WRKO>Audio & Video on Demand>>Joe D'Allegro (Contributor To CNBC, Chinese Electric Cars)

Joe D'Allegro (Contributor To CNBC, Chinese Electric Cars)

Apr 19, 2017|

Joe D'Allegro (Contributor To CNBC, Chinese Electric Cars) by The Financial Exchange

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Well my team co hosts as you know. Don't believe in electric car. They don't think you're ever gonna catch on and invest the money that's being invested in electric cars is remarkable I drive one so I think they're terrific. We're joined by Joseph delay growth who's a contributor to CNBC talking up the Chinese movement towards electric cars. I drew hall yeah. Great hurry. Good so how much money is being invested in electric car start out by Chinese venture capital firms. About one point four billion dollars since then in the last three years but it. Chinese. Terms in this space steps belt. Two thirds of the total invested worldwide. Why don't they are very great players. In and watch it either I I've read stories about the air quality in China so part I'm assuming important. Two and two together but it it it would seem that perhaps it's an air quality issue and environmental issue in China. That would be on the beyond. That certainly be a factor. Most companies and a one apiece. In on the next big thing yup so a lot of these electric sort of sore also. Making inroads into the ate ice space artificial intelligence. Which is gonna be the bigger and bigger taken years to come. It's also. Conducting Tesla has not been bad. It's good for your bottom line as well they're doing remarkably well. What did that one point four billion that you mentioned does that include ten cents investment in Tesla. I know that Clinton cooking and other loose not concluded so actually I'm. But that are really it started putting more respect no if you count it as a sort of in Libya went. Close to six. While. The Abu so China is making these huge investments in electric car manufacturers. But. Fiske or one of it Fiske is one of the companies that they're investing in right. Yes that was purchased last year by auto parts come to Dayton. When you're old yep it was a tie herself except for what. 149. Million yup. And there are going to be really launching a long skirts look through long last year but. Assistant is committed these companies they're I'm. It was premature at and that they're coming out this year and with in the compliments the Benadryl honesty karma. I'm certainly called the Parma repair so yeah basically the same cars before but hopefully not as prone to fire. And they're also they won approval to build cars in China. Up to 60000 the year so that competed group amid a probably never going to challenge to play again late but I'm. Yeah they couldn't. Speak at the beautiful part. But Jolie can handle it Arabic and Chinese people for these cars and knee you know the average income labor the if you look at the income levels in China there. A fraction of what they are in the United States so how much of a market is therefore you know 100000 are vehicles in China. Oh I don't know. In that changes every day it's a between billionaires are Greek. Plummeted every cable every week out. And it's a one point four. Billion people. So that the average incomes 8000 yup. Annually and didn't exchange. So actually it really didn't. Joke and any of these companies gave it a chance to catch up to Tesla it seems like Tesla hasn't insurmountable lead. Well there's room for. Key in this large and Fortis large student for more than one and come in peace based on. Some of these harbors some sort of communal art really. And I've accepted the sinister there's a company called lurid. A dissident certain citizens who are coming out with a car pulled the air and they have some funding it looks like it's. Looks like it'll come out. In 2019. That the Clinton more curious carton Tesla so that's not play in the checklist in. It's also people don't necessarily want whatever what else has. So. But he will accept what they should consider leaving church and probably I mean this Tesla so phenomenal that starts to think they've recently. Surpassed Ford and GM and market apps. They did that pretty insert concerning possible Pete that. There. They sure do thank you very much Joseph for your time we appreciate it gets Joseph delay growth contributor to CNBC. You know. You can you can knock electric cars and I know many people say well I'll never gonna drive and autumn an autonomous car I'm never gonna drive. And electric car. But. You know we may have said that in the past you've made say I've people now I've friends it's at a I'll never get Smartphone. Everybody Smartphone. Yeah me think about technology it it's almost forced the action there I know I'm never gonna get an email address there is that there is a lot of my uncle those Levy now. Yeah the day I mean imagine how few people we aren't on the Internet. And don't have yeah it's it's there they're few and far between and there's no doubt. As much as I give electric cars tonic crap because they generally think the most of them. Over promise and under delivering a lot of cases. It is the direction that things are trending towards the future but it. I think after remember it's still is not a perfect solution the battery technology we have still is very difficult to dispose of you know clean it cleanly. Well in outside Turkey wouldn't gas prices tanked in your buying gas for a dollar 99 a gallon. Like a lot of people at that point said that's the death knell for electric cars but it hasn't what's the the what's happened is. Eat the did the problem is the business is very fragmented everybody's trying to make an electric car now. And there's only room for probably two or three manufactures electric cars. And when you blow it although I disagree completely easy to be more. Yet do we noted with the gas cars you know you you mourned two or three manufacturers of gas powered vehicles you know now it's just so it's so expensive to invest in early on. What does early on and that's why I think a lot of companies just like you only had a couple BO auto companies start out of more than develop its own typically is you kind of have this clip that ends of developing. When it's all said and on in the US. Electric vehicle sales for the month of march ended up totaling 181000 a 107. That was about a 40% increase over what we saw on 26 team okay in 2016 inside the US it's still 181000. Out of what a 1000005 it's yet its ties to 1% in 2016 there were a 158000. Electric vehicles that were sold inside the US who represents about 1% a little less than 1% last year. Of the vehicle sold if we keep up on this pace this year me about. One and a quarter one and a half percent of vehicles that are sold. Bidder going in that electric direction so it's growing. Rapidly it's just still still such a small piece what their approach overall puzzle the growth opportunity for electric cars I would think would be Asia and K and India. Or would would that be the the the place where you're gonna sell a lot of them yet cities with terrible air quality. That's today that's read thanks regards I mean that you're you figure you can see the mandates over there. But even you look at what happened from fifteen to watch sixteen in the US in 2015 or 1161000. Electric vehicles when he sixteen up to 158 were on pace this year. Probably somewhere around 210220. So. It's growing but it's still such a small piece.