Which market do you believe will be more successful, Tesla in the United States or GM’s E100 in China? Defend your answer. THE RISE OF THE ELECTRIC CAR One of the most notable social trends affecting consumer behavior is the idea of going green. As climate change and environmental concerns increase in their seriousness and impact, consumers seek to buy green products that might help mitigate or combat the problem. In response, many companies are developing new green products—including electric cars. The first electric car actually was built in 1891, but it lost popularity when Henry Ford introduced the gaspowered Model T. Electric cars regained consumers’ interest as Toyota developed its Prius in the late 1990s. The original Prius actually was a hybrid, powered by both gas and electricity; its success prompted other companies such as Honda, General Motors (GM), Ford, and Chevrolet to innovate their own hybrid models, as well as some all-electric versions.

By the early 2000s, though, all the major automakers had terminated their all-electric programs. It was not until 2006, when Tesla Motors revealed its Roadster, that a modern version of the all-electric car became a distinct and appealing possibility.70 Tesla remains the gold standard for electric cars. The Model S all-electric sedan is the top-ranked ultra-luxury vehicle. Yet its high price has kept the brand from being a very widely purchased car. For example, a new Tesla Model S 75D starts at $75,700, and models with longer ranges without recharging start at $98,700.71 Even if more customers might want to purchase an all-electric car, few of them can afford a Tesla. In response, Tesla innovated a less expensive entry model, the Model 3, that starts around $35,000.7