[Music] clogged arteries the way the world moves is contributing to rapid climate change how bad is it the United Nations says nearly 25% of emissions comes from cars buses and trucks plus oil factor US oil growth already showing signs of peaking and with geopolitical risks uncertain oil volatility may be too much to stomach it all has us thinking of less oil reliance and more self reliance and if necessity is the mother of invention electric vehicles are the answer to many of the world's woes I think it's basically financially insane to buy anything except an electric car that is upgradeable to autonomy regardless of what you think of Tesla CEO Elon Musk he's been on to something for more than a decade and his other car makers scramble to catch up and outdo electric vehicles are one of the most competitive and innovative markets to be in [Music] welcome to EVs on the brink of change I'm Alec Steele over the next hour we will explore the world of electric vehicles our V's right for the mass adoption both promised in pursued is the innovation and investment really there and how do you get behind the wheel we'll look at subsidies infrastructure and global governments first up it's important to keep in mind Eevee's are not necessarily new as early as the 19th century many cars on the road were already electric and appearing in newspaper ads like this one in Pittsburgh but in 1908 Henry Ford introduces the gas powered Model T and until 1927 Ford would perfect the assembly line and build some 15 million Model T cars it won't be until the mid 60s when we start seeing electric cars come back mostly concept models like the honey kilowatt in the late 90s the world gets its glimpse of hybrids among them the Toyota Prius which rolls into America dealerships in 2000 three years later Tesla forms and in 2008 the company debuts the Roadster sports car it's followed by the Model S Model X Model 3 and more at the same time Asia proves to be a dominant player the Nissan Leaf becomes the world's best-selling easy in 2010 and China becomes the world's biggest evie market ever it's billionaire investors include Jack Ma and Warren Buffett it all brings us to today Bloomberg New Energy Finance one of the most respective sources on the subject says China will top three million evie sales in four years the US 1 million more than 230 IDI models are estimated to be on the road by 2021 so what exactly is an Eevee how does it work and what's in it here's your primer electric vehicles a car that runs on batteries they work in lots of different ways here's one of them take a Tesla a 300-mile battery pack is made up of 7,000 lithium-ion batteries in the battery's tiny ions of lithium moved from an object called the cathode to the anode the batteries made up of nickel cobalt lithium and aluminum this generates a flow of electrons or electricity these batteries pack a serious punch they have a large charge and discharge rate so they produce a lot of energy and you can reuse them a lot to prevent the batteries from overheating and Evie uses a cool liquid that flows between the batteries then an inverter takes this power and changes it to an alternating current think of it as a voltage that changes from there it produces a rotating magnetic field in the motor and voila you have power the drivetrain distributes that power to the wheels so you can drive your car any electricity that isn't used like if you slam on your brakes is sent back to the battery pack the $36,000 Chevy bolt goes 238 miles on a charge in the top-tier Tesla Model S can go 315 miles after that you get a charge it about 30 minutes at a station and almost a full day if you plug it into your home the cool part is the battery sits low and flat on the bottom of the car think of it like a skateboard this lower center of gravity helps balance your driving so does it all work well the u.s. average cost of gasoline is 2 dollars and 55 cents a gallon it's 121 for an electric gallon you save 50% now prices do vary and the more miles you go the more expensive the car can be and prices can range anywhere from thirty thousand to 180 thousand but the hype is hot the personalities are big cars are sleek is it worth it now that we've seen how easy s work who's actually driving them Mary nickels chair of the California Air Resources Board paints the picture the biggest problem we have with electric vehicles is nothing about the cars or even about the charging the biggest problem is that people don't know that they're out there you have to hit critical mass so people actually see enough of them governments from us to Norway to Germany to China have spent billions in subsidies to convince drivers to buy v's with all the you know goodies that the government is giving them and some of the states now sort of providing some significant incentives for them as well the consumers are still not buying them where they are buying them is China the biggest market in the world sales of evie cars buses and commercial v's soared to 1.3 million by 2018 a huge increase in just a few years wong gong is considered china's father of electric cars the sale of new energy cars has increased nearly 60 percent which is very fast growth if there was a signal it tells us that we need new energy cars the worries about v's are the same two people battle in the 70s reliability and cost if you buy a thirty thousand dollar electric vehicle it can take you five to six years to get paid back for that investment cheaper better batteries and more charging stations can help with that and in the meantime car makers are trapped they have to spend billions of dollars to develop EVs