not instruct him properly on the operation of the vehicle and in truth some Tesla employees seem to have given him some bad advice on how to extend the range.  This blog points out a number of steps that could have been taken which would have resulted in a successful trip.

The bottom line is you need to know the operating parameters of any tool you are using, especially automobiles, and especially if it's one which is different than anything you have used before.  Even so, on average 10,000 people run out of gas in the US each day, but that's not worth reporting.

Growing Demand For Tesla

A number of people are attempting to claim that although the Tesla Model S is an amazing vehicle that seems to be winning every possible automotive award and pleasing the majority of customers, demand is going to drop off and Tesla won't have an expanding market for the car.  Even when faced with the reality of an almost sold out 2013 production run and increasing reservations some people insist that once the early adopter consumers have had their orders filled interest in the vehicle will drop off.  One thing they fail to realize is that this car is a marketing juggernaut that is selling itself now that is being released into the wild in ever increasing numbers.  There is no simple data that can explain the phenomenon, but I keep running across the experiences of Model S owners that paint a clear picture.  These quotes are just a small sampling of what can be found at the Tesla Motors Club forums:

At NO TIME in my fifty years have I seen those with McLaren experience come together with Prius owners and agree on spending $50K to $100K on a car. That simply does not ever happen and yet it has happened. Dogs sleeping with cats. Soccer moms driving rocket ships.

 After having my S for 2 weeks, it blows the doors off of any car I've either owned or driven previously. Luxury, speed, smoothness, space, responsiveness. Nothing compares.

 Ultimately, the Model S made for an easy proposition to pay above my original price-point to essentially make no compromises. Cool tech, no gas, space, luxury, and performance. This was all before I actually drove one! Once I had an oppotunity to drive one it was a serious no-brainer for me.

FWIW - I have tried HARD to find another car that excites me as much as the model S and I just can't find one.

 I've been in Los Angeles for the past three days, where the presence of high-end ICE's is about as good as it gets. I drove by the Ferrari and Lamborghini showrooms a few times and on the road the number of BMWs and Audis is countless. As much as I love and admire these cars, I kept getting the sinking feeling that their breeds are are not long for this world. It might be like how forward-thinking people riding horses felt when the first Model T's appeared. They probably recognized that the old ways were going to die.

Sure, these cars will remain. But they will become oddities of a kind -- collectors items to be admired as the pinnacle of a day gone by. The Model S is the future, ICE's are the past.

 I've driven pretty high-powered, RWD, good handling stick shift cars for my entire adult life.

The Model S is unique blend of driver's car and practical sedan. Even leaving out the eco-friendly/high-efficiency aspect, this car has no equal.

I can get better handling in a Ferrari or Porsche. I can get equal throttle response in a supercar like a McLaren. I can get a comparably comfortable ride and comfortably carry 5 adults in many big luxury sedans. I can get the same amount of cargo room in SUV's and some big sedans/wagon.

To the best of my knowledge, the only place I can get all of that in one car is the Model S. Period. To get that, I'll gladly put up with the 265 mile range and the lack of some features. Especially because it's pretty clear that the electric drivetrain is what lets Tesla put all those features into the one car.

 I think what is interesting is that tesla has attracted new buyers to the luxury car market, people like me who have never even test drove a luxury car.

 Everyone is totally blown away that has never heard of Tesla!!!
I am constantly having drivers behind me at stop lights aiming phones at me (and occasionally in front of me hanging out of a window and facing backwards!)

 I was dropping off a friend at MIA today, and pulled up to the curbside at departures. The skycap looked at the car, seemed intrigued, and then peeked inside and nearly flipped out. He called over some other skycaps, and before I knew it the entire skycap staff was looking at the car, taking pictures and video. I fielded a lot of questions. One of the skycaps said, "I've seen every type of car possible at my curb, and this is the nicest one I've ever seen." I thanked him. He went on to say, "Man, I mean 50 Cent was here the other day and this is nicer than his car!" I said, "Seriously? I beat Fitty???" "Most definitely," he replied. A large woman who appeared to be the supervisor came over to see what the commotion was, and she looked inside too and was apparently pretty impressed. "Are you married?" she asked.

