The price drop, no doubt, will create a great incentive to consumers to own an EV. To me, the price drop is not an indicator to the failure of the movement. Rather, it is a pre-emptive move to gain market share ahead of Tesla Model X which is scheduled to release in early 2014. In addition, there have been evaluation of government incentive program to EV. Who knows when the subsidiary is taken away. In investors' point of view, to ensure long term success of EV push, they'd better get enough hens to lay eggs. Hopefully, the price cut will give enough reason for infrastructure development, i.e more charging stations.
... are motivated by pride, not reality. Pride in the need to be right.
GM over estimated the size of the early adopter market and the premium that people would be willing to pay. At issue as well, is they were asking a significant premium for a car that is a compact and lacking the status of "Status Symbol". If this had been first to market before the Prius was cool, they probably could have gotten away with it, but in some ways it shows some maturity in the tech that it had to sell exclusively on its merits.
Any customer doing an ROI analysis would realize unless they did 30 miles each way to work and charged at each end, then they would not achieve the savings required to justify the car. Take $5000 off and that starts to make sense a lot earlier.
I am tempted ... can almost justify it and if gas keeps going up well ....
Absolutely. No matter how much we want to "Save the planet", we probably aren't going to pay a bunch more for a car that is lacking in one of the most important features of transportation (distance).
These latest versions have been impressive in their ability to rival gas powered vehicles for daily use, but many people still have a bad taste in their mouth and visions of 30 mile maximum distances in their head.