which aren't profitable yet and are forced into partnerships with rivals to try to accelerate that profitability whether they like it or not the business part of you wouldn't do these things but that's because the leadership part of you requires that you do it you have to invest in things that are uncertain that before they're ready because when they are ready you can't catch up and whoever finds the right formula could win big will they be at the forefront of another revolution or will their Eevee dreams get crushed like they did a hundred years ago Ford has made a commitment to be carbon neutral by 2030 so we're actually leading our industry by asserting that the time is right for the auto industry to take this position the company recently made waves with an Eevee version of its iconic Mustang the machi the design challenge was to take what has been missing in electric vehicles and create the passion that follows with Mustangs and marry those together Ford's goal is to have 40 percent of all its models be v's in 2020 we think that by the middle of the next decade it'll be 50 percent of vehicles sold will be electrified to some degree you see a big market for of course ibrid vehicles and that will be our dominant technology into the future store Toyota hopes to sell 5.5 million v's globally by 2030 what is the next big thing for folks wrong if this is it it's I think the electric car which is really the best choice for many of our customers Volkswagen just increased its budget for EVs by 36 percent to 60 billion euros for the next five years with the goal of producing 80 models by 2025 about 15 to 16 percent of our sales will be coming from Eevee's there is going to be a revolution there is going to be this new way of coming and when you have that you want to position yourselves at the front of the line and it's trying to take on the low end of the market with a car priced under $33,000 audio loans can introduce 20 models in five years g20 electrification is here trending in connectivity so what's coming next a lot a lot and fast coming up big predictions big cars big money who's buying [Music] you [Music] [Music] welcome back I'm Alec Steele you're watching v's on the brink of change Eevee's have transformed a lot since the Model T so where does it go from here I [Music] think it's really too early to pick you know potential winners and losers in this and so it really is a mess for the automakers right now Dave Sargent is vice president of global automotive at JD Power and spends his time researching global autos those were first to market often aren't the ones who are in successful in the long term I mean look at Tesla it's had a lot of wins recently it's model three was the best-selling evie in the US last year leaving its other models and the competition in the dust the problem lies in profitability it seems like the more cars Tesla sells the more money it actually loses revenue per unit now fell below $54,000 in the third quarter really putting pressure on other car companies will have very strong products coming up and you know the penetration is growing as well it takes a period of time and people have different assumptions on how quickly that's gonna grow but we do think this is a market that grows and we will take our rightful share of that if you ask me who's the biggest competitor to Tesla we don't think it is Toyota or General Motors right now we think it is large tech firms that are worth a trillion dollars are worth more than all of my auto companies combined these are the types of companies that have the ability to attract talent and capital and frankly to lose money if necessary to take on someone like Tesla sounds perfect right people want the cars car companies make them done not so much here's the problem car makers are gonna spend at least 141 billion dollars on electrification and right now most of the cars really can't turn a profit us consulting firm McKinsey estimates than evie cost twelve thousand dollars more to produce than regular cars so it's a vicious catch-22 to make money car makers need more people to buy them to buy more v's people need more choices more choices means producing more cars at a loss companies also need input costs like batteries to come down analysts estimate this could take more than five years in the meantime companies are forced into partnerships with rivals to try celery profitability whether they like it or not ESA owner pooja wants to have 80% of all its models be electric by 2023 and wants to join forces with TIA to tackle this pricy shift this transformation for the industry is going to be a challenge for many OMS it's going to be a kind of Darwinian period for the industry but hold on this is going to be bumpy for the next few years I think that the notion of any one company going alone into this new future is something that you're probably not gonna see a lot of Ford and Volkswagen recently joined forces to develop electric and self-driving cars the business part of you wouldn't do these things but that's because the leadership part of you requires that you do it Ford will build battery cars on VW's platform and VW will invest 2.6 billion dollars in Ford's autonomous affiliate agro AI it just makes sense for even for two big companies to share some of the efforts which will make most companies faster and more efficient Volkswagen and its chinese JV partner are investing more than 4.4 billion dollars in 2020 to rev up production you also immediately have the market to scale up and it allowed that group of companies to get faster to market with affordable technology that now may actually give them a