Higher oil prices will accelerate demand for electric vehicles - MS

Evs SA

03/06/2021 15:44

** Oil prices have a direct impact on the economic payback
period of electric vehicles (EVs), influencing demand, consumer
preferences and penetration - Morgan Stanley analyst Adam Jonas
and team
    ** Jonas predicts acquisition cost of the avg EV should fall
below avg internal combustion engine (ICE) vehicle by mid to
later this decade
    ** "Over the long term, we expect the price of EVs to fall
to much lower levels … far below that of ICE vehicles" - MS
    ** Climate change policies and oil price inflation will
influence governments to take up EV projects. In April https://www.reuters.com/article/us-usa-autos-idUSKBN2BU3BA,
 a Biden administration proposal called for $100 bln in new EV
rebates to boost spending in the EV space - Brokerage
    ** On Thursday, Ford Motor Co  F.N  reports https://media.ford.com/content/dam/fordmedia/North%20America/US/2021/06/03/ford-2021-may-sales.pdf
 184% jump in EV sales for May
    ** YTD performance of auto stocks: Ford up ~75%, GM gains
 GM.N  48%, Stellantis rises  STLA.MI  40%; Tesla Inc  TSLA.O 
down ~15%
    ** YTD performance of EV automakers: Lordstown Motors
 RIDE.O  down ~33%, Nio Inc  NIO.N  down 15%, Fisker  FSR.N  up
~3%

 (Reporting by Karina Dsouza in Bengaluru)
 ((Karina.Dsouza@thomsonreuters.com))