Electric Cars

Friday – June 9th, 2017

Getting the first post out on day, thats efficiency. First topic we are going to talk about is Electric Cars because Today Tesla passed BMW in Market cap and already passed Ford and GM.

The future of cars is electric, by 2030 it is projected that all new vehicles, globally, will be electric. Even other countries are overwhelmingly accepting this; India is planning to sell only Electric Cars by 2030, and is already the largest market for solar power. This pairing is crucial to Electric Cars being more sustainable than Gas burning Vehicles. If electricity is not made from solar, which is the most renewable and green way to create it, then it is made from burning coal, which actually pollutes more toxins than gasoline when burned. Therefore, if the electricity being used to power the electric car, is it really more green than a petroleum burning vehicle? Likely, if anymore, not by much.

This is the reason why Tesla strategically bought Solar City, for $2 Billion Dollar back on November 17th, 2016.

Why electric cars have taken so long to catch and be accepted is because of the high cost of the vehicles and solar power. With the average cost of Solar Panels now lower than $3.50/watt, actually close to about $3.36/watt, Solar is now comparable to Gas in price. To give you a better understanding of how let me put it in comparable terms of cost per amount of energy produced (kWh): Fossil fuel steam averages around $0.05 cents/kWh and small scale natural gas can go as low as $0.03 cents/kWh. The lowest price for Solar Cells, also known as photovoltaic (PV) is $0.029 cents per kWh. Although this is the absolute lowest cost, it shows that Solar has come a long way:price-of-solar-power-drop-graph

 

The future is bright with electric cars and solar panels, especially with the lingering talk about State Carbon Taxes. The innovation here would be moving the transportation industry from a non-renewable energy source, in petroleum, to a renewable energy source, at least for the next 4 billion years, in the sun. More competitors are starting to get into these industries as it shows a promising future, many of these companies in Silicon Valley. More competition is going to increase Supply first driving down prices in the short run, which is good for consumers, which in the medium run will increase demand (My undergrad Econ studies are showing). Eventually, electric car producers will have to produce an economical and affordable electric car to remain competitive in the market.

Interesting related articles:

 

More upcoming related topics:

  • Autonomous Cars
  • Solar Energy (Renewable Energy)
  • Fall of oil industry
  • Innovation
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