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What does the person who has everything buy next? A golf cart. 

Why it matters: Sales are surging for low-speed EVs, and buyers want them for cachet as much as utility. 

The big picture: Street-legal carts have started gaining traction with wealthy families buying the vehicles for their vacation homes or as a third car in the driveway.

"We were B2B. Then we saw what was happening in some of these ancillary markets," says Luke Mulvaney, chief revenue officer of Waev, parent company of cart-maker GEM.

"With a little bit of investment, we could make ourselves a real player in this space."

GEM in 2021 began adding options like a panoramic roof, stitched-leather seats, high-end stereo system, eye-catching rims and wheels, and an array of paint schemes. 

The premium features have attracted a premium crowd.

"The low-hanging fruit is people buying GEMs for their destination homes, vacation homes, second homes," Mulvaney says. "The top tier of the market."

Now GEM wants to reach past the 1% — and ship more of its vehicles beyond the warm-weather destinations that have made up the bulk of its consumer market. 

"Doors, HVAC, the nice tires," Mulvaney says. "We're going to continue to position our cart closer to automobiles: an everyday type of vehicle that's not just for that top-end customer."

The only question: If we expect our cars to perform year-round, what do we expect from a premium low-speed EV?

1 big thing: A ride for the 1%, for now

A photo of a powder blue GEM e4 electric low-speed vehicle, parked on the side of the door.

The cubular, attention-getting GEM e4. Photos: Alan Neuhauser/Axios

GEM arranged for a fully charged e4 to be dropped off at my house last month in Rhode Island. 

It featured the optional doors, heat, defrosters — and, appropriately, the "Arctic Frost" paint scheme. 

I drove the blue bubble all over town, through the frigid night for takeout, and on snowy roads after a couple storms to see how a low-speed EV stands up to New England's elements. 

Drivers regularly slowed to look — including folks from the town's Department of Public Works, who stopped their dump truck in the middle of the street to climb down and snap pictures. 

Price as tested: $33,010 with the winter upgrades, plus long-distance AGM battery, premium seats, sound system, wheels, and other add-ons.

Range: 24-58 miles with conventional AGM batteries, or 40-106 miles with faster-charging lithium-ion batteries for an extra $6,000-$12,000. 

Charge time: About 7-12 hours to get from 0-100% with the AGM batteries depending on the battery pack size. The lithium-ion batteries can refill in 1.5-5 hours using a fast charger (or 9-13 hours using a standard outlet).

Smooth car-like acceleration and braking.

Fast-acting heater and defroster — plus the doors and panoramic roof turn the cabin into a toasty greenhouse in the sunshine.

Good available range, decent charging time, compatible with public Level 2 chargers in addition to standard outlets. 

Anything but the barebones model gets expensive.

Zero interior storage; no exterior storage without add-on.

Loud ride. The doors turn the cart into a small echo chamber.

Plasticky dashboard; ho-hum sound system. Even tricked-out with premium options, it feels utilitarian. 

Bottom line: $17,490 for a barebones warm-weather around-town rambler? Not bad. But $30,000-plus to be able to drive year-round, with little to any storage and an interior only a contractor could love? 

2. The BFD: Driving the e4

A photo of the interior of a GEM e4 low-speed EV, with a carton of milk strapped to the passenger seat.

The GEM e4 has limited storage and a barebones dashboard. 

The GEM team knows that its e4 is in need of sprucing up.

"I couldn't agree more," Mulvaney said when I shared my observations with him. 

What's happening: GEM's design choices for its 2024 model are partly tied to resiliency. 

There's no way that the company can compete with major automakers for parts, especially during any kind of shortage.

"We purposefully made our vehicles very simple, and used as much of the latest technology as off-the-shelf as possible, to make sure our parts supply is there," Mulvaney says.

The other big driver behind the e4's design is that its biggest upgrades are out of sight, tucked beneath the floors and behind the dashboard.  

GEM spent the bulk of its time and money improving its vehicles' electronics, overhauling everything from wiring harnesses to software to how well the carts navigate hills.

The idea is to get the fundamental platform right for 2024, and only then build from there. 

"We couldn't do infotainment the way we wanted to with our previous electrical architecture. Now we can," Mulvaney says.

The Anaheim-based company is now looking to make inroads with three core markets: 

Suburban families seeking a second car to take the kids to school and soccer practice. 

City dwellers who may not have access to an EV charger in their building's garage but can plug into any old outlet.

And folks in planned communities, which today means more than just the elderly. Think 55-and-over neighborhoods. (Hi, mom and dad 👋 )

Yes, but: Even as GEM swaps in a touch-screen or a higher-end stereo setup, it won't pursue more unorthodox designs like Club Car's CRU, which features a rotating banquette table in back. 

"LSVs are very simple on the inside on purpose," Mulvaney says. "We're definitely not in the business of making people think too hard."

3. Going mainstream by keeping it simple

A photo of a powder blue GEM e4 low-speed EV, parked in front of a coffee shop between large SUVs and pickup trucks.

The GEM easily squeezes into tight parking spots. Just make sure drivers see you as you reverse out.

Funny thing about low-speed EVs: they're apolitical. 

Do I have data to back up that statement? No. But hear me out. 

State of play: Low-speed EVs have gained the most traction in older communities in warm-weather states. In short: red regions of America.

That's allowed the vehicles to quietly become demystified and de-stigmatized, without getting caught in high-profile political fights over EV subsidies. 

"What do people argue about with electric vehicles?: 'We're not ready, the grid's not ready, there's not enough charging stations, you can't get across the United States,'" Mulvaney says. "None of those are issues for us." 

He's got a point: The only federal tax credit for low-speed EVs was enacted under President George W. Bush in 2008 and has since lapsed.

The intrigue: "We've been working with the federal government to consider GEM for some kind of tax credit," Mulvaney says.

He declined to elaborate but noted that GEM for now is going it alone. The company hasn't yet joined a broader coalition, such as the Zero Emissions Transportation Association in D.C., which represents most automakers.

"We truly believe that if our federal, state or local governments want to push for a sustainable future, this is the lowest hanging fruit to do it," Mulvaney says.

Between the lines: Neighbors who'd balk at buying a tiny EV like the Fiat 500e or Chevy Bolt were jazzed to see the street-legal EV.

And why not? It's more fun to look at and to drive. It carries none of the EV political baggage (fitting for a vehicle with neither trunk nor glove compartment). And its small battery uses fewer mined materials, an ethical and environmental bonus.

There's of course another type of vehicle that shares those qualities: a bicycle or an e-bike. 

But with so many towns designed for cars, including mine, tiny open-air EVs might be just the thing to speed America's transition to zero emissions. Especially if those rides come with optional doors. 

4. The purple people-mover

A photo of a bubble-like GEM e4 low-speed EV, parked on a suburban street in front of a house.

The GEM e4's optional bumpers are mostly decorative but add a rugged touch.

This week: the GEM e4, our latest in the growing category of "low-speed vehicles," "neighborhood electric vehicles," or less euphemistically, street-legal golf carts.

☃️ What we wondered: Whipping around Savannah or Tampa is one thing. How about Rhode Island in February? 

Thank you to George Moriarty and Chris Speckhard for today's edits.

And thank you for reading Climate Deals! Please share with your friends, family and the cart-curious.

March 30, 2024

1 big thing: A ride for the 1%, for now