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A Guide to Electric Vehicles


No longer simply a trend, electric vehicles (EVs) have become firmly entrenched as an automotive category and only continue to rise in popularity. Legacy automakers are increasingly pivoting into the electric market, with brands like Audi, Volvo and Mercedes-Benz offering a full range of EV models.


If you’re considering an electric vehicle or want to learn more about how they work, below is a guide to the benefits and features you can expect.

Automotive Offers

As a Reserved Living & Giving member, you can save on the purchase or lease of new cars from Volvo, Mercedes-Benz and Audi, including their range of electric vehicle models.

Electric Vehicle FAQs

How do electric vehicles work? Electric cars work by using a battery to store electrical energy that powers an electric motor. This motor converts the energy to propel the car's wheels. Electric cars do not rely on burning fuel to generate power. Instead, they capture and store energy through charging and regenerative braking.

How are electric vehicles charged? EV batteries are charged using either alternating current (AC) or direct current (DC) electricity. While electricity from the grid is delivered as AC, present-day battery systems will only accept DC electricity, which is why all EVs have an AC/DC rectifier on board to convert AC power to DC. If you’re considering installing a charging station at your home, you have two options:

  1. Level 1 charging is delivered via a standard domestic wall socket using a cable that is supplied with most EVs. It looks like an extension cord, but one end connects to the vehicle’s charging port.
  2. Level 2 charging is a dedicated EV wall charger that will take things up a notch with its higher charging capacity. These are similar to what you will find at public charging stations, which are typically found in car parks and shopping centers.

How long does it take to charge at home? Charging times depend on a few factors, including the charging equipment you use, the battery’s initial charge level, and the level you’re after. Keeping your battery charged above 20% and only charging up to 90% can help reduce charging times and protect the battery's health.

How far can electric vehicles go on a charge? Several factors impact the distance an EV can travel on a single charge, including its battery size, speed and the weather. The faster you drive, the more you use your climate control—and colder temperatures can drain your battery faster. On average, EVs can drive between 110-300 miles on a charge.1

Audi

The Benefits of Electric Vehicles

Zero Emissions: The environmental benefits of electric cars are some of the most compelling reasons to purchase an EV. Since you won't have an exhaust system, you're doing your part to improve local air quality.

Renewable Energy: While EVs are efficient on their own, they have the potential to draw their power from renewable sources like wind and solar, magnifying their environmental benefits.

Reduced Maintenance: Not only can you skip your morning gas station stop, but owning an EV means no more oil changes or other similar service visits.

Quieter Drive: Another often overlooked benefit of electric vehicles is noise reduction. EVs are nearly silent, simultaneously reducing noise and air pollution.

Performance: If you've considered an electric car but are worried about performance, think again. The near-instant torque and incredible output that EVs provide means you'll leave gas-burning models in the dust.

Tax Credits: You may be eligible for up to $7,500 in tax credits when you purchase a new qualifying electric vehicle and up to $4,000 for used qualifying electric vehicles. You may claim the credits yourself or work with your dealership for a corresponding discount.2

What to Do Before Buying an EV

Prepare Your Garage: While charging stations are becoming more common, they aren't ubiquitous just yet. With that in mind, you might want to equip your garage with a charging station to ensure you can power your daily drives. You can select between a Level 1 and a Level 2 charging station, which you'll want to have professionally installed.

Map Out Local Charging Stations: Knowing where you can find rapid charging stations is a great way to fuel up fast without missing a beat. Companies like PlugShare can help you plot out local chargers so you can power your EV battery while running errands or traveling longer distances. Throughout 2024 and 2025, Tesla is opening its network of 15,000 Supercharging stalls across North America to other automakers. This will require automakers to adapt their charges to be compatible with Tesla charging stations, either by providing adapters or modifying the built-in charge ports entirely. General Motors, Ford and Rivian have currently made the transition, with Volvo, Nissan, Polestar and Mercedes-Benz coming soon.3

Test Drive

If you need help determining whether an EV is for you, consider renting one on your next road trip. Car rental companies like Hertz, Dollar, Avis and Budget offer a fleet of electric vehicles to choose from. Test them out and hit the road!

Sources

1 https ://afdc.energy.gov/files/u/publication/electric-drive_vehicles.pdf

2 https://www.energy .gov/save/electric-vehicles

3 https://www.tesla.com/NACS

Disclosures

This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Information contained herein has been obtained from sources considered to be reliable. Morgan Stanley Smith Barney LLC does not guarantee their accuracy or completeness.

Morgan Stanley Smith Barney LLC is not implying an affiliation, sponsorship, endorsement with/of the third party or that any monitoring is being done by Morgan Stanley Smith Barney LLC (“Morgan Stanley”) of any information contained within the website. Morgan Stanley is not responsible for the information contained on the third party website or the use of or inability to use such site. Nor do we guarantee their accuracy or completeness.

© 2024 Morgan Stanley Smith Barney LLC. Member SIPC.

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