As American cars and trucks continue to bloat, growing longer and wider decade over decade while roads and parking spaces stay the same size, there may be hope glimmering on the horizon: tiny electric vehicles. I’m not talking about small cars. I’m talking about tiny ones – micro-cars, if you will.
They’re a small but growing category of motor vehicles in the US, and they may just save us from a future of massive, energy-guzzling vehicles that can somehow plow through a playground without noticing yet still struggle to wiggle into a parking spot.
This is Part 1 of a three-part series on these useful little vehicles. In today’s segment, we’ll dive into the “what” and “why” of electric micro-cars.
From the definitions (which have so far eluded most of the industry) to the use cases (which have so far eluded most Americans), we’ll set the stage for what could be the next big wave of tiny cars. In Parts 2 and 3 we’ll cover the legality of such vehicles and the options currently on the road.
What is an electric micro-car?
Let’s start off with a few definitions to set the record straight about these tiny vehicles.
There are three commonly used terms for describing these little runabouts: micro-cars, NEVs (neighborhood electric vehicles), and LSVs (low-speed vehicles). And they’re all wrong in one way or another. Let’s explore each, below.
Low-speed vehicles (LSVs)
The term LSVs is currently the least commonly used term for these, but it’s actually the most correct. That’s because it’s the only legally defined category. LSVs are a federally mandated class of motor vehicles in the US.
They’re more or less equivalent to what are known as “quadricycles” in Europe, with the exception that European quadricycles are allowed to reach speeds of up to 80-100 km/h (50-62 mph), depending on the country, while LSVs in the US are limited to just 25 mph (40 km/h).
The Microlino is a European Quadricycle that reaches speeds far faster than allowed for LSVs in the US
It is a common misunderstanding that all that is required for a vehicle to be considered an LSV is for it to have a maximum speed of 25 mph (40 km/h). In fact, that is only one of many requirements. Federal Motor Vehicle Safety Standards for LSVs have laid out around a dozen standards that mostly cover speed and required safety equipment, but that also include requirements for the manufacturer’s factory to be federally approved by the National Highway Traffic Safety Administration (as well as the factories that produce key components like the auto glass, seat belts and other important components). That’s why it isn’t enough for a small vehicle to simply have seat belts and not exceed 25 mph.
For this reason, it is actually quite difficult for new manufacturers to receive street-legal status for LSVs, though we’ll dive into the legality of these vehicles in much more detail in Part 2 of this series. It’s an important issue since many of the supposed “street legal” LSVs now being offered for sale in the US are far from actually being street legal.
For now though, suffice it to say that LSVs are a federally mandated category of vehicles that are allowed to reach speeds of up to 25 mph (40 km/h) and are allowed to drive on roads with speed limits posted up to 35 mph (56 km/h).
The Wink Sprout above is one of a growing number of street-legal LSVs in the US
LSVs are not required to be electric vehicles, and many low-production-volume combustion engine models have existed over the past two decades, similar to the phenomenon of “kei cars” in Japan. But these days nearly all LSVs in the US are also electric vehicles, largely due to the simplification of manufacturing/maintenance as well as reduced regulatory hurdles associated with emissions testing.
The term LSV is really the only important term for this industry because it is the only one that is clearly defined. That brings us to… NEVs.
Neighborhood electric vehicles (NEVs)
The term NEV is probably the most commonly used term in this industry, which is problematic because it doesn’t mean anything. There is no clearly defined boundary for what makes up an NEV.
The term originated before the LSV category was created by the federal government, and it largely referred to small, slower-moving electric vehicles that were similar in appearance to golf carts, yet were designed for traveling on roads and around neighborhoods instead of across the golf course. The most famous example of an NEV is likely the GEM, which started out under the Chrysler umbrella before moving to Polaris and finally to its current owner, WAEV.
The GEM popularized the concept of an NEV before the US government had created an LSV category, and thus the term NEV stuck.
The problem is that despite everyday usage, there’s no clear line drawn to determine what is and what isn’t an NEV. It’s similar to the word “truck” in its vaguery. Is an F-150 a truck? What about an 18-wheeler semi-trailer? Or a U-Haul? They’re all called trucks in common parlance, yet the Department of Transportation would beg to differ.
The other issue with the term NEV is that it implies a purely neighborhood use for these vehicles. While neighborhood and local community use is a common application, densely populated cities are quickly becoming another major market for these tiny electric vehicles.
An LSV could easily drive from Battery Park on the southern tip of Manhattan up to Washington Heights, a 13-mile (21 km) commute covering dozens of neighborhoods. In fact, I drove an LSV across the Brooklyn Bridge earlier this year as I travelled around NYC, highlighting the urban appeal of such small electric vehicles.
I drove an LSV from Wink Motors across the Brooklyn Bridge on a day trip through NYC
What are micro-cars?
The term micro-car has become something of a catchall. Similarly to NEVs though, there is no clear definition for the term. It is generally used more for fully enclosed LSVs than for open golf cart-style buggies like the GEM vehicles (though GEMs do have optional hard doors that make them fit better into the loosely defined micro-car category).
