Sorry, Tesla; Looks Like Golf Carts Are the Emerging Automotive Pioneers

The electric car manufacturer Tesla has created quite an uphill climb according to many, including researchers at Harvard Business School. They believe themselves to be the company that will turn the auto world upside down, but many disagree. Even though they have had the best overall vehicle (the Model S) two years in a row, their vehicles are too high priced for Average Joe to afford. This simple fact puts them at a deficit when it comes to making big waves in the auto industry.

Even with Tesla’s plans to roll out a vehicle in the $35,000 price range, some say it will still not be enough to take down traditional car makers. This has largely to do with the author of The Innovator’s Dilemma, Clay Christensen, who explains in his well-known book that disruptive technologies begin as inexpensive contributions that are unremarkable, and then regularly improve. Businesses that use this method tend to become the heavyweights. Unfortunately, Tesla took the opposite tack, and that very well may be what costs them the title.

This tactic is usually referred to as “disruption from above.” Currently their best vehicles cost upwards of $100,000, and they are trying to move down into affordability. This may simply take too long to accomplish, which leaves the door open for alternative market disruptors. After all, starting from the bottom and working your way up is much easier than starting from the top and working your way down. Just ask Tom Bartman, a research fellow who believes true disruptors are typically on the outskirts of an intended market and overlooked until it’s too late.

So, what does he think will wreak havoc on the automotive world long before Tesla meets the needs of the masses? Low-speed electric cars, better known in the United States as street legal golf carts. With more than 200,000 sold in 2013 alone, it’s no wonder he sees this as the real threat. Just to give you an even clearer picture, Tesla sold under just 22,500 cars in 2013, making golf carts the clear up-and-coming industry innovator. They are minimalistic, and have an excellent price point, currently costing between $2,000 and $12,000. They are unremarkable and inexpensive: the two things that qualify them to be big game changers.

Why Are Low-Speed Electric Vehicles Becoming So Popular?

Many people may be wondering why there is such an uptick of sales for this type of vehicle. Why now, and how can they possibly compete with cars? The answer is quite simple, for many; it’s the best option. The alternatives are riding a bike, driving a moped, walking, or catching a public bus, all of which are relatively slow, so a golf cart doesn’t lose points for only reaching a maximum of 25 miles per hour. Their popularity is easily flying under the radar because no one is looking at them as actual competitors.

They aren’t being discussed in big cities; they aren’t being covered in huge magazines. The most coverage they get is when travelers post pictures on Instagram of locals in small cities around the world getting to and from work and running errands. Low-speed electric vehicles are a blip on the radar, but they are filling a universal need, and, if companies don’t start paying close attention, they will become the standard, and everything else will fall by the wayside.

Are There Drawbacks to Low-Speed Electric Vehicles?

Yes, of course there are. As with anything that’s starting at the bottom, there will be a few drawbacks. For instance, in the United States a street legal golf cart must have all the same safety measuresas a regular car, including insurance and DMV registration; on the flip side, countries like China have yet to implement these standards. These vehicles can only reach a maximum speed of 25 miles per hour, a full battery on most will only allow for 60 miles of travel, and they typically take between 2-8 hours to fully charge. These three stats prove they aren’t the right option for everything. Highways, long trips, a quick charge: none of these are possible right now; however, as previously stated, industry pioneers start around mediocre, at best, but grow into powerhouse game changers.

Where Will the Golf Cart Take You?

For now, a street legal golf cart in the United States or a low-speed electric vehicle in China will take you on short trips around your neighborhood. A trip to the grocery store up the road, a quick drive to a friend’s house party, running errands within a few miles of your home: These are all possible with the current golf cart models, and if these makers continue to invest in this product, it will only continue to grow and get better, gaining the attention of more customers. 

Sorry Tesla, Looks Like Golf Carts Are the Emerging Automotive Pioneers

Tesla may have cornered the market for expensive electric cars, but street legal golf carts are the smart electric automotive choice for everyday use.