Tesla garners as much media attention as do the Big Five of the digital economy—Apple, Alphabet, Microsoft, Amazon, and Facebook. Tesla’s valuation now exceeds those of major U.S. automakers, and is now positioned to compete in the highly contested category of mid-to-upper priced vehicles. But the resurgence of electric vehicles (EVs) is not just an American phenomenon. It is an even bigger story in a few other countries. Here are a few recent developments.
- Tesla’s Model 3 were delivered in July to the first 30 customers, and the Fremont plant expects to produce 500,000 cars annually from next year
- U.K. said it would ban the sale of new gas or diesel vehicles by 2040, and will phase out all cars with internal combustion engines by 2050
- France said it would stop sales of diesel and gas vehicles by 2040
- China, whose citizens purchase nearly half of the world’s electric vehicles, has mandated that EVs must make up 12 percent of each manufacturer's sales by 2020
- Big cities like Athens, Paris, and Madrid have announced they will ban diesel cars by 2025
- The European Union regulation on passenger cars[i] limits the continent’s average new-car CO2 emissions at 95 grams per kilometer. To avoid the Euro 95/g per car exceedance penalty, manufacturers have little choice but to expand their EV fleets.