 The other day a guy made about 3 full revolutions around my S by changing lanes and speeding up and slowing down to get shots of me with his smartphone.

And on and on and on, this is just a small sample of the ownership experience.  Tesla owners describe something called "Tesla Time", where you must leave extra time when making trips to answer questions from an admiring and inquisitive public.  At this point there are around 3000 Tesla Model S sedans on the road, in the US and Canada.   What will be the likely outcome when there are thousands more of them on the road world wide?  Does this in any way seem like a shrinking market that will only be populated by early adopters?  Place your bets.  I have.

Better Place Gets Worse

The downward spiral continues for BP:

Following a difficult year, the departure of the founding CEO, and new fund raising efforts, electric car infrastructure company Better Place has been laying off hundreds of employees in Israel...

http://gigaom.com/cleantech/report-better-place-laying-off-hundreds/

Ouch.

Conservatives Should Support The EV Tax Credit

I often hear people say they don't want to support EV development and that the $7500 tax rebate offered for the purchase of an EV is taking "their" money.  In essence this is true since all government funding comes from the tax base that we all pay into.  For Tesla's 20,000 Model S vehicles they are projecting to produce next year this amounts to around 50 cents per US citizen, and is a drop in the bucket compared to other tax breaks that some individuals and companies get but others do not.
However I'd argue that the outrage is entirely misplaced for those conservative, and libertarian, individuals and does not fit with one of their basic philosophies.  Supposedly one of their large concerns is too much taxation and too much misuse of those funds by big government.  Following that logic any program which allows even some citizens to hold onto their tax money and get it out of the hands of government should be seen as a good thing.  Who knows how better to spend that money than the people who earned it?*
Another aspect of the rebate that seems to bother them, especially in the case of Tesla, is that the rebate mostly goes to the wealthy, which makes it even worse.  However, isn't that the basis of trickle down economics, and the supposed reason they oppose increasing taxation on the rich?  Allow them to keep more of their money and they will buy more stuff and create jobs with it, right?

In truth I suspect the anti EV rebate talking point is something they use without much thought in an attempt to support their inherent anti-EV bias.  It's not rational and does not even mesh with their own philosophies.  I will point out that there are some conservatives who do support EV's and do understand the benefits of the tax credit, unfortunately they seem to be under represented.

My own feelings on the topic are that I'm quite willing to see the EV tax credit go away, one second after all the other much larger tax loopholes are filled.  I'm waiting....


*Actually I'd argue against that concept since many people squander their cash with complete disregard for financial responsibility and the rest of us are left to pick up the pieces, but that's another topic.

Winning!

The awards keep coming for the Tesla Model S:

http://www.motortrend.com/oftheyear/car/1301_2013_motor_trend_car_of_the_year_tesla_model_s/

The mere fact the Tesla Model S exists at all is a testament to innovation and entrepreneurship, the very qualities that once made the American automobile industry the largest, richest, and most powerful in the world. That the 11 judges unanimously voted the first vehicle designed from the wheels up by a fledgling automaker the 2013 Motor Trend Car of the Year should be cause for celebration. America can still make things. Great things.

http://www.automobilemag.com/features/awards/1301_2013_automobile_of_the_year_tesla_model_s/viewall.html

 We weren't expecting much from the Tesla other than some interesting dinner conversation as we considered "real" candidates like the Subaru BRZ and the Porsche Boxster. In fact, the Tesla blew them, and us, away.

