Electric Cars

Subaru's EV Ambition: High Spending, Low Returns

Stepping Up the EV Game: Subaru's Expanded Electric Portfolio

Subaru has dramatically broadened its electric vehicle offerings, now featuring three distinct EV models in its American fleet, a threefold increase from the previous year. This expansion is a welcome development for brand enthusiasts who have eagerly awaited more electric options from Subaru.

The Cost of Promotion: A Look at Subaru's Marketing Investments

The introduction of new electric vehicles has necessitated a significant boost in promotional activities. In the last financial quarter, from April to June, Subaru’s marketing budget for its electric models—the Solterra, Uncharted, and Trailseeker—was three times higher than that allocated for its conventional gasoline cars. This aggressive spending aims to raise awareness and drive demand for its burgeoning EV range.

Disappointing Returns: EV Sales Lag Despite Marketing Push

Despite the substantial financial outlay, the sales performance of Subaru's electric vehicles has fallen short of expectations. For instance, the company reportedly spent a staggering $9,650 on marketing for each Solterra sold during the April-June period. Similar high expenditures were observed for the Uncharted and Trailseeker, at $9,155 and $8,982 per unit respectively. In stark contrast, marketing costs for a popular gasoline model like the Outback averaged only $3,036 per sale.

Financial Impact: Declining Profits Amidst High EV Marketing Costs

The disproportionate spending on EV marketing without a corresponding increase in sales has taken a toll on Subaru's profitability. The company's operating profit plunged by 44% in the first fiscal quarter, dropping from $472 million last year to $263.2 million. Furthermore, US sales of the Solterra decreased by 21% in the first half of the year, while the recently launched Uncharted and Trailseeker models collectively achieved only about 2,500 sales by the end of June. Overall, Subaru's total EV sales in the US from January to June stood at just over 10,000 units, a mere fraction of its total vehicle sales, which also saw a 4.5% decline compared to the previous year.

Strategic Reevaluation: Adapting to Market Realities

Subaru's traditional approach is characterized by financial prudence. However, the current strategy of heavy investment in EV marketing, particularly after the discontinuation of the $7,500 federal tax credit for these vehicles, signals a departure from its usual cautious stance. The company has already acknowledged a $362 million impairment charge due to slowing EV demand and has postponed the production of its proprietary EV in Japan, indicating a need for strategic adjustments to navigate the evolving electric vehicle market.

In an era where electric propulsion is slowly gaining traction in the marine sector, a dedicated team of DIY enthusiasts has taken innovation into their own hands. A prominent YouTube channel, known for its creative engineering feats, has unveiled a remarkable custom-built electric mini jet boat, demonstrating the potent possibilities of repurposing electric vehicle technology for unique watercraft. This ambitious three-year project underscores a growing trend of individuals pushing the boundaries of electric mobility beyond conventional land-based applications.

The journey began with the realization that commercially available options for a compact, high-performance electric jet boat were virtually non-existent. Undeterred by this market gap, the creators behind the "Prop Department" YouTube channel embarked on designing and constructing their dream vessel from scratch. Their initial design incorporated a Tesla Model 3 motor, delivering a respectable 280 horsepower. However, their quest for higher performance led them to upgrade the powertrain significantly.

The team eventually transitioned to a meticulously customized Tesla Model S motor, which was fine-tuned to produce an impressive output exceeding 350 horsepower. This upgrade necessitated several critical modifications, including replacing two of the original battery modules due to faulty cells that limited power delivery under heavy load. An aftermarket Battery Management System (BMS) was integrated to oversee the reconfigured battery pack, with each custom module featuring liquid cooling, mirroring the sophisticated thermal management present in original Tesla units.

To further enhance the boat's performance, a custom stub shaft was directly fitted to the motor's output, bypassing the need for a traditional transmission and significantly increasing the final RPMs delivered to the pump-jet. The entire system is managed by an aftermarket controller board for the motor inverter, providing the builders with unparalleled control over the drive unit and circumventing the standard safety limitations imposed by Tesla's stock systems. While the boat currently utilizes a J1772 charge port, precluding fast charging capabilities, the project stands as a testament to the team's engineering prowess and dedication. The creators acknowledge that minor refinements are still in progress, but the vessel is already hailed as an exhilarating ride, possessing ample power for its compact size.

This handcrafted electric jet boat represents a significant achievement in personal vehicle modification and sustainable engineering. By ingeniously integrating advanced electric vehicle components, the creators have not only fulfilled their vision for a high-speed electric watercraft but also provided valuable insights into the potential of electric powertrains in novel applications. Their work demonstrates how passion and technical skill can overcome the limitations of existing commercial offerings, paving the way for future innovations in electric boating.