21st century investment themes: Electric cars

US-based Tesla Motors, run by billionaire Elon Musk, hopes to boost production tenfold to 500,000 vehicles by 2018. Such is the optimism surrounding environment-friendly electric cars that many say that in 20 years the majority of cars on the road will be powered by electricity. While demand is growing, electric and hybrid car sales are still barely 1% of the most important auto markets. Despite such difficulties, electric cars are likely to be a feature of the 21st century. Rather than invest in a car maker like Tesla, investors may want to focus on the broader supply chain; in particular, the power-providing components – the batteries, which are typically rechargeable lithium batteries. But when it comes to investing in battery producers, it is difficult to see viable investment opportunities that give good exposure to the electric-car theme. Read more for our thoughts on electric cars, batteries, and disruptions in the global auto-industry. (VIEW LINK)