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EV's Are Ready For Prime Time

|Includes: Tesla, Inc. (TSLA)

As usual John Petersen misses the obvious point in a recent analysis of the potential for electric vehicles.

The actual conclusion of the OECD analysis is that subsidies may not be needed at all in some EV applications and that in other EV applications subsidies won't help if the product can't eventually exist on it's own. Rather obvious conclusions, but still missing the point that cost is not the over riding factor in personal vehicle purchases. If it were we'd all be driving the cheapest vehicle available. The fact is that EV's can provide a driving experience so superior to an ICE that they are worth a premium to many, just as many options and luxury ICE vehicles are worth a premium to many. The bonus is that EV's provide lowered operating expenses from a much more diverse and cost stable fuel base. With greater volume and continued technological advances EV's will continue to get cheaper as well.

Petersen also tries to suggest that moving pollution away from population centers will provide no benefit, when clearly it does. He also ignores the potential for dramatic reduction in pollution over all that EV's provide.

Petersen of course takes a pointless shot at TSLA, which is clearly on it's way to a successful launch of it's ground breaking Model S sedan, which I'm quite confident can stand on it's own without subsidies at this point.

The desperation in Petersen's articles and the frequency seems to have increased as the launch of TSLA's Model S comes closer.

Disclosure: I own TSLA and I think EV's are cool.

Disclosure: I am long TSLA.