little bit of a competitive advantage for a few years versus trying to do it alone they happen to make big investments into a very uncertain future which nobody really likes to do and those v's that have come to market haven't been able to knock Tesla off its throne Mercedes just put off its US debut by a year so to fight tepid demand original equipment manufacturers or OMS need each other McKinsey says two of them Co developing a dedicated evie platform can reduce costs by fifteen hundred to two thousand dollars per car now so far a lot of these partnerships have been with battery companies so car companies like Volkswagen BMW and Volvo and Tesla are signing multi-billion dollar battery deals as they scramble to secure capacity GM is the latest teaming up a South Korea's LG Chem to build an IV battery plant in Ohio this battery plant is a very important part to providing the volume for the electric vehicles we'll be producing in the United States that will be very significant we are bringing the best battery technology to the joint venture to create a future together to share the vision that Marybeth laid out all future electric car companies hope to reduce material costs and find synergies to free up more cash to invest in TVs some auto companies really have a high level of urgency and have kind of you know accepted that they need to go all in on this but they're gonna require some planning and some support from regulatory bodies governments it's not gonna be easy unfortunately Volvo and Gigli are merging their engine operations into a standalone company Volvo plans to roll out a new evey model every year until 2025 to shrink its carbon footprint and spending almost 50 billion dollars to do it and it's the established car companies that need the help I think the biggest losers would be companies that have to defend a declining business model that is at the margin obsolete and or doesn't have the backing from the state or a national policy to be able to absorb losses from flipping the business model it might sound like the average auto company and it is and that's why experts think it's big tech companies that will come out as big winners you're in the business of monetizing the utility of the platform of the mobility device that's increasingly going to be an electronic device not a mechanically engineered powered by an internal combustion engine it's a electronic device powered by a battery at the Consumer Electronics Show in Vegas this year Amazon Intel Qualcomm and blackberry all made their pitch to car companies enticing them with data crunching services like better chips and sensors for driverless cars we believe the real commercial opportunity will be to add autonomy to every car as a convenient feature with the driver behind the wheel tech can also help with mapping and souped up navigation systems Intel says the market for such data will be worth as much as three and a half billion a year by 2030 it's a computer on wheels it's a device that can be monetized beyond its sale as a mobility device and as a digital device coming up would you buy an Eevee without a subsidy this is a global race right now for leadership in this industry [Music] welcome back to EVs on the brink of change last year the world bought more than 2 million EVs in 2025 they'll buy 10 million and by 2040 56 million as they continue to gain market share but to do it the cars need to get cheaper so these bars show what percentage of the car's price comes from its battery right now that's a 35% now this white line here shows the cost of a regular internal combustion engine and shows that v's are gonna cost more until 2024 then there's parity V's get a lot cheaper and the cost of batteries come down now keep in mind a lot goes into this if you had a home charger it delays this price parity by one to three years if you're in China Eevee's will stay more expensive for longer because car prices are lower than in other countries and let's take the US you get a $2,500 to $7,500 tax credit depending on the size of the battery when you buy an e V and it's available for the first two hundred thousand cars sold by manufacturer and states can offer even more help take California it CB sales have surged since 2017 and if it were a country it would be the second biggest buyer of EVs in the world we won't make it to healthy air without a much greater penetration of electric vehicles so we had to be out there beating the drums and then we had to put our money where our mouth was by coming up with incentives Mary Nichols is the chairwoman of California Air Resources Board and is a big driver of the state's clean air rules it's not just the monetary incentive it's the fact that you can get a sticker to go in the carpool lane even if you're only a solo driver that is actually turned out to be the biggest incentive that is the thing that has drawn more middle-class commuters into making that choice to go electric now Senate Minority Leader Chuck Schumer is floating a four hundred fifty four billion dollar plan where customers will be given a substantial cash voucher to trade an older gasoline cars four V's or other hybrid options when the evie tax credit was originated it was literally the the author's went to the Senate floor and said this is a bill to help us get off of foreign oil we want to help spur the production of electric vehicles Tom pile is president of the American energy Alliance and is ardently aunty subsidies and a huge proponent of a free market system one of the authors former senator hatch said we specifically are limiting this to two hundred thousand vehicles per company because we don't