ELECTRIC VEHICLES: ON THE CUSP OF CHANGE SCOTTMADDEN, INC. | 33 Increased EV range and competitive pricing, autonomous vehicles in development, and ride sharing might portend a paradigm shift in vehicle transportation and good news for EVs. Could Convergence Be the Boost Electric Vehicles (EVs) Need? • Information technology is disrupting the transportation sector through the “mobility trifecta:” EVs, autonomous driving, and the sharing economy (e.g., Uber and Lyft) • Tech giants like Google and Apple are following the “Internet of Things” trend into transportation, but remain largely on the periphery for now, although Apple is spending $3 to $5 billion on its mobility project, looking at market entry for an autonomous vehicle by 2020. Meanwhile, Tesla is innovating with software that uploads new features similar to updating mobile apps • Payback on EVs, especially given low gasoline prices, is a challenge with an individually owned vehicle. But analysts believe higher vehicle utilization (through ride sharing) and improved EV range could shorten the breakeven period • Companies are forming alliances and making investments now ›› For example, GM has invested $500 million in ride-sharing service Lyft and is pursuing a national network of self- driving cars ›› There is some discussion of a Google/Ford venture, but nothing has been announced yet 14 3% 12 10 2% 8 6 1% 4 Market Share Number of Cars Sold (in thousands) U.S. Plug-In Electric Vehicle Sales by Month and as Share of Total Car Sales U.S. Plug-In Car Sales Market Share in % 2 0 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 3/14 5/14 7/14 9/14 11/14 1/15 3/15 5/15 7/15 9/15 11/15 12/10 2/11 4/11 6/11 8/11 10/11 12/11 2/12 4/12 6/12 8/12 10/12 12/12 2/13 4/13 6/13 8/13 10/13 12/13 2/14 4/14 6/14 8/14 10/14 12/14 2/15 4/15 6/15 8/15 10/15 12/15 0% Source: Insideevs.com