GM - Evs Are Changing the Automotive Landscape for Good
Electric vehicle market is expected to reach $985.72 billion by 2027. But, the bigger picture is the renewable energy pull and the changed this dramatic shift will bring. As even the big General Motors (NYSE: GM) is determined to completely phase out gasoline and diesel-powered engines and shift to a 100% electric vehicle lineup by 2035, the general trend and accelerating shift toward EVs will impact the automotive supply chain in many ways and change it for good.
New Supply Base
Existing suppliers and existing OEMs meed to move to capture new business in the electric vehicles market. Ford (NYSE: F) invested $500 million in Rivian and GM almost invested into Nikola (NASDAQ: NKLA) in an effort to take advantage of its electric platform. A number of players in the space, including battery makers and charge-station companies have gone public in recent months.
New Cost Structures
EVs have entirely different components and therefore, they entail a different cost structure that results in higher pricing. Even the CEO of German giant Volkswagen (OTC: VWAGY) was openly afraid of them. But, Volkswagen is determined to become a global market leader in electric mobility and plans to invest more than €11 billion by 2023 and produce 1.5 million electric cars a year by 2025. It already tripled its deliveries of fully-electric vehicles in 2020, and became a market leader in a few countries with its growing ID family thanks to European subsidies.
Volumes
Tesla (NASDAQ: TSLA) delivered a record of almost half a billion electric vehicles last year, which is more than twice of Volkswagen’s 231,600. Tela smashed previous production and delivery records in the fourth quarter of 2020 during which it shipped more than 180,000 vehicles to customers which is 30 percent more than its previous record that it achieved during the third quarter. It is reasonable to expect that Tesla will deliver even more EVs in 2021 due to its new Gigafactories in Berlin, Germany and Austin, Texas. If anything, Tesla needs to expand rapidly to justify its astronomical valuation. But, Volkswagen’s performance shows an increase of 214% on the previous year and confirms that Germany’s huge auto industry is beginning to mount a challenge to the leader in electric cars. BMW (OTC: BMWYY) sold 44,530 battery electric vehicles in 2020, a 13% increase over the previous year, and over 148,000 plug-in hybrids, whereas Daimler’s (OTC: DMLRY) Mercedes-Benz sold more than 160,000 plug-in hybrids and pure electric vehicles. Even Ford showed with its latest earnings it is not willing not cede the future to anyone.
Battery
In order for EVs to become affordable, the battery needs to become affordable as it makes about one third of the vehicle’s cost. Elon Musk disappointed investors during Tesla’s 2020 investor day as he didn’t show an actual prototype of the revolutionary battery but the company will be making the 4680 batteries in its German plant, along with 50,000 EVs, in what Musk thinks will become the biggest battery cell plant on the planet. The batteries value chain plays a strategic role for Tesla to achieve its ambitions. Moreover, an affordable and better-performing battery is key to a wider adoption of EVs.
Mobile energy
Worksport (OTC:WKSP) announced today it also goes beyond pickup trucks with its independent TerraVis COR mobile energy storage system that can be recharged via the sun or with conventional A/C power. TerraVis COR is an outgrowth of its ground-breaking TerraVis tonneau cover system. The working prototypes of the battery are expected within two to three months. The battery could reach the market within six months after development begins as its production is less complex than the one within the TerraVis tonneau cover. As the portable stand-alone battery is removable and can be purchased independently, it can be deployed in whatever use the consumer requires. The company is expanding further into a larger energy market where a consumer does not have to be a truck driver to benefit from its use, whether for emergency and disaster efforts, contractors, vacation, camping or in rural areas for agricultural usage. The TerraVis COR system is expected to launch globally this year.
Intellectual Property
New entrants are benefiting from joining forces with established players to get the technology they need to bring their EV models to life. Hercules Electric Mobility Inc. signed a deal with Worksport Ltd to be its Tier One OEM supply partner for its forthcoming Alpha Electric Pickup. Worksport is also moving forward the second agreement with Atlis Motor Vehicles to configure its revolutionary TerraVis solar charging system as an OE accessory for the highly anticipated and technologically advanced Atlis XT electric pickup truck. The rich intellectual portfolio that this established and innovative truck tonneau cover developer and manufacturer has will be its biggest asset over many years to come as it brought a ground-breaking fusion of advanced solar power to the EV market.
2021
The EV market is yet to bring many new technologies to life. 2020 was a turning point for EVs and marked a breakthrough in electric mobility. By the looks of it, that was merely the first chapter in the EV book with many new EV models and the first electric pickup coming to stores near you this year.
This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com