Scramble begins for the vast financial prize of electric vehicles

Morgan Stanley is betting that electric cars will corner 70pc of the European vehicle market by the middle of century, leading to a drastic upheaval for the power sector and scramble for dominance of lucrative new technologies.

After a rough start, Tesla’s sales in China are booming. It may soon manufacture in Shanghai for the world’s biggest EV market

Global banks in London and New York are no longer debating whether the switch-over will occur. Research reports have shifted to granular analysis over what this means for large swathes of the economy, and who will be the winners and losers as the old edifice crumbles.

A report this week from Nicholas Ashworth and Carolina Dores at Morgan Stanley says a ratchet effect is underway. It is becoming more costly each year to develop petrol and diesel cars that comply with tightening rules on emissions of CO2 and particulates (NOx), yet the cost of EV batteries keeps falling. The crossover point will arrive in the mid-2020s.

Read more: The Telegraph

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