want it to be one of those things where everyone just depends on the subsidy we want to spur the technology and then let the industry go from there many credits can wind up in the hands of the wrong people the US Treasury Department watchdog tigt a found 70 million dollars was given to car buyers of filing improper claims how this happens is still unclear but the report did say the IRS didn't have a good way to prevent it Senator Bill Cassidy also criticized these credits saying you have to realize that electric car vehicles are being bought by the well-off and being subsidized by those who are less well-off the bottom line is the government shouldn't be getting into the business of sort of picking winners and losers amongst industries or technologies and even with these subsidies sales of v's only reach two percent of total car sales in the past 10 years and then there's Europe from Norway to the UK sales have jumped in the first half of 2019 V's make up 42% of new car sales in Norway the country has a target of zero emission cars making up all new sales by 2025 there's this big push on reducing co2 emissions from the European Commission and the targets that they have set for 2030 for the auto sector you can't really meet them without a lot of EVs in the mix you can't really get there with internal combustion engine improvements alone Europe Norway other those countries are very different in terms of how that they're structured Norway is one of the leaders it exempts evey purchases from a 25% value-added tax and puts higher taxes on gasoline cars forcing consumers into the evey option their citizens have a much higher level of tolerance for taxation and sort of government getting involved in their lives it's a very different market there - it's a much smaller country they're more concentrated in in you know urban areas Germany has now overtaken Norway in evey sales just barely the country also earmarked 54 billion euros to fight climate change and part of that is subsidies for v's you can get a bonus now of as much as 66 hundred dollars and the auto industry covers half the costs this should provide support for as much as 700,000 V's you're starting to see some of the bigger car market so places like Germany the UK and France you're still only a few percent of sales there but it's rising quickly China started subsidizing v's for the government and public fleets back in 2009 and for regular car buyers in 2013 now the subsidies range from $5,000 to 8500 depending on the range of the car and were paid directly to the manufacturers the goal is for new energy vehicles of v's hybrids and fuel cell cars did 7 million units by 2025 the Chinese government sees promoting electric vehicles is a major strategic priority and I think there are four reasons one of them is cutting local air pollution and that's a crisis in many Chinese cities today David Sandalow from Columbia University is an expert in subsidies and is optimistic a second is fighting global warming and the Chinese government has stated its commitment to that a third is reducing their oil imports China today is 70% dependent on oil imports and then a fourth is positioning their industry for the global market and electric vehicles they see electric vehicles as an industry of the future China spent more than 30 billion dollars subsidizing v's and it's paid off sales have soared since 2018 those types of subsidies make a big difference however this could all change China now faces a 50% cut in national subsidies and a complete phase-out by 2021 and it's had an impact sales of v's are now down six straight months since the subsidy cut started in July the subsidy going away in the next 12 to 24 months all being dramatically reduced will have a impact on the the players that's coming to market Brian goo is a former Wall Street banker and is now president of X pang and evey company in China these players will not have the window like what we had to access the market with the support of the government so for them to have a product a year from today they will be faced with a lot of competition and very small government support China is back down somewhat saying subsidies won't be cut this July at the same time China is funneling more money into expanding the number of charging stations China has eight public chargers for every one in the US the darker the pink the more charging stations an area has and the u.s. really only has California in the long run they actually will be good for the whole sector because subsidy itself is actually benefiting the low end players and actually getting rid of the sexy or reducing subsidy forces consumer to focus on the product differentiation and quality and value proposition which is that something that we are emphasizing as well it's a similar story in the u.s. once a car company reaches 200,000 in sales the subsidies disappear now both GM and Tesla have hit that mark and they saw their quarterly sales fall as a result at the end of the day it's the manufacturers who are getting the subsidy because even though it doesn't go to them directly this is the only way they're gonna be able to sell these cars so in the early stages you have to have the subsidies when you get the subsidies out of the system you're gonna see a desire for these car companies to race to get a better product out on the market that's more affordable there is a push to extend the $7,000 credit through 2024 and only limited after a car company sells six hundred thousand vehicles which would give companies like Tesla a lot more runway I think the United States has got tremendous capacity to lead the world in this