What is Electric Vehicles (EVs)?
Electric vehicles use battery-stored electricity and electric motors instead of internal combustion engines. Major segments: battery electric (BEV, e.g., Tesla Model Y), plug-in hybrid (PHEV, e.g., BYD Han DM-i), and fuel cell (Toyota Mirai). China dominates global EV production (BYD is the world's largest EV maker), Europe is mass-adopting, US adoption is uneven, India is early-stage. Key cost driver: battery pack cost (down ~85% since 2010).
Why it matters for investors
EV transition reshapes auto OEMs (winners pivot, losers struggle), suppliers (engine parts disappear, battery/motor parts grow), commodities (lithium, cobalt, copper, nickel demand), oil demand (EVs eventually displace gasoline), and electricity demand (charging infrastructure, grid capacity). Geopolitics (Chinese EV exports, US/EU tariffs on Chinese EVs) is increasingly material.