Tomahawk, WI 08/19/2014 (Basicsmedia) – Tesla Motors Inc. (NASDAQ:TSLA) has already proven that electric vehicles are the next big thing in the industry, seen by its stock surging by 73% since the start of the year as they continue to enjoy positive reviews and acceptance by majority of Wall Street Analysts. The biggest question according to, Phil Lebeau, on CNBC is whether electric vehicles mostly being produced by Tesla will be able to match the more than 85 million vehicles being produced by other automakers.
Tesla Motors Inc. (NASDAQ:TSLA) and other companies who are currently developing their own electric vehicles continue to be overshadowed’ by the fact that they might not enjoy the benefits of mass sales. The total electric vehicles set to be produced this year stands at 142,000, a drop in the ocean compared to 85 million units of non-electric vehicles to be produced by other automakers.
“For all the talk about these are the vehicles, of the future and everybody is jumping into them take a look at the numbers in terms of global auto production which is about 85 million this year. That’s what the industry is going to make around the world. How many electric vehicles will they make, about 142, 000,” said Mr. Lebeau.
The electric vehicles space according to Mr. Lebeau is constantly growing but not at the same rate as the non-electric segment. There is expectations that in 25-years, the total number of electric vehicles in the U.S will be approximately 8-million, a level that could only be achieved at the back of huge government subsidies to boost sales.
MIT in a research is quoted’ as stating that for electric vehicles to reach 50% of the current vehicles sales by 2039, the space will have to experience increased incentives to encourage people to make buys as well as massive development of charging stations. Tesla Motors Inc. (NASDAQ:TSLA)’s accelerated growth in the space looks to be limited by the number of things that will have to work to its advantage, such as massive development of charging stations, as well as government incentives to encourage mass buys.
“[…] MIT says in order to get to 50% of new vehicles being electric vehicles by 2039. You are going to need not only incentives for the people buying, continuing charging stations, you’ll need the carbon taxes which will have to go into effect at some point. A lot of things will have to come together,” said Mr. Lebeau.