Electric vehicles: Are they disruptive?

As investors, we believe it is important to develop a framework so we can evaluate emerging technologies to protect and create value. In this article, we use the example of electric vehicles (EVs) to illustrate our approach towards analysing emerging opportunities and identifying the investment implications. We have focused on electric vehicles for a few reasons—there has been considerable debate as to whether EVs are, in fact, disruptive; Tesla and its founder Elon Musk have captured the popular imagination; and, a slew of auto-makers globally have announced bigger plans for EVs. In our view, electric vehicles will have significant implications (both positive and negative) for many sectors, particularly automotive and oil, presenting investors with interesting opportunities, particularly in Asia. The most pertinent question for investors is: if we assume electric vehicles will be disruptive, how can we participate? (VIEW LINK)