Automotive Energy Storage

COR 2201: Technology and World Change

Course Instructor: Professor Neo Kok Beng

AY 2020/2021 (Semester 2)
G4

Submitted by Group 4
Lai Jye yi
Maple Tan Jie Er
Tino Teo Yu Zhi
Wesley Kam Wei Lee
Wu Wengang
 Contents
1.0 Introduction
1.1 Technologies in the Industry 3
1.1.1 Internal Combustion Engine (ICE) 3
1.1.1.1 Dominant Design for ICE: Ford Model T 3
1.1.2 Electric vehicles (EV) 3
1.1.2.1 Dominant Design for EV 3
1.1.3 Hybrid 4
1.1.3.1 Dominant Design for Hybrid 4
1.1.3.2 Future of Hybrid 4

2.0 S curve 5
2.1 Performance Perimeter 5
2.1.1 Energy Efficiency 5
2.1.2 User Efficiency 6
2.2 Events 6
2.3 Interactions between S curves 7
2.3.1 Creative Destruction (1920-1935) 7
2.3.2 Robust Coexistence (projected, unlikely scenario) 7
2.3.3 Illusion of Resilience (projected 2038) 7
2.3.4 Floating S curves 7

3.0 Current landscape of vehicles 8

3.1 Technology behind vehicles 8
3.2 Types of vehicles 8
3.2.1 External Combustion Engine 8
3.2.1.1. Steam vehicle 8
3.2.2. Internal Combustion Engine 8
3.2.2.2 Coal gas 8
3.2.2.1 Gasoline 8
3.2.2.3 Diesel 9
3.2.3 Hybrid Vehicles 9
3.2.4 Electric vehicles 9
3.2.4.1 AEVs 9
3.2.3.2 PHEVs 10
3.3 Technology behind Electric Vehicles (Present) 10
3.4 Innovation type of EVs 10
3.4.1 Disruptive Innovation 10
3.4.2 Electric Vehicles as Radical Innovation 11
3.5 Strengths of Electric Vehicles 11
3.5.1. Sustainability 11
3.5.1.1 Predominant market trend -- going green 12
3.5.2. Cost of ownership 12
3.5.2.1 Fuel efficiency 12
3.5.3 Superior performance 12
3.6 Weaknesses of Electric Vehicles 13
3.6.1 Price 13
3.6.2 Range Anxiety 13

1
 3.6.3 Insufficient charging infrastructure 13

4.0 EV industry stakeholders 13

4.1 Major industry players 13
4.1.1 Carmakers 14
4.1.2 Battery manufacturers 14
4.1.3 Charging station operators 14
4.1.4 Government 15
4.2 Relationship between each stakeholder 16
4.2.1 Carmakers and battery manufacturers 16
4.2.2 Carmakers and charging station operators: 17
4.2.3 Carmakers and Governments 17
4.2.4 Charging station operators and Governments 17
4.3 Tesla 17
4.3.1 Tesla’s strengths 18
4.3.1.1 First mover advantage and proprietary platform business model 18
4.3.1.2 Network effects 19
4.3.1.3 Technological edge 20
4.3.1.4 Innovative marketing strategies 20
4.3.1.5 Visionary CEO 20
4.3.2 Weaknesses of Tesla 20
4.3.2.1 Cut throat competition 20
4.3.2.2 Narrowing technological gap 21
4.3.2.3 Limited production capacity 22
4.4 Localisation of EVs 23
4.4.1 Development of EVs in Singapore 23
4.4.2 Development of EVs in China 23

5.0 Future Developments 26

5.1 Future developments for EV manufacturers 26
5.1.1 General EV production 26
5.1.2 Batteries 27
5.1.2.1 Battery modifications 27
5.1.3 Battery transformation 27
5.1.4 Vehicle type diversification 28
5.2 Future developments surrounding EV enablers 28
5.2.1 Policy and Legislation 28
5.2.2 Infrastructure 28
5.3 Future landscape of the automotive industry 29
5.3.1 Downward trend of car ownership 29
5.3.2 Ride-sharing 29
6.0 Conclusion 29

Bibliography 30

2
1.0 Introduction

Energy storage technology for automobiles have been evolving rapidly since the last century. Energy storage
refers to the conversion of electrical energy from power systems into a form that can be stored for converting back
to electrical energy when needed, at a later time (ScienceDirect, n.d.). In the automotive industry, energy storage
primarily refers to the fuels which allows vehicles to operate. Currently, 9% of total emissions in the world comes
from cars and buses (Ritchie, 2020), and the automotive industry is trying to limit its impact on the environment
and moving towards a more sustainable mode of transport, through the development of electric vehicles (Future
Bridge, 2020).

1.1 Technologies in the Industry

All vehicles require fuel to operate. The first form of fuel invented for vehicles was steam powered. In the last
century, the 2 most prevalent forms of fuel, currently and in the future, are petrol (gasoline & diesel) and
electricity. In this section, the technologies that utilise these fuels will be explained.

