Bernstein Reports Electric Vehicles May Become Cost Competitive

Bernstein analyst Max Warburton reported in a note that electric vehicles may make up a “much larger part” of the vehicle fleet in future years than what was previously expected. Warburton noted Tesla Motors, Inc.

“extraordinary” claims regarding low battery costs. The analyst remarked that, if proven correct, suggests that the cost of batteries may decline to enable a competitive electric vehicle cost. Bernstein conceded that the prior 2011 note may have been “too bearish." The prior note established a tone and conclusion that electric vehicles would have a difficult time becoming cost competitive. The analyst reported that Nissan and Renault are pest placed among the mainstream OEMs to attain a full scale battery production. Shares of Tesla closed at $230.97 on Thursday. The stock is currently trading at $232.91, up 0.84%.