area coming up the world leader in v's is China but for the country it's not a luxury but a necessity [Music] you [Music] [Applause] [Music] welcome back to EVs on the brink of change Elon Musk is celebrating his first sense the plan outside the US and Shanghai and Tesla could now be a dominant threat to one of the most competitive TV markets in the world [Music] Eevee's make up 5% of new car sales in China and the government wants to get that number to 25% fighting pollution is a priority for President Xi Jinping any harm we inflict on nature will eventually return to haunt us this is a reality we have to face hundreds of thousands have died in China from respiratory infections lung cancer and Stroke all attributable to air pollution China is the market that's leading the commercialization of electric vehicle technology and used its future as an electric future where there's the will there's the money there are hundreds of car companies in China backed by some of the biggest billionaires in the world that all want to take on the number one spot like X paying and it's EVG 3 a Tesla competitor at half the price if you are one of the top companies you have no trouble extracting capital Jack Ma Alibaba put its money with Wall Street veteran Brian gu who leads X paying the e V hopeful raise more than nine hundred million dollars in 2019 and another 400 million from companies including Xiaomi most of players actually are fading away because this business actually requires a lot of resources a lot of commitment and I don't think most players will be able to attract the resources and talents and have the ability of building organization to meet that requirement X paying sold over 11,000 cars so far 2019 the China auto industry is a relatively recent creation this is a it is the world's largest auto market but it wasn't that just 15 years ago when I moved to China in 2004 it was one-tenth the size of what it is now and it's all because of this man wangan who became chief scientist of the Eevee project in 2011 you know someone audio of him coping with climate change is our common responsibility we must recognize that we are one of the world's largest emitters of carbon dioxide which is why we have been working hard in this area for more than five years China is seeking to create a new propulsion backbone because it's in the domestic advantage to do so to be the world's production base and consumption base for electric propulsion gives China and inside lane to the future of mobility China is considering a target of 60 percent of all automobiles sold in the country to run on electric motors by 2035 and the nation is building at least 20 av towns for car makers and other industries we have a responsibility to reduce emissions we have a responsibility to contribute to ecological civilization a responsibility that might not see all Chinese evie companies survive the AIC blue Park new energy technology China's biggest maker of pure electric cars forecast 2019 loss in his earnings update warren buffett's back BYD in october reported an 89 percent decline in third quarter earnings and one profit could fall as much as 43 percent in 2019 the companies that compete here have relatively short histories they're more willing to embrace a new technology solution because it's a more level playing field there's less history to have to overcome to catch up with the incumbents and then there's neo back by Ponemah China second richest person and his company Tencent they led a 1 billion dollar investment round in 2017 the company now faces losses of almost six billion dollars over the last five years you can't ask a four or five year old toddler to make money I think it's quite difficult cost overruns week sales and a recall for about a quarter of its cars hurt neo forcing it to cut 20% of its workforce if you look at Tesla that has been established for 16 years neo has only been established for over four years I'm sure that we don't need over a decade to make profit the company shells out 1.2 seven million un for each car that sells for barely a third of that and it also recently launched more promotions like 0% interest rates for three years and guaranteed subsidies for cars registered before February and they're all trying to compete with Tesla the top 10 selling V's in China are locally branded Tesla's not in that list we intend to make continued making a significant investment and increasing the investment in China and Tesla isn't the only foreign company that wants in battery technology already is deployed at scale in China you can expect all the Eevee subsystem components to be localized in China so that gives China a supply chain advantage when it comes to supplying not only the components for production in China but also components for production of v's anywhere in the world audio plans to start selling nine new energy vehicle models in China during the next two years BMW would build the AI x3 crossover in China next year and is working with a Chinese partner to electrify its mini model and Daimler is partnering to grow it's not just about capturing the Chinese market we also want to be doing R&D there or R&D team is growing we're looking at a supply network which is very interesting Daimler and Chinese company Jie Li recently established their joint venture with 780 million dollars in capital to partner in self-driving cars we will develop smart together and you will see the first fruits of that cooperation with new generation of products coming in 2022 so we are quite excited about that the world owes Elon Musk and his company a debt of gratitude that it has demonstrated that