Tesla Giga Factory graphic

Tesla Giga Factory graphic

According to Benzinga, Bernstein analyst Max Warburton reported that electric vehicles may actually have a future now that automakers like Tesla Motors and Renault-Nissan are driving down battery costs.

LEAF Battery Pack Gets Assembled

LEAF Battery Pack Gets Assembled

As Benzinga states:

"Warburton noted Tesla Motors “extraordinary” claims regarding low battery costs. The analyst remarked that, if proven correct, suggests that the cost of batteries may decline to enable a competitive electric vehicle cost."

This may convince Warburton to change his future outlook for electric vehicles.  Back in 2011, Bernstein put out a note on electric vehicles saying that they would not become cost competitive in the near future.

Now, Warburton feels that electric vehicle could represent a "much larger part" of the automotive fleet in the coming years, due mainly to reduced battery costs.

Warburton notes that both Tesla and Renault-Nissan are best positioned to deliver on the promise of low-cost batteries.  More specifically, Warburton says that Renault-Nissan is likely the only mainstream OEM with the capability of delivering low-cost batteries in the near future.

Source: Benzinga