I agree that the limitations of range & capacity aren't a bad thing when using such an EV only for the purposes of short-distance commuting. But if I'm going to be limited in that regard, and will therefore need a second vehicle to fill the gap in my transportation requirements, I'm not going to spend $20K or more on that EV. If the cost of gas is enough to cause a family some hardship, that sort of expenditure isn't likely to be within their budget. I'm thinking somewhere from $10K - $15K would be more reasonable for the average consumer, but not yet economically or technically feasible for manufacturers - thus my statement that EV/battery technology hasn't "caught up" to economic reality yet.
Plus, that Tango model isn't exactly the best-looking car on the market today. I mean, efficiency is well and good, but would it kill the manufacturer to hire a decent design team? Why can't we have an EV that looks like this?
I feel an article coming on ... "Is an Electric Vehicle Worth It?" It might have to wait until a couple of them are readily available, though
Well, you can get some preliminary info from the cost of the vehicle and the Well-to-Wheel efficiency tests over at the Watt podcast. Even if you don't care about the actual thermodynamic efficiency and wanted to go by cost, you can convert that over to kW-hours of electricity at the rate you pay locally (and you can get it cheaper off peak if you have your electricity metered by time of day) to figure out the "fuel" economics. You could even throw solar into the mix and figure out how long it would take a set of solar panels for charging your car at your house and the price differential of the car to pay for themselves vs. a standard car.

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RE: Making the Middle East Less Important
I guess it depends from where you're coming. In my shopping for an electric vehicle, I never wanted something that could become the only car in the family - only as a commuter/short-tripper that would be in addition to our Honda Accord. From that perspective, the 80 mile range, 1-2 person capacity, and other limitations don't seem so bad - especially when you compare them to the EV current competition.
I think that if the right incentives were offered, I would definitely buy an EV commuter for under $20k. I don't think the incentives would have to be extravagant, either. If the state would forgo sales tax and if the city would allow free parking, free access to the HOV lanes, and free tolls, that would be about all it would take. (Free tolls alone would probably save me 5-10 minutes a day on my commute.) The feds would also step in with income tax breaks as a bonus, no doubt.
Another thing that I think could help EVs catch on is the possibility for customization. I can't imagine it being very difficult to upgrade the battery when the time comes for replacement after 50k-80k miles. I also think it would appeal to buyers of the highly customizable Scions and Honda Civics. The readily available electric outlet would also no doubt lead to all kinds of setups inside the vehicle - without the battery hookups needed in ICE vehicles.
Also, from an economical perspective, replacing even 50% of the commuting vehicles only would be a huge step in reducing (if not completely removing) dependence on foreign oil. (I feel an article coming on ... "Is an Electric Vehicle Worth It?" It might have to wait until a couple of them are readily available, though.)
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