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A Historical Analysis of the American Auto Industry and Tesla Inc University of Vermont ScholarWorks @ UVM UVM Honors College Senior Theses Undergraduate Theses 2018 Charging down the Road: A Historical Analysis of the American Auto Industry and Tesla Inc. Bryce Dzialo UVM Follow this and additional works at: https://scholarworks.uvm.edu/hcoltheses Recommended Citation Dzialo, Bryce, "Charging down the Road: A Historical Analysis of the American Auto Industry and Tesla Inc." (2018). UVM Honors College Senior Theses. 228. https://scholarworks.uvm.edu/hcoltheses/228 This Honors College Thesis is brought to you for free and open access by the Undergraduate Theses at ScholarWorks @ UVM. It has been accepted for inclusion in UVM Honors College Senior Theses by an authorized administrator of ScholarWorks @ UVM. For more information, please contact [email protected]. Charging down the Road A Historical Analysis of the American Auto Industry and Tesla Inc. A thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Science Environmental Program & Honors College University of Vermont 2018 Bryce Dzialo Advisors: Curtis Ventriss, Professor and University Scholar, Natural Resources Brendan Fisher, Interim Associate Director, Environmental Program Robert Williams, Lecturer, Community Development and Applied Economics 2 Abstract th Electric vehicles have experienced waves of popularity since the early 20 century. This thesis examines the role of electric vehicles and automobility in the past, present and the future of personal transportation. Additionally, it brings together the history of the American automobile industry and the complex contemporary narrative of Tesla Inc, the young and ambitious auto manufacturer that exclusively builds electric vehicles. This analysis ends with a discussion on the author’s understanding of how a company like Tesla was able to come to fruition, how a similar path could be taken by a new or existing automaker, and what these narratives mean for the current age and future of personal transportation in today’s environmentally conscious climate. 3 Acknowledgements I would like to start by saying thank you to my parents, Curt and Kristen Dzialo, whose constant support and care was unwavering throughout my education. I will be forever grateful for your sacrifices, your attention, and your love. Thank you to Kelsey Oliveira, for listening to me talk about this project for the past two years. You encouraged me to work harder and to learn more than I ever could have without you. Thank you to each and every one of my friends who have read and critiqued this study. A special thanks to my “American history consultant,” Ben Kaliff and to my roommates, Andreas Panos and Chris Barry, for letting me keep the lights on late to work and for helping me laugh through this academic year. This study would not have been possible without the help of my thesis advisors, Curt Ventriss, Brendan Fisher, and Robert Williams. Thank you all for your generous commitment of time, energy, and mentorship. Thank you to the University of Vermont Environmental Program, The Honors College, and The Rubenstein School for providing me with the means to succeed both in this project and in my greater academic journey. 4 Table of Contents Abstract .......................................................................................................................................... 2 Acknowledgements ....................................................................................................................... 3 Introduction ................................................................................................................................... 6 Introduction Bibliography ....................................................................................................................10 Preface - History of Electric Cars in the U.S. ........................................................................... 11 The First Electric Cars ........................................................................................................................11 Finding a Niche with the Urban Wealthy and in the Cab Industry .....................................................12 The Electric Vehicle Company ...........................................................................................................13 The First Failure of The Electric Car ..................................................................................................14 The Modern Era: 1990’s-Now ............................................................................................................18 Preface Bibliography .............................................................................................................................21 Chapter 1 – The Auto Industry of the Analog Age .................................................................. 22 The Industry Takes Shape ...................................................................................................................22 Why Detroit? .......................................................................................................................................26 The Automobile and Sense of Self ......................................................................................................27 Sustainability of The Industry and the Rise of Environmental Concern ............................................31 Globalization and The Big Three ........................................................................................................34 Moving On From Analog ....................................................................................................................35 Chapter 1 Bibliography ........................................................................................................................38 Chapter 2 – Tesla and the Digital Age ...................................................................................... 39 Our Digital Present ..............................................................................................................................39 Cluster Based Economics ....................................................................................................................39 Tesla’s Beginnings ..............................................................................................................................41 Early Investments, Meeting Musk ......................................................................................................44 Building the First Tesla .......................................................................................................................46 Growing Pains .....................................................................................................................................47 Going Public ........................................................................................................................................52 Company Identities .............................................................................................................................53 The Role of Competition .....................................................................................................................54 Tesla’s Self-Preservation, The Modern Role of Elon Musk ...............................................................56 A Greater Purpose ...............................................................................................................................60 Chapter 2 Bibliography ........................................................................................................................62 Chapter 3 - Conclusion ............................................................................................................... 64 Chapter 3 Bibliography ........................................................................................................................71 Appendix ...................................................................................................................................... 72 Types of EVs .......................................................................................................................................72 EV Incentives U.S. and Abroad ..........................................................................................................74 Barriers to Use & Modern Disapproval of EVs ..................................................................................76 Capability and Range Anxiety ............................................................................................................77 5 Dirty Batteries .....................................................................................................................................77 Electricity Usage .................................................................................................................................78 Cost .....................................................................................................................................................79 Appendix Bibliography .........................................................................................................................80 6 Introduction “Knowing how automobiles are made, how they operate, and how they are used and knowing about traffic laws and urban transportation policies does little to help us understand how automobiles affect the texture of modern life. In such cases a strictly instrumental/functional
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