Yahoo Finance Live anchors Julie Hyman and Brad Smith break down the chart of the day.
Video Transcript
BRAD SMITH: It’s time now for our chart of the day, and today we’re looking at global EV production, which increased by 74% in 2022. Analysts at Bank of America are predicting an EV penetration rate of 42% by 2030, meaning it will be an uphill battle for the automakers as competition heats up.
A few things on this front– even as you’re looking at the global EV sales and the regionality and approach there is it’s going to come down to where there are production mandates as well that actually spurs some of that production. And then you think more on a competitive front of the different parts, the materials, whether that’s a rush for lithium resources that we’ve heard Tesla as well as the other major automakers and legacy automakers talk about or just trying to compete on the power of the battery as well, which all of them are already creating their own competitive positioning around.
JULIE HYMAN: Right. So there’s this sort of tension, perhaps– there’s sort of three different ports of tension. There are regulators who are pushing for this, not just in the US but around the globe. There are consumers who, in some cases, don’t want this, in some cases, do want this. And then there is the supply chain and the technology and the innovation and the ability to, to your point, make the cars or the vehicles of all kinds that could meet the demand that the regulators would like to see.
BRAD SMITH: Right, and the regulators are also going to have to grapple with how quickly infrastructure is brought online to make sure that it is a compelling play. In order for consumers to see the value in holding and owning an electric vehicle, there’s going to need to be more gas stations that essentially have the ability to charge their vehicle.
JULIE HYMAN: Right
BRAD SMITH: And so building out the network that much more quickly is going to be critical and paramount to even the messaging that they’re able to put forward and the marketing of a lot of the vehicles as well.
JULIE HYMAN: Yeah. So there’s a lot that needs to happen, in other words.
Source: finance.yahoo.com