there is a market for electric vehicles coming up all charged up how infrastructure will play a key role in the adoption we're getting a little bit range phobic here and there and it's always the reason behind it is that you know the infrastructure is not actually progressed as fast if you thought it should be [Music] you [Music] [Music] welcome back TV's on the brink of change I'm Alex teal how quickly the world moves two V's depends on money right now I can take five to six years for you to get paid back for buying a $30,000 Evy in the u.s. to get that cost down battery prices have to fall the good news battery prices are down eighty-nine percent since 2010 the bad news is that might not last here's the problem lithium producers went full speed ahead and production betting on rising demand from v's that demand did not materialize as fast as the industry thought creating too much lithium voila lower prices about 70% of the world's lithium is in South America and in the hands of just a few companies and you find it in two ways traditional mining or in brine where you pump large amounts of water and churn up salty mud this brine is then left in large pools to evaporate before processing it can take three to five years for a new mine to be up and running so investment needs to happen in the next year and a half to meet demand we estimate that out of the total demand by 2025 around 80% will be electric cars which is a very significant bloomberg nef thinks the lithium battery market could be a one hundred sixteen billion dollar market in ten years but for that to happen prices have to fall in 2019 an average battery pack was one hundred fifty six dollars per kilowatt hour and by 2030 it could be sixty three dollars the cheaper the battery the cheaper the car the faster the adoption rate another issue with banking on commodities like lithium cobalt and nickel is that they might not be as clean or as green as you think the 20th century was the age of the internal combustion engine the 21st century will belong to the battery by 2040 the majority of cars sold around the world will be powered by batteries they'll emit far fewer pollutants than gas guzzlers but the elements used in batteries have their own shower lithium is a water guzzler if lithium prices stay low it may not be worth the cost to mine the industry would likely opt for the more environmentally riskier method of pumping salt water underground to extract it a nickel is used in lithium ion battery cathodes it boosts energy density to let electric vehicles travel faster and farther but it's not clear whether miners in Indonesia can even keep a steady stream of nickel coming and cobalt presents an ethics problem it helps keep the battery cool during charging and discharging but they're terrible conditions for miners in Congo the world's top producer some of the workers that reporters have found there are as young as four years old cleaner car might not be made more cleanly another big problem sometimes lithium-ion batteries that can catch on fire lithium-ion can overheat and release an oxygen which causes a fire now some of these fires can be traced to manufacturing issues in the battery cells or installation issues or even overcharging one possible solution is changing the fluid within the battery typically a liquid electric ions around to charge or discharge a battery another option is solid-state batteries which removes this liquid and uses ceramic glass or another solid material solid-state batteries could reduce the flammable risks and allow for thinner and smaller packs that can fit right under the car seat the energy density in our solid-state battery is over twice of what we have today which means the space if you have the same energy let's say a 100 kilo watt hour we would take only half the space and about half the weight and the finally what our battery it's a lot lower cost right now we estimated depending on who you would quote it could be about half the price Goldman says it could take five to ten years for solid-state batteries to become a mass-market if you get solid-state batteries you can put them all over the place you can even integrate them into the structure of the vehicle so there's a whole new set of opportunities as we move to solid state batteries the third problem is charging stations there aren't a lot of them and those are there aren't fast enough Bloomberg an EF says by the end of 2018 there are more than 600 30,000 public charging stations around the world and China had four hundred and sixty thousand of them only a quarter of public Chargers that do exist ranked as fast while the majority are in mid-range the goal just one minute Auto Chiefs say infrastructure is one of the biggest headwinds they face we have to kickoff initiative to start this charging infrastructure I would love to have more collaboration in Europe and all over the world with government's actually get more speed in the infrastructure we will cover Europe with a fast-charging network every 120 kilometers we're also providing access to home charging solutions and to public charging networks and we're getting a little bit range phobic here and there and it's always the reason behind it is that you know the infrastructure is not actually progressed as fast as you thought it should be we work really closely with the car companies and say how many you gonna be deploying in the United States where are you gonna be deploying them and then we go and make sure that we build there so that people will buy them and feel comfortable with the charging infrastructure is there evie go builds fast chargers at 50 kilowatts and