Acceleration Toward Electrification: Tesla 2020

2020 has been a year where many companies have experienced great losses, but Tesla is a company that has seen great success in the midst of a pandemic. Earlier this year, BBC called Tesla the world’s most valuable car-maker. Why? International combustible vehicles are becoming less popular because of their greenhouse gas emissions, which makes battery-powered vehicles more relevant in today’s automotive industry. Evidence is growing that more investors have concluded the century-long dominance of internal combustion engines - “ICE” in industry slang - is headed toward a close within a decade, reports Reuters. Both activists and investors are pressuring corporations to change from polluting combustibles to more eco-friendly alternatives, which has accelerated the ascent of electric vehicles (EV’s). This is where Elon Musk’s Tesla comes in, with the company’s stocks soaring, its market capitalization has surged above US$600 billion. Tesla is now more valuable than Toyota Motor Corp., Volkswagen AG, General Motors Co. and Ford Motor Co. combined, reports the Wall Street Journal.

The Wall Street Journal reports that investors are betting on a field of electric-car startups emulating the rise of Elon Musk’s Tesla. Reuters points out that 2021 will be the year when the automotive industry will accelerate toward electrification.  This is true not only for investors but also for consumers. Last week, a survey made by Consumer Reports on Electric Vehicles highlighted that 31 percent of survey takers say they would consider getting (27 percent), or plan to get (4 percent), an electric vehicle the next time they purchase or lease a vehicle. The survey focuses on American consumers, who mainly like large vehicles that consume vast amounts of combustibles. The survey also reports something really important for American consumers: Drivers want more electric vehicle choices. More than 7 in 10 survey takers agree that automakers should make a wider variety of vehicle types, like SUVs and pickups, which are very popular in US markets, available as plug-in electric models. There are currently no electric full-size SUVs or electric pickups on the market.

What about Mexico? Last week, there were reports of a Tesla plant that was canceled for construction in the state of Jalisco, due to policymaking in Mexico. “Tesla’s decision to select  Austin, TX as a location for its next factory has nothing to do with any policy-making or situation in Mexico,” a source told Entrepreneur. However, Mexico has taken strides to implement more infrastructure for EVs in the country. Two months ago, BMW and Nissan signed a collaboration agreement with the Federal Electricity Commission (CFE) called ChargeNow to promote the implementation of different charging stations in Mexico, which can also be located via Google Maps, reported El Financiero.