A bright future for electric cars
According to the MIT Technology review, Tesla is beginning to face fierce competition from several other European and Asian companies globally which is potentially great for consumers. These lesser known companies are following the lineage of Tesla in the field of battery manufacturing while still keeping up with or at least competing with their production rates. Chinese company BYD Auto also has a very feasible goal to complete/ maintain a giga factory that generates up to 34 gigawatt hours by 2020, a goal that is just one gigawatt hour shy of Tesla’s world leading factory. Another Chinese firm, Contemporary Amperex Technology, plans to generate 26 gigawatt-hours by that same year as well. This comes along with news that there will be other manufacturers joining in, as well as refurbished batteries being reused. This means that there could be upwards of 130 gigawatt hours of energy produced in battery cells annually by the year 2020. This influx of battery production will admittedly have a negative impact on electric car stocks as they will become much less exclusive, however, inversely it will have a great impact on prices for consumers. Essentially, with so much competition, the cost of the automotive battery will be driven down tremendously, thus consequentially bringing down actual electric car prices as. This drop in prices would lead to more consumers buying electric creating a shift of consumer behavior in the automotive world could have numerous effects both negatively and positively. Negatively this could call for the decline of the petroleum/ fossil fuel industry which means billions of dollars lost and more importantly millions of family supporting jobs lost. On the contrary, if the electric fulfills its potential as it should, the call for jobs in this market would skyrocket to keep up with consumer demand. Another possible positive effect is that such a surge in electric cars will reduce global dependency on fossil fuels which helps ameliorate the energy crises as well as do wonders on reducing the human carbon footprint. All of these great impacts arise from the emergence of other electric car companies and car battery manufacturers. With the potential benefits both counteracting and outweighing the potential losses, it only makes sense to support and encourage these companies to make a difference.