July 28, 2021

The growth of Tesla in 2020 made the United States automotive sector face a future which is electric

Wall Street and Tesla made the year 2020 as the United States automotive industry wanted to go electric. The market capitalization of Tesla soared beyond $600 billion, allowing the once unsteady start-up now led by Elon Musk, a billionaire, worth more than all the cumulative five world’s top-selling automakers. On Friday, the exclamation point came as Tesla grew to historic highs in frantic trade ahead of the company’s awaited entry into S&P 500 benchmark index.

By 2021, all evidence points to the industry speeding its move to electrification, a tipping point as historically significant as introducing the assembly line for the Model T or the 2009 bankruptcy of General Motors by Ford. The growth of Tesla came in the same year as activist hedge funds, as well as other investors, raised pressure on businesses to tackle climate change. There is growing evidence that more investors have assumed that the century-long domination of internal combustion engines within a decade is heading towards an end.

Policymakers have also adopted California proposals to London to Beijing to begin phasing out the internal combustion engine-only cars as soon as the year 2030. The argument for substantial capital expenditures in internal combustion engines has been weakened by the pressure to curb carbon pollution. In the United States, Germany, France, Britain, Japan, and other nations, hundreds of industrial jobs are usually related to internal combustion.

This year, other strong powers have also broken the status quo of the automotive industry. In order to finance methodical changes to electric cars, the COVID-19 epidemic took away the revenue and earnings that existing automakers had relied on. In 2020, GM CEO Mary Barra, as well as other top industry executives, started repeating Tesla’s Musk, claiming that battery prices for electric cars will quickly reach parity with internal combustion technologies. Nevertheless, it remains to be seen if customers were prepared to say farewell to pickup trucks as well as SUVs, which are fuelled by petroleum, particularly in the United States.

Pickup trucks that are large and use petroleum have topped the best selling cars in the US. As early as 2023, brokerage Bernstein says in a statement, the best electric car, as well as battery manufacturers, could launch models that equal internal combustion initial costs. Bernstein’s car analysts said, using the sector’s abbreviations for internal combustion engine as well as battery-electric cars, “ICE game over with the BEV ~ 2030,”