Of course, practically every new car claims to be revolutionary. But this one actually feels like it is, to the point that many of us were reaching outside the automotive lexicon to describe it. "It reminds me of the first time I used an iPhone," gasped associate web editor Ben Timmins.

http://ca.autos.yahoo.com/news/2013-yahoo--autos-car-of-the-year--tesla-model-s.html

 the Model S may not be a rocket to outer space, but it is the most significant automobile to land on our roads in many a moon.

http://techland.time.com/2012/11/01/best-inventions-of-the-year-2012/slide/the-tesla-model-s/

I expect more to come.

1000th Model S Body Produced

Saw this little update on the TMC forum and had to post it:

V proud of Tesla team for completing 1000th Model S body. More cars made this month than entire rest of year pic.twitter.com/k8XWaEth

1000 Model S Bodies

A nice milestone, especially in the face of the supplier issues Tesla has been struggling with.  Here's hoping the suppliers can get their shit together and help Tesla keep building their revolutionary Model S.

The Hits Keep Coming For Better Place

The downward spiral continues as BP founder Shai Aggasi is tossed out and BP talks about major layoffs.
Uh-Oh

Following Shai Agassi's unexpected resignation last week as CEO of Better Place, officials of the electric car infrastructure company said Wednesday the firm could soon face layoffs of as many as half its workforce, thought to number 400 to 450 in Israel.

 Doesn't seem like such a great place.

Who could have predicted that a business model that does not build EV's, batteries, or generate and sell electricity, and makes the overall cost of owning an EV more expensive, might not be a good idea?  That would be me.
http://ephase.blogspot.com/2012/04/more-problems-for-better-place.html
http://ephase.blogspot.com/2011/07/truth-about-better-place.html
http://ephase.blogspot.com/2011/06/goshen-on-project-better-place-not-for.html
http://ephase.blogspot.com/2011/03/better-place-fairy-tale-crumbles.html
http://ephase.blogspot.com/2010/12/project-better-place-exposed.html

Quality Is Job One, At Tesla

Tesla's plan has always been to start out with low production volume, one car a day, to carefully check vehicle assembly and catch any issues early in the game before too many vehicles are delivered and it becomes more difficult to fix any problems.  This is exactly what they have been doing.  Apparently there were some problems with the quality of chrome on the door handles so they switched suppliers, which caused a slight delay.  There was also an issue with a sensor, that also caused a recent delay, but that too has been addressed.  Detractors of course jumped on these minor issues as a sign of Tesla's failure, but in reality they simply prove that Tesla is handling things in the best way possible.  People are getting their cars and loving them, and reviews have been very enthusiastic across the board:

Having driven the Tesla Model S on the neighborhood roads back-to-back not only against most of the other electric cars in the market today, but also comparing it against other premium cars such as Rolls Royce Corniche, I came to this startling conclusion: The Tesla Model S is so superior that it seems that it's just a matter of time until all the other car companies will have to file bankruptcy.

 Production rates are increasing, and while they may not hit the year end target of 5000, it really doesn't matter in the long run as long as they can eventually achieve a rate to allow the planned 20,000 cars next year.  There is still time to hit the 5K mark this year, and I wouldn't bet against them doing it.  They seem to have gotten fairly good at doing what supposedly can't be done, I expect them to continue.  Now I'm just looking forward to the planned announcement of the supercharger network that is supposed to entail more than what people are expecting.  Should be interesting.

First Tesla Model S Delivered

First Tesla Model S all electric sedan delivered to the first customer, 2 weeks ahead of schedule.  What's not to like?

Many thousands more to follow.

Are EV's Victims Of Their Own Potential?