This door quasi-requirement is likely due to the fact that many people think of micro-cars as looking more like a conventional car, but simply scaled down into a smaller (and often cuter) vehicle.
Micro-cars can be as small as single-seaters or can even fit a family of five. I’ve driven a Chinese micro-car around Florida with my wife and our three nieces and nephews, showcasing the family-friendly nature of electric micro-cars.
Micro-cars, just like NEVs, are not a federally defined class of vehicle, and thus the term is limited largely to everyday language. For legal use, LSV is the only federally defined category of motor vehicle.
Golf carts are perhaps the most commonly understood of all of these categories due to their ubiquitous use on golf courses around the country.
While they can be powered by a combustion engine or by an electric motor, most golf carts produced today are electric.
They generally reach speeds of up to 20 mph (32 km/h), though can often be modified to reach speeds of closer to 30 mph. Some come with seat belts, radios, and other fancier features, but many are bare-bones vehicles designed for basic transportation.
Traditional golf carts are not street legal, though many small communities have created local golf cart ordinances to allow for their use on low-traffic roads.
Several large golf cart manufacturers have begun to produce LSV versions of their carts that have been homologated for street use. These versions, if produced to meet the LSV regulations laid out in the Federal Motor Vehicle Safety Standards, can be used like any other LSV on public roads that have posted speed limits of 35 mph (56 km/h) or less.
Golf carts are generally open-air vehicles that lack doors or locking storage. This is one of their main downsides compared to micro-cars, which generally have locking doors that can provide security as well as an all-weather ride.
Use cases for electric micro-cars and small vehicles
LSVs have two main uses in the US: transportation and utility use.
For transportation, LSVs have several advantages. Many owners prefer their small size that makes them nimbler in traffic and easier to park. They can often even be parked in small spots or psuedo-spots on the edges of parking areas that a traditional car couldn’t fit into.
Their simpler design and smaller size also means that they generally cost much less than a traditional electric car, both to purchase and to charge. Some new LSVs can start at below $10,000, compared to much more expensive electric family cars.
For some people, they’re also more fun to drive due to the novelty and go-kart feel that the small size offers. The 25 mph (40 km/h) top speed can be appropriate in many cities and communities, and the slower pace is often more fun for folks that enjoy cruising around their community and seeing the smiles on faces from onlookers. This is especially true in beach communities, older resident villages, and other planned communities.
My mini-truck may be small but it carries quite a load!
For utility, LSVs can offer many of the same benefits. Electric mini-trucks are becoming more popular in the cargo and delivery fields, especially in crowded cities that can be difficult to navigate with a larger box truck.
These vehicles can often offer similar bed sizes compared to traditional pickup trucks or small flatbed trucks, yet the entire vehicle is much smaller.
The increase in demand for electric mini-trucks has even spawned a new US-produced vehicle known as the AYRO Vanish.
Which LSVs and NEVs are street legal?
Street-legality is perhaps the most important aspect of electric micro-cars, especially as new importers and manufacturers begin to crop up.
We’ll cover this issue in-depth in Part 2 of this series, which will return this Wednesday. Stay tuned!
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The first electric Range Rover is expected to hit showrooms in the next few months. With its official debut just around the corner, Range Rover’s first EV was spotted testing in Sweden. Here’s a sneak peek of the luxury electric SUV.
Range Rover’s first EV put through the paces in Sweden
Range Rover is finally gearing up to introduce its first EV later this year. Earlier this year, JLR confirmed that the Range Rover Electric already has 57,000 buyers on the waiting list.
The company claims the new model “redefines” the electric luxury SUV with an “unrivalled driving experience.” To prove it, Range Rover is putting its first EV through the paces in sub-zero conditions in Sweden.
Range Rover’s electric SUV has been through 45,000 miles of testing across frozen lakes and land tracks. The latest round allowed engineers to test their new thermal management system.
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The company’s new ThermAssist thermal management system reduces heat energy consumption by up to 40% and is designed to warm the propulsion system or cabin in temperatures as low as ‑10°C (14°F).
Range Rover said it also helps optimize driving range while minimizing the impact of extreme temperatures on charging performance.
Combined with an 800V battery, the first one built in-house by JLR, the company promises the best possible performance, with optimized energy density, range, and charging times. The Range Rover’s first EV will be powered by a 117 kWh battery, consisting of 344 prismatic cells.
Built for both on- and off-road performance, the electric SUV features new additions like single-pedal driving and a switchable twin-chamber air suspension system.
Range Rover tested the single-pedal capabilities on both 28-degree and 17-degree split-mu inclines at its Arctic test facility.
Range Rover Electric prototype (Source: JLR)
Matt Becker, Vehicle Engineering Director at JLR, explained that the electric SUV maintains the brand’s signature driving experience “by marrying all the essential Range Rover elements with new and advanced technologies.”
Following its second season in Sweden, Range Rover will continue testing prototypes ahead of the official launch later this year.
After its first EV, Range Rover is already preparing another smaller electric SUV, which is expected to be the Sport model. In 2026, the company is expected to release a mid-sized electric SUV, likely the Velar.
