Electric cars not expected to hit the mainstream until 2025?

We’ve heard quite a bit about the move to electric cars. Heck before its recently approved merger with Solar City, Tesla was essentially just an electric car company. Granted they are beautiful cars, but hardly ones that have hit the mainstream. We’ve seen competitive efforts from Chevrolet with the Volt and Honda is slated to have an all-electric vehicle hit the market in 2017.

It would appear the expected tipping point for this market is sooner than later, but as we’ve often seen in the past with Disruptive Technologies they tend to hit that tipping point later than expected. There are several factors involved including product price points, ample supply of parts to ensure adequate production and that little thing that incentivizes suppliers to produce those parts… something called profits. If we factor that last part into the equation, it’s possible the electric car market will indeed take longer to hit the mainstream.

German automotive supplier Continental (CONG.DE) will continue to post losses with products for electric cars until at least 2019, its Chief Executive Elmar Degenhart told German weekly magazine WirtschaftsWoche.

“The shift from combustion engines to electro-mobility will only massively take off between 2025 and 2030. Sometime between there, the number of combustion engines around the world will peak and then moderately decline,” the magazine quoted Degenhart as saying.

Source: Continental sees no profit from e-car products before 2020: CEO | Reuters

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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