GMO’s Jeremy Grantham just put out his latest quarterly newsletter to GMO clients. And in it he has some high praise for Tesla.
In a section titled “Fossil Fuels: Is Tesla a Tease or a Triumph?” he writes that he recently took a drive in a Tesla and it was his “#1 car experience ever.”
“I recently took a drive in a GMO colleague’s Tesla from New York to Boston. Now, I am about as far from a car freak as you will easily find. I just turned in a 12-year-old Volvo that unfortunately had been sideswiped, for otherwise it was good for years more. But I have to say that my recent Tesla journey was my #1 car experience ever.
“Three years ago I test drove a Tesla in Boston and it was a tinny, rattly, super-expensive toy. Its battery alone cost $US50,000! Last month, its chief engineers suggested its cost today is $US22,000. In three years they and other experts are confident that the battery will be less than $US15,000 and probably its weight will have fallen also. The Tesla feels like the $US75,000 vehicle it is and not simply adjusting for the fact that it is electric, but on its own merit.
“Many of you will know that this vehicle has a range of 150 to 270 miles depending on battery size and that it received two prestigious car of the year awards along with being given the highest crash ratings of any vehicle ever! Consumer Reports gave it the co-equal highest ratings in the magazine’s 77 years! Even more importantly for me, there was this series of what I can only describe as my first iPad moment: “Wow, that’s cool!” And cool it was as the extreme acceleration pushed me back into the passenger seat for the first time in my life, aided, it must be said, by an exuberant new owner at the wheel. We had enough charge to reach Boston easily, but out of curiosity and in need of a coffee break, we stopped to charge the battery at the one and only charging station halfway home. 20-five minutes later, we were back on the road, fully charged up. And for free! (Full disclosure: I regrettably have owned no shares in Tesla.”
Elon Musk should be pleased with that.