[Electric Vehicles] ‘There is no knowing where the change will end’ – analyst – by Henry Lazenby (MiningWeekly.com – May 30, 2018)


VANCOUVER (miningweekly.com) – The wave of change that the electrification of automobiles brings is moving beyond electric vehicles (EV) to the micro, artificial intelligence and autonomous mobility options, which should increasingly be brought into the outlook for the burgeoning market.

“Big gambles and bold leadership does not always guarantee results,” founder of The Daily Kanban and Bloomberg analyst Edward Niedermeyer cautioned an audience attending the recent Vancouver leg of London-based Benchmark Mineral Intelligence.

From his qualitative analysis, it is evident that cars are a very emotional and even irrational topic, with sales of EVs, sports utility vehicles (SUVs) and sports cars driven by desire, rather than need, from a consumer perspective.

But the auto industry is extremely complex and challenging, making it difficult to present or formulate a big picture, he surmises. “Everyone presents parabolic graphs of the uptake of EVs, but is it true? The fact remains that the structure of the auto industry remains that it is inherently a capital intensive, low-margin industry, that is extremely averse and resistive to change across the board,” he notes.

For him, Tesla encapsulates that idealism that appeals to consumers, which contrasts with the brutally tough business reality of mass producing cars.

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