EV sales have been somewhat lower than expected and many are claiming this to be proof that the concept is flawed and the technology cannot work.  In truth this may simply be the result of the expected and likely future improvements that are going to take place, and that we have come to expect from modern technology.  Most people don't buy the first iteration of any new technology, be it computer, cell phone, flat panel TV, iPod, or iPad.  They know that waiting a few months to a few years will bring better and cheaper products, which is equally true for EV's.  There are always early adopters who must have the latest and greatest, and they pay a premium to do so.  Since a car is a larger investment than a cell phone or a flat panel display the population of early adopters is of course going to be smaller.  The difference that is often ignored is that early adoption of an EV can actually provide reduced operating costs during it's use, putting it's overall costs more inline with cheaper ICE vehicles.  Also overlooked is the ability to upgrade an older EV with a newer, better pack in the future, giving better than new performance.  Regardless, people know they will get better and cheaper with time, battery improvements and breakthroughs are not only expected but seem to be announced every few months, even though it will take time for them to make it into production.  The car companies themselves talk about future improvements to their vehicles, with longer range and lower prices, but by doing so they probably hurt potential sales in the present.
I'm not sure there is a solution to this problem other than time.  At some point, as with all new technologies, the entry price point will be low enough and the perceived value high enough that people will start to adopt it in large volumes.  In the mean time those of use who paid the higher prices, or put in the time to build our own, get to take advantage of the lower operating costs and get to enjoy the smooth, quiet driving experience, as well as the visceral pleasure of driving past gas stations and not caring about the price per gallon.

Why is this man smiling?  The answer is on his shirt.

More Problems For Better Place

More bad news for Better Place, losing money as well as failing to deliver as promised. 

Shay Agassi's electric car venture Better Place LLC is facing delays in the deployment of its battery recharging and quick replacement infrastructure in Denmark as well as in Israel.

 Renault SA (Euronext: RNO), which directly markets its electric car in Denmark, has announced that it will launch the Zoe compact electric car in October. It considers the Zoe more suited to the Danish market than the electric version of the Fluence sedan, which is not popular in the country. Renault also announced that, until further notice, it will market the Zoe only with a permanent battery, rather than the replaceable battery "until Better Place proves that its organization and battery replacement system are functioning properly."

http://www.globes.co.il/serveen/globes/docview.asp?did=1000740448

  Better Place was expected to sell 115,000 electric cars in Denmark and Israel between 2011 and 2016, but the company is far behind those numbers.

http://www.greenprophet.com/2012/04/better-place-loses-millions/

Oops, who could have guessed?  Oh wait, me!  :)

Where GM Went Wrong With The Volt

From most accounts of those who own one GM built a really nice vehicle in the Chevy Volt.  Customer satisfaction is very high, though you'd never know it from all the negative press surrounding the vehicle.  Most of the problems that are causing poor sales of the Volt have to do with the GM marketing department, not the engineering and production departments.  GM tried to sell their plug in hybrid as if it was an EV, while at the same time pushing range anxiety and "more car than electric", which backfired when people thought the Volt was a 40 mile "EV" that cost $40K.  GM also made a mistake by marketing it as a Chevy product.  What they should have done is market it as a Cadillac, an upscale plug in hybrid, throw in a few extra luxury bits, and charged an extra $5-$9K for it.  In short they should have made the "Volt" the "Converj" right from the beginning.

Cadillac Converj

The Cadillac brand could have handled the price premium better, and the styling is a little more aggressive and exciting.  By not pretending to be an EV much confusion could have been avoided, along with much negativity.  People would be less inclined to criticize a $45K+ vehicle from Cadillac than a $40K vehicle from Chevy.

Of course what they really should have done was build the real EV that Bob Lutz initially wanted to in the first place, but once that idea was scrapped they should have positioned it as an upscale luxury hybrid and badged it as a Cadillac.  Next time GM, check with me, you could have avoided this whole mess.

The Karma Is Not An EV

He's not driving an EV either.



In a previous post I explained why the Volt is not an EV.  For all the same reasons neither is the Fisker Karma.  It's a plug in series hybrid.  It has enough battery to provide about 50 miles of electric range, then the on board generator kicks in, providing electrical power to the motor, but unlike the Volt, the gas motor never drives the wheels directly.  It's a less complex setup, which is good, but in this particular design it creates a less efficient vehicle, which is bad.  The Karma is heavy and not particularly efficient when running from the generator.  Considering it's price tag it also does not have exceptional performance specs, the Tesla Model S is cheaper, faster, more efficient, and an actual EV.
The Karma is a beautiful car, unfortunately it's not all that exceptional beyond that, and it is not an EV.  Maybe at some point they can pull out the gas motor, add enough batteries to improve the performance and range, and create a real EV. 

