A recent report from Rethink X of San Francisco came out which suggests that Electric Cars are going to change the motor vehicles industry dramatically. The report says electrical cars have 10,000 moving parts; the internal combustion engine or gasoline vehicles have 30,000 moving parts. The drive trains have 20 moving parts while gas engine has 2,000. As more and more electric cars are sold, because of the fewer parts the electric cars can last on average a million miles before they need to be replaced. At present, most of us think of changing the vehicle after 250,000 miles or less (presently my vehicle has near that number and things tend to go wrong with the vehicle, even though it is reasonably well maintained). If the average vehicle will last 1 million miles, then the average mile driven is remarkably inexpensive and that low cost variable will drive down everything connected to the motor industry infrastructure.

The vehicles will need less repair people; less dealerships; less financing from banks; less people in the car business. In addition, they will use less fuel (elecrical top ups) which means we need less gasoline or fewer gas stations. At the present time, it is relatively easy to buy stocks of companies which own dealerships – within the next 5 years you may want to look for alternatives. People still need to get around by if the report is near to being correct, the entire industry will be change or could easily be disrupted. If it is disrupted then the electrical car industry will grow faster than we all think it will.

Linking to dividend paying stocks, more electric cars are great for generators of electricity of utility companies, as time goes on you may consider moving funds from energy companies to utility companies because the cars still need fuel to move.

There are more questions than answers, till the next time – to raising questions.