partners with companies like Nissan and GM we partner with lyft we partner with with maven General Motors short-term leasing program that provides v's to uber and lyft what we're seeing is that that is increasing dramatically and then not just in California but in cities like Atlanta and Seattle it now has more than 1,000 chargers in 34 states and focuses on retail we have a partnership with Albertsons Safeway we have a partnership with Kroger we have a partnership with Whole Foods why does that matter because the use case for fast charging exactly matches the dwell time of going grocery shopping you go to the grocery store you plug in you get your chicken your salmon your vegetables you come back out in your car's charged there are others try to em formed in 2001 by members of a solar car racing team makes pumps that add more than 215 miles of range in ten minutes Tesla's promised a 75 mile charge in five minutes [Music] and lucid makes lightweight batteries for racing cars but a top speed of 174 miles per hour on one charge it has 20% more battery density and using that technology and consumer cars could be a game-changer for charging another option is going wireless for over 10 years we've been perfecting the wireless charging of electric vehicles Alex cruisin leads a team of MIT scientists at WiTricity to connect mobile electronic devices to the electric grid what it basically lets you do is move power at a distance efficiently from a coil that would be say on the floor of your garage just think of a simple pad maybe the size of a pizza box a to a receiver that would be designed in and built into the bottom of the car Toyota is invested in the company and license that technology and BMW use it on their 530 eaj performance so our view is we're gonna make charging completely transparent it's something you just never think about coming up next the road ahead for v's from the whimsical to the wild from self driving uber to your flying taxi I think we're gonna see lots of change much more so in the next 10 years than we've seen in the last [Music] you [Music] what really gets me excited is thinking about the future of mobility I think we need to have a Industrial Revolution 4.0 plus four climate there is going to be a revolution there is going to be this new wave coming we're looking at everything being disrupted no driver internal combustion engine giving way to electrification flying cars potentially it's a matter of I think a relatively short period of time where there won't even be a driver we believe in five to ten years a car we differentiated with how smart they are the vehicle will be operated remotely by somebody sitting behind a computer screen welcome back to EVs on the brink of change I'm Alec Steele there are varying predictions as to how fast the adoption will be Bloomberg EDF is the most aggressive with well over 500 million in sales by 2040 essentially car dealers are gonna be bankrupt mechanics are gonna be bankrupt by about 2025 it's not gonna take that long Tony Seba is the author of clean disruption of energy and transportation a Silicon Valley entrepreneur and an instructor at Stanford University and has made a career of studying technology disruptions any capital investment in the internal combustion engine value chain today is going to be wiped out this is gonna play out over decades this is not going to happen next year it's not gonna happen the year after we are still at the very very early stages of consumer adoption the future's bright but there's still a long way to go it's interesting that people think that disruption and technology innovation is a zero-sum game that you know there's one winner and one one loser Catherine Mann has worked in every economic job from the Bush administration's Council of Economic Advisers to the chief economist at the OECD to the global chief economist at City of course it's can drive economic growth because there it is a new technology so it's augmenting it's expanding the sector it's expanding the you of what an automobile is it's not replacing all of the gas powered vehicles oil demand is gonna drop by about 30 to 40 percent by 2030 prices are gonna drop to about $25 as soon as 2021 Deepwater oil cannot compete and also the pipelines in the refineries that serve those assets are also going to be stranded for purely economic basis you can call it disrupting that sounds bad but in fact its enhanced technology its innovation it is responding to a need there's pretty profound impact if we do see the degree of electrification out to sort of 2040 oil demand in passenger cars and oil demand in trucks that Peaks this side of 2030 and that has pretty profound implications for the energy sector it doesn't mean that it immediately drops to zero today it's really hard to talk about EVs without talking about their sibling a v's autonomous vehicles in theory your car would have autonomous software that could be turned on updated and used with a flick of a switch IVs are not exclusive to V's but when car makers talk of the future these two go hand in hand I think it's basically financially insane to buy anything except an electric car that is that is upgradeable to autonomy it's just nuts here's how they work there are five levels let's call the computer Jayne level one you and Jaynes steer and accelerate together level two Jayne steers and accelerates and decelerates but you still have to stay awake level three Jayne takes on the added responsibility of monitoring your driving environment you can check out but be ready to control the car just in case level four high automation Jayne now drives no backup driver