Kaivalyam

Transportation sector contributes to 18% of CO2 emissions worldwide and 33% of US total carbon emissions based on a National Renewable Energy Laboratory survey. These numbers will only go up with over a billion vehicles on road worldwide and this number is expected to increase to over two billion vehicles in 2050 ( Behrens & Glover, 2012 ). With more people and governments wanting to reduce their carbon footprint, the outlook is promising for companies that manufacture sustainable energy transportations. Tesla Inc is currently leading charge towards sustainable energy products in transportation, energy generation and battery products.  Traditional automobile giants such as BMW, Nissan, Porsche are also manufacturing fully electric and hybrid cars. Although they are introducing electric cars, they are unable to devote resources fully towards developing them because it might cannibalize their cash cows. Daimler’s website reveals that they are focusing on broad range of tradition...

Political factors Tesla was able to set up its Gigafactory 3 in Shanghai, China. The factory is the first wholly owned foreign auto factory in China. This shift, where China allows a foreign manufacturer to build their facility without partnering with local companies may mean that Tesla can tap the Chinese market without paying high tariffs on US cars (CNBC). However, Tesla might still risk retaliation from Chinese consumers amidst US-China trade war.   Economic factors More people are moving towards electric cars to save on the added expenses. All electric cars purchased during or after 2010 are eligible for a federal income tax credit of up to $7,500 ( US department of Energy ). These governmental incentives for electric automobiles could encourage people to buy more electric cars.   Also, the US government has incentives for plug-in hybrid cars from $2,500- $7,500 based on battery capacity. These plug-in hybrid cars have high-capacity batteries that can be charged to ...