Today, $22,000 can buy you this …
By 2040, it will by you something closer to this …
This is based on projections from Bloomberg New Energy Finance.
Check it out …
It’s looking like the 2020s will be the decade of the electric car.
Battery prices fell 35 percent last year and are on a trajectory to make unsubsidized electric vehicles as affordable as their gasoline counterparts in the next six years. That will be the start of a real mass-market liftoff for electric cars.
By 2040, long-range electric cars will cost less than $22,000 (in today’s dollars), according to the projections. Thirty-five percent of new cars worldwide will have a plug.
Of course, there are plenty of folks who will look at this chart and laugh mockingly. They’ll insist that there’s no way electric cars will be anything but a niche for overzealous treehuggers and wealth eccentrics.
Similar things were said about the automobile back when horses were the “modern” mode of transportation. And we know how that turned out.
But I don’t pay much attention to the naysayers.
Just as the folks who grasped desperately to their typewriters and Betamax players, those who believe internal combustion will be particularly relevant beyond 2050 will be left in the dust. And to them, I say good riddance. I’ve grown tired of their hostility and mind-numbingly boring message board posts. Thankfully a lot of their time and vitriol seems to be focused on singing the praises of Donald Trump these days.
In any event, Bloomberg’s latest analysis is cause for enthusiasm and an acknowledgement of reality.
You see, electric cars aren’t going to become ubiquitous because the world is full of moral do-gooders and Bernie Sanders supporters. Electric cars are going to become ubiquitous because a.) they’re just better.
As former VP for R&D at General Motors recently told reporters, “set aside all the motivations with climate change, oil dependence – it’s just a better was to do a car. It’s simple.”
And b.) they’re about to get a lot cheaper, thereby enabling mass adoption. And this is primarily because battery costs continue to fall dramatically.
Check out this beautiful chart …
Bloomberg also believes that with the rise of electric car adoption, oil markets could crash. I’ve never been very good at prediction moves in the oil space, but this video makes a pretty convincing argument.