Tag Archives: automobiles

Tesla Cybertrucks Get Delivered (Finally)

After more than four years since it was first announced, and two years behind the original production schedule, the first dozen or so Tesla Cybertrucks were delivered at a launch event held Nov. 30 in Austin, Texas.

Why is Tesla launching an electric truck? The truck market is considered the most profitable part of the U.S. auto market. The largest manufacturers are Ford, General Motors, and Stellantis (Ram trucks) and all three now have electric trucks of their own on the market. 

How big is the market? These three sold nearly 1.7 million pickup trucks at prices that can reach $100,000. But only two percent of pickups sold in the U.S. were electric, and electric trucks were only 3 percent of the electric vehicle market.

The Cybertruck design is a distinct departure from other trucks; it has a stainless tell body and sharp angles

Even behind schedule and with full production not yet ready to roll, Tesla has more than one million trucks reserved ($100 refundable deposit). However, the original expected price of $39,900 has increased to $69,900 with a top of the line vehicle priced at $99,990. The target market is likely to be well-to-do technology fans and collectors, not fleet operators such as construction companies or businesses that need to modify the truck bed.

Shall we go for a ride?

Group Activities and Discussion Questions:

  1. Show video of delivery event: https://youtu.be/cX58W4_5hmw?si=nGx35Km85ZFJfv85
  2. View Tesla Cybertruck website: https://www.tesla.com/cybertruck
  3. Discuss the importance of clearly defining a target market.
  4. For the Cybertruck product, what is the target market?
  5. Divide students into teams and have each team develop a profile of a target market for Cybertruck. Include demographics, psychographics, behaviors, values, attitudes, etc.
  6. Based on the target market profile, what makes this product unique for these customers?

Source: Ewing, J. (30 November 2023). Pickup or lunar lander? Tesla’s Cybertruck enters a crowded market. New York Times; Kolodny, L. (30 November 2023). Elon Musk hypes Tesla Cybertruck at deliveries event in Austin. CNBC; Krisher, T. (1 December 2023). Tesla delivers first Cybertrucks. Associated Press; other news sources.

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What Hurts EV Sales?

The shift to electric vehicles (EV) sure seems to have slowed way down. According to research from company CarGurus, EV inventories are not only up 506% from a year ago, they are on the lot an average of 82 days compared to 64 days for gas-powered cars. Sales are down, but why when reducing emissions and being environmentally sound are so important to consumers?

Well, prices of EVs are still a factor, even though prices have been cut by Tesla and other manufacturers. The average EV list price is 28% higher than a gas car, and with interest rates near 8%, a new EV costs more than $200 more per month. New EV buyers also need to install at-home chargers for roughly $2,000. However, EV tax credits may help the situation when, as of January 1st, buyers can get up to $7,500 EV credits upfront, plus some states also have tax credits for new buyers.

But one of the biggest concerns revolves around charging stations, especially when taking road trips away from the home charger. Sound infrastructure for charging stations is still an issue. According to Pew Research, Americans are not very confident that the necessary infrastructure will be built in order to support a large number of EVs. While 17% think are confident that it will happen, 53% are not very confident.

The Wall Street Journal tested 120 charger stations and found problems ranging from different ports on different cars and charging stations, to broken charger stations. Of the stations checked, 40% were broken with 27% being out-of-order, 10% with payment issues, and many more with connection issues (handshake between car and charging station).

Will you buy an EV?

 Group Activities and Discussion Questions:

  1. Poll students: Who plans to buy an EV after they graduate? Why or why not?
  2. Show video about public EV chargers: https://www.wsj.com/video/series/joanna-stern-personal-technology/how-bad-are-public-ev-chargers-i-visited-over-120-to-find-out/0CA1EEF7-79C4-4818-B876-899E4B2EFCCD
  3. Show additional research on EV viewpoints from Pew Research: https://www.pewresearch.org/short-reads/2023/07/13/how-americans-view-electric-vehicles/
  4. Divide students into teams.
  5. Have each team work on a promotional plan for EVs that accounts for the issues of price and/or charger infrastructure. What do consumers want to hear?

Source: Lee, M.(14 November 2023). Here’s why people aren’t buying EVs in spite of price cuts and tax breaks. USA Today; Sterns, J. (15 November 2023). How bad are public EV chargers? I visited over 120 to find out (Video). Wall Street Journal.

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Does Your Car Track Your Personal Information?

Privacy is a top concern of consumers. While on the one hand, we love it when companies can anticipate our needs and solve problems. However, on the other hand, we value our privacy and do not want to have our lives tracked by corporations. We realize that our online social media, shopping, and email communication can be tracked and we can act according to that knowledge. We still don’t want our privacy violated, but we understand the risk involved.

But… what about our cars? Huh, cars? Cars track our personal data? Yes. And not only do car manufacturers track a LOT of our personal data, they can also sell it – without our knowledge or permission.

As consumers, we expect companies to act in our interests when solving problems, but that is a common mistake. Corporations act in their best interest in the long run. Car buyers and drivers are given little or no control over all the personal data that cars track and collect. In addition, automotive security systems are also a concern when it comes to hacking.

Non-profit Mozilla Foundation researched 25 car brands to assess their security and data collection actions. None of the 25 car brands whose privacy notices were reviewed met even the minimum privacy standards. Furthermore, some automakers gather personal data not related to driving – including sexual activity, immigration status, race, facial expressions, weight, health, and genetic information. Additional data is gathered by sensors, microphones, cameras, and phones connected to cars.

What Mozilla found shouldn’t really surprise us. As car buyers, we don’t have many (if any) options as to the data the manufacturer can track about us when we’re in the car. Of the 25 brands, 19 of the companies’ privacy notices reviewed said they can sell our personal data. Half will share information in response to a “informal request” from government or law enforcement. Automakers were very vague about disclosing to whom they sell what data.

The worst three privacy violators cited by Mozilla were Tesla, Nissan, and Hyundai.

Who’s tracking you?

 Group Activities and Discussion Questions:

  1. Poll students: Do they know what data cars are gathering about them? And what the companies do with this data?
  2. Show video: https://youtu.be/KJ2NmIhYIlA?si=tf993ioIl8xDyPHu
  3. Show the Mozilla report: https://foundation.mozilla.org/en/privacynotincluded/articles/its-official-cars-are-the-worst-product-category-we-have-ever-reviewed-for-privacy/
  4. Divide students into teams. Have each team select an auto manufacturer and research the privacy statements made by the company.
  5. How does this present an opportunity for marketers?
  6. What could the company do to help protect the consumers’ privacy?

Source: Bajak, F. (11 September 2023). Analyst: Cars now ‘wiretaps on wheels.’ Associated Press.; Caltrider, J., Rykov, M., MacDonald, Z. (6 September 2023). It’s official: Cars are the worst product category we have ever reviewed for privacy. Mozilla Foundation.

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