Electric vehicle development
With the auto industry’s dynamics changing at a rapid pace, automakers are working to build vehicles that provide higher fuel efficiency. The introduction of high-range electric vehicles gave the auto industry a new dimension. In such an environment, automakers (XLY) need to innovate and implement faster than their competitors.
In this part, we’ll explore how Donald Trump could impact EV (electric vehicle) development.
Will EV development suffer?
If we look back through the history of EVs, we’ll find several automakers launching limited-production EV models and discontinuing them shortly afterward for one reason or another. Many of these car companies even tried to build EVs just to be able to keep selling their traditional gasoline engine cars in key markets.
The scenario changed a few years ago when Tesla Motors (TSLA) demonstrated the vehicles’ true potential. It encouraged other automakers to speed up their EV development programs. Currently, General Motors (GM), Ford (F), Honda (HMC), and Nissan are on the list of automakers (XLY) who are betting high to compete in the EV segment.
During his presidential campaign, Trump didn’t seem to favor environment-friendly laws and regulations. According to several news reports, he also tweeted once that “the concept of global warming was created by and for Chinese in order to make US manufacturing non-competitive.” Later, he called the statement was a joke.
With such views on global warming and the environment, we can’t expect Trump to make favorable policies to promote EVs.
But if EVs are built in the US?
Trump might not take initiatives to promote EVs for an environmental cause. However, he might support an activity that will help him meet his primary goal of creating job opportunities in the US. He might support automakers who are willing to manufacture EVs in the US and create jobs here.
Currently, Tesla is constructing its Gigafactory in Nevada. According to the company, its Gigafactory is going to be the world’s largest battery production facility. Despite high dependence on machines and robots, the factory should create many jobs in the US. As a result, we can expect Trump to favor companies like Tesla.
Similarly, General Motors plans to start the production of the Chevrolet Bolt, its all-electric car, at the company’s assembly plant in Orion, Michigan, in the coming months.
In the next part, we’ll discuss why Trump might not favor the development of autonomous vehicles.