EVs: once held back – today’s industry giant
As we head into a future of advancements, in a world between the industrial and technological era, even one’s choice of car is something to think about. Technology continues to advance at exponential rates, companies such as Tesla (NASDAQ: TSLA) and Polstar who are solely focused on electric vehicles could very well be making big moves; specifically with oil (NYMEX:QMZ21) prices on a rise globally. As gas (NYMEX: NGX21) prices continue to skyrocket, electric vehicles (EVs) are making more and more sense to many.
These high costs in gas for the everyday person and the likelihood of continuous increase may be pushing car buyers towards electric cars. On top of that, many would lean towards not having to deal with things like car fumes, engine/exhaust noise, and fuel. There clearly is a rush and a race to have “the future” of cars figured out, as many carmakers are eagerly switching over to EV; amongst some are General Motors (NYSE: GM), Ford (NYSE: F), BMW (ETR: BMW), Mercedes (ETR: DAI) and Porsche (ETR: VOW3)- from daily cars to luxury cars.
All the above stacks on to the ever-growing fear of global warming and what the combustion car is doing to the environment like it was highlighted in 2006 films: An Inconvenient Truth and Who Killed the Electric Car. These movies brought to light the rapid changes of global warming and the adverse effects the transportation industry has on it, along with the true power of the oil industry and the setback of the first electric cars. Electric cars are not something of the very recent past and have been around for much longer than thought since the first practical electric car was built sometime in the 1870s. The first applicable combustion engine vehicle didn’t come around sometime later, until 1885, by a mechanical engineer, Karl Benz. This raises the question, why did the electric car take so long to be mass produced if such technology has been around for so long? Needless to say, there clearly is a correlation between the electric car makers and oil companies, and the recent rise in EV technology isn’t a coincidence.
Stats aside, EV technology can be seen in the everyday mass adoption and growth of electric vehicles that are seen on the roads. Backing that, you can also see the demand and value for EVs, as Tesla’s company stock recently has been on the up and gaining value, headed towards its previous highs as oil prices continue to increase, sitting at about $82/barrel (at time of writing article). To put it in perspective, many places around the globe are paying close to 50% more on their vehicle fuel than they did a year ago, causing significant budget adjustments for many. All this after and during a period of a worldwide lockdown, causing many to lose their jobs or adjust their budgets accordingly. Tesla is just the lead-out man, and all other car manufacturers are fighting to catch up and ideally set themselves up for the podium positions in the market. The question isn’t whether electric cars will be the future, as they are more efficient than conventional gas-powered cars, but which carmakers will be leading the industry.
There are definitely a lot of factors at play in this new generation of vehicles and transportation, but the game is just getting spiced up, and oil has been the perfect catalyst. The real question is, who will ride out this perfect storm and provide unmatched driving conditions… have the big moves happened in the EV industry, and are the contenders set, or are we in the midst of it? What carmakers are taking advantage of the global price increase in oil? Time will tell.