Weak Anti-EV Arguments Collapse Under The Weight Of Reality

The anti-EV crowd has been working overtime trying to come up with different ways to discredit EV technology and slow it's inevitable adoption as an efficient choice for transportation.  It's somewhat amusing to watch them twist themselves into pretzels and various other uncomfortable shapes as they attempt to spin every possible scrap of information into a thread of support for their untenable position.  People who obviously don't care about CO2 emissions constantly squawk about coal power, people who previously claimed that hybrids such as the Prius were nothing but green washing now tout them as a better solution to our oil usage than EV's, people who pretend to be patriots ignore the benefits of using domestically produced electricity over foreign oil,  and people who think we should use natural gas fail to comprehend that it's better to use this limited fossil fuel resource in large generating plants to charge EV's instead of wastefully burning it in inefficient individual ICE vehicles.  They look at the state of current technology, including battery chemistry and power generation, and assume it will not and cannot improve, even though it has been and will continue to do so.  They talk about limited resources as if that only applies to EV's and not other forms of transportation as well.  They imagine EV's putting additional load on the grid while ignoring vehicle to grid technology that would allow a fleet of plugged in EV's to actually help support the grid when needed, including storage of excess solar and wind power.
It's a worthwhile exercise to question the effects of widespread EV adoption but it must be done with an open mind willing to consider all aspects, not simply limited to one's personal preconceptions and existing conditions.  Today's EV's can take advantage of tomorrow's cleaner and smarter grid as well as the growing volume of home generated wind and solar power.
EV's have the potential to deliver on an unrealized promise of personal transportation by allowing us not only to go where we wish but also to control the energy we use from power we create ourselves, free from the monolithic fueling infrastructure controlled by oil companies and OPEC.

The Volt Battery Issue, Much Ado About Nothing

The media and the anti EV crowd have been getting quite worked up lately about the Chevy Volt battery pack and perceived yet unrealized dangers from fire.  Two Chevy Volts were parked in garages that happened to burn down, just as happens to many ICE vehicles every year, yet in the Volt cases blame was automatically placed on the hybrid vehicles, presumably because they are something new.  However in both cases the Volts and their batteries were found not to be the source of fires.
Then in May NHTSA ran a side impact test on a Chevy Volt.  This test consists of sliding a vehicle sideways into a solidly mounted pole which totals the vehicle.  The Volt passed the test for occupant safety.

Three weeks after the test, which damaged the battery pack, the pack caught fire.  (Interestingly when the same test is done on conventional ICE vehicles the tank is drained, probably because NHTSA doesn't want gasoline flying all over it's facilities.)  This seemed to be an isolated incident as other tests done by other organizations did not result in any fires.  To further investigate NHTSA ran more tests on Volt battery packs, bare packs not in a vehicle.  The packs were penetrated, further than in the original crash test, then rotated to simulate a rollover.  In the first test nothing happened.  In a second test there was a temporary temperature increase initially, then a week later this pack caught fire.  In a third test the pack smoked and sparked but did not catch fire.  At this point it seems that leaking coolant for the batteries can cause some short circuiting if the pack is not drained after a severe accident.  There have been no fires in actual use during a crash of the Volt, and NHTSA considers the Volt to be a safe car which has a 5 star crash rating.  GM is working on some upgrades which will further protect the pack and address this battery issue which would only happen in extremely rare circumstances.
There are over 200,000 vehicle fires a year in the US, all of them ICE vehicles, yet because the Volt is a new product people are trying to paint it as more dangerous than it really is.  Any vehicle has risks, any energy storage container, be it battery or fuel tank, has the potential for mayhem, and nothing can be made completely safe.  However, in the real world, the Volt has proven to be safer than most other vehicles on the road, and with the planned upgrades it should be safer still.  I'd be much more concerned with the Volt's gas tank in a crash than it's battery pack.  The LEAF, an EV with a larger, but air cooled battery pack, has had no issues in any crash test or real world accidents.  Nor have any of the crashed Tesla Roadsters, with even larger yet liquid cooled packs.  At this point EV's are proving to be statistically safer than ICE vehicles, as I would expect, and that trend is likely to continue.