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Volvo is launching a nearly $2 billion (SEK 18 billion) restructuring plan to drive growth and mitigate the impact of Trump’s tariffs. With the new EX30 and ES90 EVs rolling out, Volvo is taking drastic action to drive growth.
Volvo launches restructuring plan due to Trump’s tariffs
After its operating income fell by nearly 60% to SEK 1.9 billion in the first quarter, Volvo launched a cost and cash action plan.
The restructuring is worth SEK 18 billion, with most of it being realized in 2026. Volvo’s new strategy includes SEK 3 billion in variable cost actions and SEK 5 billion in indirect spend efficiencies. The additional SEK 10 billion will be added in cash actions to reduce working capital and capital expenditures this year and in 2026.
Volvo Cars CEO Håkan Samuelsson said, “The automotive industry is in the middle of a very difficult period with challenges not seen before.”
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With “turbulence in the market,” Samuelsson added that the company needs to “further improve our cash flow generation and lower our costs.”
Volvo EX30 (source: Volvo)
To do so, Volvo is focusing on three areas: profitability, electrification, and regionalisation. Volvo is already leading the premium segment, with electrified vehicles accounting for 43% of sales in Q1. However, with new EVs launching, Volvo said more will need to be done to overcome the impact of Trump’s tariffs.
Volvo created a new region called Americas, which includes the US, Canada, and Latin America, to streamline its global operations.
Volvo EX90 electric SUV (Source: Volvo)
In the US, the company is looking to sharpen its product line-up and plans to boost production at its Charleston, South Carolina, plant.
Earlier this month, Volvo started production of the EX30 at its Ghent plant, which will help it ramp up deliveries in the second half of 2025.
Since it will be imported into the US, Volvo is bracing to take a hit from tariffs. Even the EX90, which is made in Charleston, is heavily impacted, as most components still come from Europe.
Volvo EX30 production at its Ghent plant (Source: Volvo)
Volvo also revealed the new ES90 last month, its new electric sedan and second EV built on the Volvo Cars Superset Tech Stack. It’s Volvo’s sixth fully electric vehicle following the EX90, EM90, EX40, EX40, and EX30.
In China, Volvo plans to adapt to the changing market with its first extended-range PHEV model, which will launch later this year.
Volvo said it remains “firm on becoming a fully electric car company.” Despite a weaker overall market, almost a fifth of the vehicles it sold in the first quarter were electric.
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In a warming world with increasingly extreme weather events, homeowners are turning to backup batteries for relief and peace of mind. But the backup only lasts only so long, and there’s a bigger problem at play: aging power grids.
Enter the virtual power plant, managed through a cloud-based system. It’s a fertile market for a number of companies as consumers look for more reliability, especially in areas prone to extreme temperatures and storms.
Base Power, headquartered in Austin, Texas, is a virtual power plant and hardware company that provides battery backup to homeowners. The startup manages the batteries, and virtually controls the power that’s going in and out.
“We install our batteries on our customers’ homes. When the grid is up and running, we use those batteries to support the power grid,” said Base CEO Zach Dell. “When the grid goes out, our customers get those batteries to back up their home. We’re also able to save our customers on the order of 10 to 20% a month on their electricity bills.”
Unlike Tesla and Enphase, Base doesn’t sell home backup batteries. Rather, it rents the batteries to homeowners, providing the hardware, software, installation, operations and electricity. Essentially, it’s a battery-based energy company.
“We own and operate it,” Dell said. “We handle all the maintenance. We take care of the system like it’s ours.”
That control allows Base to manipulate how the battery is used, specifically accessing cheaper power and passing that savings on to the consumer. Base charges the battery from the grid when demand is low, typically during overnight hours. When demand is at its peak — summer evenings and winter mornings — Base sells power, discharging the battery to support the grid.
For an upfront fee of $595 and then about $19 a month, homeowners get access to reliable power, provided by Base. That power is generated by several sources, including wind, solar, natural gas and coal. About half of Base’s customers have solar, according to the company, which lowers their costs even more and allows them to sell that power back to Base.
A company spokesperson said Base compensates customers for the power they sell back, calculated as the real-time wholesale energy price plus an additional 3 cents per kilowatt hour. Buyback rates may vary depending on market conditions and other factors.
Base is now serving one of the nation’s largest homebuilders, Lennar, which is also an investor. Base installs batteries during the construction process in roughly 20 Lennar outage-prone communities in Texas.
Stuart Miller, Chairman and co-CEO of Lennar, said it’s not just about making money.
“It’s, are we going to be able to improve the overall stature of the home building business, as it seeks to address the markets that are stressed and having problems?” he said. “Utilities and electricity is a part of that.”
Base has raised a total of $268 million from investors including Lennar, Thrive Capital, Valor Equity Partners, Lightspeed Venture Partners and Andreesen Horowitz.
Base recently announced its first utility partnership near San Antonio. Dell said the company hopes to soon expand outside of Texas. However, the batteries are made in China, and Dell said he expects to see an impact from tariffs.
— CNBC producer Lisa Rizzolo contributed to this piece.