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January 21, 2016 06:00 pm

How Robotaxis Might Mitigate Electric Car Depreciation

Hallie Siegel writes: Autonomous car expert Brad Templeton argues that we're in for a period of about 5 years in electric cars where each year's new model is a lot better, and that could be a problem for people trying to sell them. Further exacerbating Moore's Law for cars is that autonomous features (like traffic jam assist) rely heavily on computers. Unfortunately cars cost a lot more than computers or cell phones, so throwing them away before the end of their lifespan is a bit of a problem. How do get over the depreciation problem while autonomous cars and electric cars are going through this period of rapid development? Templeton suggests that a taxi model could be the answer, since use is so much more intense that with a private ownership model, that the cars are likely to wear out before they become worthless from a resale perspective.

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