Related:
NHTSA
Coolant cause of shorts
Battery Upgrades
Vehicle Fires

Moore's Law For Batteries, Don't Count On It

Some people have expressed an opinion that we will see a Moore's law for batteries.  I think this is unlikely for two basic reasons:  We've seen no such thing to date and batteries are not computer chips.  Moore's law states that the density of transistors which can be put on an integrated circuit will double every 18 months, and so far it has held true.  This has led to faster computer power and lower costs for electronics.  What we've seen in lithium battery advances has mostly been steady advances of 5% a year with occasional jumps.  I do expect we'll see more dramatic advances in the future as the sheer volume of research on the topic is increasing and none of the current chemistries are near their limits, to say nothing of future chemistries.  Battery development is akin to squeezing a balloon, one end gets smaller while the other end bulges larger.  Batteries have four parameters that need to be optimized, energy density, power delivery, useable life, (cycle and calendar), and safety.  In batteries when you optimize for energy density you tend to decrease longevity, if you optimize for power you lessen energy density, and so on.  The key is of course getting all these into one package, and ultimately at an affordable price, which really adds a fifth parameter just as important as the other four.  It doesn't matter how good a battery is if it can't be produced at a reasonable cost.  Unlike computer chips most of the costs of batteries are the high purity materials that must go into them.  Advances come by using those materials in better ways, by finding better materials, and by improving the construction process.  This mostly comes from constant research, trial and error, and tweaking and optimizing assembly lines to improve production yields.
A lot of work is being done in the field and there are very promising developments being announced on a regular basis but none as of yet has made it to market in an affordable product.  I expect at some point some of them will and we will see a major jump in all battery parameters, but don't expect a steady doubling of all parameters every 18 months.  Of course I'd be quite happy to be proven wrong in this case.

Is It Time To Restructure EV Subsidies?

Obviously I'm a strong proponent of electric vehicles and I think subsides for their development are necessary and money well spent.  However that doesn't mean we can't improve the way that money is distributed.  Specifically addressing the vehicle purchase rebate I don't think we need to subsidize vehicles such as the Fisker Karma, a $90,000 plug in hybrid vehicle with poor efficiency.  Frankly I'm not even convinced we should continue to offer purchase incentives for vehicles over the $50,000 dollar mark, which would include the Tesla Model S.  It's an awesome vehicle that needs no support other than what it is and it's target purchasers really don't need the financial incentives.  I think it can stand on it's own, and the money can be better spent on building out the charging infrastructure and driving the development of lower priced EV's.  We should reward efficiency by tying incentives to some relationship between vehicle watt hour per mile energy use as well as it's overall cost.  This would push manufacturers to get more mileage out of smaller battery packs by using better aerodynamics and lighter weight materials.  While the LEAF is a good EV it's drag coefficient is too high, as is it's weight, and consequently it's range suffers a bit.  We need to rethink and redesign the automobile to get the most out of our battery packs, the single most expensive component.  Jamming in a huge battery pack is fine for an upscale luxury vehicle such as the Tesla Model S that can absorb the cost but obviously mass market vehicles cannot do the same, nor is that a sustainable and efficient way forward.
With the current political and social climate pushing for reduced government spending and an increasing attack on "green" products it's hard to justify giving tax breaks to people who really don't need them.  If EV's are seen as toys for the rich it's going to be difficult if not impossible to continue to get funding for battery research and charging infrastructure development.