Another influential voice has joined the chorus predicting that electric vehicles (EVs) will soon disrupt the global auto industry. A team from financial giant UBS took apart a Chevy Bolt and published an in-depth cost analysis of the new vehicle (details). However, its report went much further, making some bold predictions about the future of the automotive market.
*This article comes to us courtesy of Evannex (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.
The immediate purpose of the exercise was of course to estimate GM’s cost to build the $37,000 vehicle. UBS said that the Bolt’s electric powertrain is $4,600 cheaper to produce than it previously estimated, “with much cost reduction potential left.” However, GM is still selling the Bolt at a loss. “We estimate that GM loses $7,400 in earnings before interest and tax on every Bolt sold today, mainly due to a lack of scale,” wrote UBS’s analysts.