This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Charger Congestion a Problem for Electric Cars

Stocks in this article: TSLA GM NSANY

In a Chevy Volt, a full charge from zero takes four hours on 240 volt. On this full charge, you can drive an average of 38 miles before the gasoline engine kicks in. Coincidentally, at that point the Volt can run an average of 38 miles per gallon of gasoline (the car takes 9 gallons), so it makes our math easy: In California, a gallon of premium now sells for $4.40. Therefore, one hour of charging the Volt is equal to $1.10 of gasoline-equivalent value ($4.40 divided by 4).

Let's say someone charged you $1 per hour to "fill" your Volt with electricity on a 240 volt circuit. At that rate, you might as well just not bother, simply going to the gasoline station instead, since the price is approximately similar.

As you can tell from this, it might not be easy to bother charging someone for electricity per se. Are you really going to bill someone for well under 50 cents for stopping by for 30 minutes while shopping?

What's the moral of this story? We need a very large number of electric car chargers in order to serve the 100,000 to 125,000 incremental cars that are being sold in the U.S. just this year. However, you basically can't charge people for the electricity, because it's such a small amount per charge, and because people driving plug-in hybrids can always price-arbitrage against gasoline. Someone else will have to pick up the bill, whether in terms of general parking garage fees, advertising, or some other economic incentive.

Yes, it has come to this. With "only" 70,000 electric cars on the U.S. roads, several electric car charging stations are now congested, and the situation is becoming more acute by the day. If nothing is done about this looming calamity, the U.S. electric car market risks grinding to a screeching halt.

It is really amazing how quickly the goal posts, and the pain points, are shifting in this fast-growing industry.

At the time of submitting this article, the author was long TSLA.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs