It was bound to happen eventually. I just didn’t think it would happen this quickly.
The electric vehicle industry has finally reached its tipping point.
The EV revolution cannot be stopped.
And I’m not the only one who thinks so.
Auto analyst Felipe Muñoz said 2018 was probably the peak of internal combustion engine (ICE) car sales. He predicts EVs will outsell ICE-powered vehicles by 2030.
Within the next decade, we can expect to see the beginning of the end for fossil fuel-powered vehicles. And in the same time frame, it may become comparable or cheaper to buy the average EV.
A Global Trend
After a slow start, EV models are hitting dealer showrooms all over the country.
Customers are buying. In fact, most dealers now have waiting lists.
And it’s not just a U.S. phenomenon.
Much of the global EV growth is happening in China. That means trouble for Chinese car and truck makers.
The Chinese government is big on EVs and has made it nearly impossible for carmakers to increase production of ICE-powered vehicles.
The government will not support new companies that make only ICE vehicles. And existing carmakers are required to meet certain benchmarks to ensure the future is electric.
On the European front, German automaker Daimler AG (OTC: DDAIF) recently said it would halt ICE development. Instead, its primary focus will be on EV development.
It will specifically be focusing on battery and electric drivetrain design.
Daimler’s announcement has significant implications for the company. This German conglomerate also owns 18-wheeler maker Freightliner.
All of its current production is diesel-powered trucks. Although Daimler didn’t specifically say so, its current announcement sets the stage for its entry into the all-electric truck market.
Tesla (Nasdaq: TSLA) can certainly be credited with kicking off the current EV transportation disruption. But now nearly every other car and truck maker has plans to start making EVs.
Mercedes-Benz recently joined Volkswagen as the only ICE car manufacturers planning to switch to exclusively EV production.
I believe we will see more announcements like this over the next several years.
Public Support
Both automakers and customers are on the same page right now.
Worldwide, automakers are investing an impressive $300 billion in the development and production of batteries and EVs.
That investment will likely pay off…
A recent survey by AAA showed that 20% of respondents plan to make their next car an EV.
And, lastly, a survey done by the hosts of the Fully Charged video series found that 88% of EV owners would never buy another ICE vehicle.
Welcome to the tipping point, readers.
Good investing,
Dave