Money Gets Behind Cars With Plugs

Investors Get Ready for the Coming Electric Car Revolution; After many false starts, a new era for the automobile is looming into view

Stephen Wilmot, December 13, 2016 (Wall Street Journal)

“The car of the future will be electric, connected and, eventually, self-driving…Precisely when electric cars leave their current luxury or green-tech niches and—after many false starts—enter the mainstream depends above all on relative cost. On that front, electric vehicles have momentum…The plummeting cost of batteries is key. The growth of mobile computing has driven massive investment in the area, improving the range of electric cars while reducing their cost. Mercedes-maker Daimler thinks the production cost of engine and battery technology might reach parity in 2025. But the tipping point for consumers, who also factor in subsidies and running costs, will be earlier…

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The industry now has a model to follow, too: Silicon Valley disrupter Tesla has shown that there is consumer demand for well-designed electric cars, spurring nearly all the industry’s incumbents, from Detroit to Germany and Japan, to invest heavily…General Motors is now releasing its all-electric Chevrolet Bolt at an after-tax price…less than the average new-car sale price in America, though high for a compact. Tesla’s much-hyped Model 3 is expected late next year at a slightly lower price…The future of the car will be electric. The rewards for those who back the winners will be huge.” click here for more

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