Published: 07/12/2018

Tesla 3: Your Next Fleet Car?

Electric Cars: Tesla 3 Leads The Way?

It’s already been branded as the most important car in history, and from a fleet vehicle perspective the Tesla 3 could be just that. Electric cars could offer a host of advantages for fleet managers – from cheaper fleet insurance to improved reliability and lower costs per mile. Historically, however, these advantages have been outweighed by the practicalities of range, limited availability of models and the cost of electric vehicles. If Tesla are true to their word that could all be set to change. In this latest blog from Getaquoteinsurance we’ll get under the bonnet of the Tesla promise, look at what the 3 and other electric cars could offer fleet owners in terms of benefits and consider an electric vehicle future. 

Tesla 3: What We Know So Far

As a company Tesla are notorious for being stingy with details of their new cars, but with the 3 they have been rather more forthcoming. The key details from a fleet driver’s perspective are:

  • It has a range of 215 miles on a single charge – a huge improvement on the current best-selling electric car, the Nissan Leaf, which can manage 155 miles
  • It has a 5-star safety rating
  • It will do 0-60 in under 6 seconds so it’s no slouch
  • It has Supercharging capacity which gives 1,000 miles of free charging per annum
  • It comes with Tesla’s Autopilot self-drive technology
  • The basic model will cost around £24,000 – that puts it bang up against the Ford Focus, the UK’s second most popular fleet car of 2016 according to Pendragon Vehicle Management
  • It will our streets in 2019
  • It looks amazing

Why It Matters To Fleet Managers

There a number of reasons why fleet managers and drivers should be excited about this car, some of which are listed below, but the most striking thing has to be the range. 215 miles on a single charge is a very respectable range – that will take you from London to Norwich and back – and if a driver puts it on charge when not in use, say whilst in a meeting, then it could be the most practical electric car we’ve ever seen.

Of course, there has to be more an electric vehicle than just range. If it was simply about how far it would go, we’d all just continue to drive diesel fleet cars and be done with it. No, there are significant advantages to them including:

  • Emissions that are up to 40% lower than standard cars – with the government looking to create clean air and with cities such as London looking to become zero emission zones by 2025, this could mean significant tax savings
  • Fuel costs – according to a recent British Vehicle Rental and Leasing Association (BVRLA) report, electric cars cost between 2p and 4p a mile to charge (based on cars doing journeys of around 100 miles per day). This compares to around 12p per mile for the equivalent diesel car
  • Capital allowances – currently there are enhanced capital allowances available for electric fleet vehicles. These mean that companies can relieve the cost of an electric car or van against taxable profits in the year of acquisition. These grants can mean up to £5,000 off the cost of the car and allowances of up to 75% are also available toward the cost of installing a charging point
  • Fleet insurance costs – insurance costs are obviously a big concern for any fleet manager. At present, given the newness of the market and the level of uncertainty as to what could go wrong with electric cars, costs are slightly higher than for standard fleet insurance. That said as adoption grows and more insurance companies offer electric fleet insurance, so these costs will come down fast. The best thing to do if considering electric car insurance is to talk to an insurance specialist such as the team at Getaquoteinsurance on (01482) 434343.

Do Fleet Drivers Want Electric Vehicles?

Demand for the Tesla 3 looks set to be huge. They have already taken many more orders than it expected for the Model 3 – and it’s already raised $1.7 billion to meet this unexpected demand. They plan to have a monthly production of 20,000 cars by December 2017 and when it arrives in the UK next year they are hoping to exceed that figure significantly. Demand for electric cars has rocketed in recent years, from 3,500 in 2013 to more than 100,000 by May 2017. The combination of savings, environmental concerns and their overall improved quality and range is making them the car of choice for more and more drivers, so it seems unlikely that the fleet user-choosers would be any different.

What Barriers Remain To Electric Fleets?

Tesla’s new car is a massive step forward in terms of electric cars and could genuinely pave the way for a fleet revolution. There are, though, some barriers that are yet to be overcome, the principle ones being:

  • Charging point availability – they aren’t on every street corner as yet and in rural areas they may take time to appear. That said, it’s predicted that by 2020 there will be more charging points than petrol stations
  • Range – 215 miles is good, but many drivers will need exceed that
  • Cost and vehicle choice – £24,000 is a good price point and will make many fleet buyers think long and hard about their lists. It’s still quite a lot though and many fleets will still look to conventional models, such as the UK’s most popular fleet car the Corsa, as a more affordable option. The number of models available is also relatively small
  • Availability – in the case of Tesla this is a real issue. When launched in the UK next year, this car is predicted to have a waiting list of at least a year

Electric Car Fleets: Coming Soon? Oh Yes…

The Tesla brings the idea of electric fleets from ‘maybe’ to ‘almost certainly’. Given the cost benefits of electric fleets to companies large and small, the government grants, the environmental benefits, the improvements in technology and wider public acceptance of electric vehicles, it seems clear that electric fleets are on their way, and sooner than we may think.

Like To Know More About Electric Car Insurance?

If you would like to know more about electric vehicle insurance or would like some help getting the fleet insurance that’s right for you, then please contact us by calling us free on 0800 977 6037, email us by clicking here or get a no-obligation fleet insurance quote here.