needed and level five full autonomy Jane does everything you take a nap baby you're not even in the car it could eliminate 94% of crashes caused by human error city says level four on personal cars could be deployed by the mid-2020s you see these various consortium forming around the world to try and jointly develop these and defray some of the costs of going into it so some of it is around a story that automakers want to tell about them being innovative and them not being left behind in the move to a more shared connected future Tesla is by far the most ambitious logging about three billion miles on autopilot but it's expensive companies have already spent 14 billion dollars on external investments over the past nine years with most automakers targeting commercial launches around 2022 the fact that you have with a technology story you have a human behavior story and you have a regulatory story means this probably still does take some time before it's really moving the needle on global auto markets the bad phantom breaking not stopping for a hazard the good evasive steering emergency braking and driver alerts there's also kind of this broader risk to society that if you do really enable level for highly autonomous vehicles do people just drive around a whole lot more you're probably going to see more regulations come down to ensure that we don't create this urban congestion nightmare Toyota has spent most on AV technologies about three billion dollars on things from sensors mapping mobility developers and services now BMW Daimler and Volkswagen bought here technologies in 2015 for three billion dollars the biggest av deal ever and General Motors is also among the top five after buying Cruze in 2016 for 581 million the AV company now has a 19 million dollar valuation Volkswagen has a 2.6 billion dollar investment in ford's autonomous company argo a i which it bought for 1 billion in 2017 and is investing more than four times that much through 2023 [Music] we have to expand our sense of how is wide sharing going to affect the overall transportation marketplace where the world of EVs and AVS intersect is in ride-sharing or at the catch-all phrase mobility this can mean you using an uber to get to work to a driverless car delivering your lunch in order to make the large shift to get to like two percent Evie adoption in the u.s. to 10 20 percent it's going to be the regulatory purview of a dense community like a city going after logistics taxis shared mobility fleets City thinks the u.s. ride-hailing market is already 150 billion dollars and taxi Avs could increase that number by hundreds of billions Bloomberg any up expects shared mobility services to rise to 19 percent of total kilometers traveled by passenger cars by 2040 there is a real crossover between electrification and shared mobility so just as an example you're already seeing DD in China the Chinese equivalent of uber already has a million electric vehicles on its ride-hailing platform there's about four million EVs on the road in China so a quarter of all EVs are using this shared mobility platform you'll see essentially Robo taxis going around and just like you Hale and over our lives today or a DD are you gonna hell are over taxi neuro a self-driving California startup backed in part by soft banks vision Fund wants to create lightweight cars that will deliver groceries and meals to your home it will also deliver food from Kroger and Domino's in Houston next year city says that any evie that doesn't have an AV platform will fall behind at any AV Robo taxi that doesn't run on an Eevee will suffer an eventual cost disadvantage and lack of consumer enthusiasm just no one can seem to agree on when this is all happening the combination of economics pressure from cities and also sort of corporate image concerns mean most shared mobility applications are gonna go electric it's just a question of the exact timing but I think that comes pretty quickly [Music] the next step to mobility after EVs and Davies is flying cars we like to say that this is closer than you think we're aiming to actually launch our aerial ride-sharing network in 2023 uber and hyundai tuned up at CES to develop a flying taxi we have a network of now eight partners Hyundai's are a partner that is joining in working on this together the taxi would be able to take off and land vertically accomodate for passengers and crews up to 200 miles per hour and to be fully electric with a range of 60 miles we've endeavored to do is really focus on this being a partnership driven approach the vehicle companies are the ones who aren't really going to be investing to bring these vehicles to market and what we're able to do is leverage the core technology that we have in a way that allows us to build the connectivity behind the scenes and then bring those vehicles into the platform Boeing Airbus Daimler Toyota and Porsche are all investing in the sector and city things sales of air taxis could reach five billion a year by the end of next decade so what will the next decade hold experts agree there will always be a need for cars and trucks but for the average person the sedan will disappear so whether it's a battery-powered evie a fuel cell hydrogen car Robo taxi or beyond there is no doubt the vehicle that transports us and how it transports us is on the brink of change I'm Alex teal and thanks for joining me this hour as we look at electric vehicles from all the angles after when your primary mode of transportation will come to an electrical currents over gas we'll have to see where government's infrastructure incentives and innovation derive us you [Music]
