How much will this ‘revolution’ of electric vehicles cost? B. de A. has an answer

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Analysts at B. of A. Securities have priced an electric vehicle “revolution”, using Tesla Inc.’s capital increases as an indicator of future capital needs for the industry as a whole. The auto industry is reaching “a tipping point for electric vehicles, but financing this revolution is a major hurdle,” analysts said in a note.

Last year was the “year of electric vehicles in terms of investor / news hype; however, the reality remains fundamental: electric vehicles still occupy a small percentage of the market and will probably do so in the coming years, “they said. The shift to electric vehicles could end up needing more than $ 2.5 trillion in global investment, analysts said, using Tesla’s TSLA as a proxy, -1.53% of output relative to its capital increases, which have generated more than $ 20. billion since 2010. EV’s target had the installed capacity to manufacture 100 million electric vehicles. The $ 2.5 trillion could end up being a conservative estimate, as another much-talked-about auto industry shift, driverless cars, would also need “significant” capital investments, analysts said. Governments would also collaborate, and in the US a proposed “green deal” could be “a harbinger of possible support to come.” The boom in blank check EV businesses and capital increases for EV startups will likely continue this year as well. Blank check companies have brought some of the latest and greatest electric vehicle companies to market, such as Nikola Corp. NKLA, + 11.32% and Fisker Inc. FSR, + 3.75%.