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.
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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.