1.1.1 Internal Combustion Engine (ICE)

According to the Collins Dictionary (n.d.), an internal combustion engine is an engine that creates its energy by
burning fuel inside itself. In the automobile industry, these engines use gasoline and diesel as fuels. Currently,
ICE is the most prevalent form of automobile energy storage, accounting for 92% of all global car sales in 2019
(BCG, 2020).

1.1.1.1 Dominant Design for ICE: Ford Model T

The Ford Model T was first introduced in 1908. By 1912, Ford had refined this design for cars to become
commercially available for the masses. With the introduction of assembly lines in Ford’s factories, production
costs decreased and this revolutionized the manufacturing process for all ICE vehicles. This thus became the
standard that other ICE vehicles manufacturers went on to adopt, shifting away from manual production (TÜV
NORD GROUP, 2019).

1.1.2 Electric vehicles (EV)

For the purpose of this report, EVs refers to vehicles which derive all of their power from electricity supplied by
the electric grid. These EVs are powered by one or more electric motors and they receive electricity by plugging
into the grid and storing it in batteries. There are primarily 2 types of EVs which are Battery Electric Vehicles
(BEVs) and Fuel Cell Electric Vehicles (FCEVs) (Office of Energy Efficiency & Renewable Energy, n.d.).
Currently, EVs only account for 2.6% of global car sales (BCG, 2020). However, EV is likely to be the future of
the automobile energy storage industry with a global shift towards environmental friendliness (Future Bridge,
2020).

1.1.2.1 Dominant Design for EV

Currently, Tesla battery technology is the dominant design for EV. Tesla batteries have the highest battery range,
capable of traveling 370 miles on a single charge, while competitors are stuck near the low 200’s (Siddiqui, 2020).
Companies such as Daimler and Toyota are attempting to adopt Tesla’s battery standard (Trefis, 2014).

3
1.1.3 Hybrid

A hybrid car uses more than one means of propulsion, combining a petrol or diesel engine with an electric motor
(Evans, 2021). There are 3 types of hybrid vehicles: Parallel Hybrid Cars, Range Extender Hybrid Cars and Plug-
in Hybrids. Currently, it is the middle ground between ICE and EV as it eliminates the cons of an EV (immaturity
of its supporting ecosystem) as well as the cons of an ICE vehicle (environmentally unsustainability).

1.1.3.1 Dominant Design for Hybrid

The Toyota Prius Sedan is the dominant design for Hybrid vehicles. It is a parallel hybrid car with the breakthrough
technology of regenerative braking, where the battery packs in the cars are charged by capturing energy from
deceleration during braking (Riswick, 2019). It is the most popular HEV ever produced, and auto manufacturers
around the world have used its technology as a basis for countless other vehicles (Carsdirect, 2020).

1.1.3.2 Future of Hybrid

Hybrid cars are unlikely to have a future. As established earlier, Hybrid cars exist as an intermediary solution
between ICE and EVs. According to Davis (2020), current production and sales for hybrid vehicles will continue
to be higher than EV up till 2027, where its sales will peak. Beyond 2027, it is very likely that the ecosystem for
EV will be ready and EV sales will overtake Hybrid vehicles. This is because the biggest reason to get a Hybrid
vehicle over an EV is the lack of charging stations in the vicinity (Elliott, 2020). Thus, as government policies
and the free market work towards an ecosystem for the EV, Hybrid will gradually lose their appeal.

However, large carmakers like Ford and Toyota are still releasing hybrid versions of their popular ICE models
and continuing to invest into their hybrid component supply chains (Bloomberg, 2020). For example, Toyota is
collaborating with major battery maker Panasonic in a joint venture called Prime Planet Energy & Solutions Inc.
to produce batteries for 500,000 hybrid vehicles a year, starting in 2022 (Toyota, 2020). This sustained popularity
of hybrid vehicles is largely due to the fact that they provide refuelling savings while eliminating range anxiety.
Their battery packs are also smaller and cheaper due to their unique mechanism, which appeals greatly to
consumers with an eco-friendly mindset but unwilling or unable to fork out an exorbitant sum for an EV.
Therefore, hybrid vehicles remain the present choice as it seemingly retains some of EV’s strengths while
bypassing its weaknesses. However, as the EV industry matures and achieves breakthroughs to reduce cost, price
and improve supporting infrastructure, the fact that hybrid vehicles are but an imperfect replacement awaiting the
true advent of EVs will become more apparent by the end of this decade.

Additionally, market forces of higher oil price and strict fuel-economy regulations will shift the demand curve of
hybrid vehicles to the right, but if these supply-side factors become too strong then it could push the market
towards full adoption of EVs (Davis, 2020). While existing regulations are targeted at banning fully fossil fuel
reliant cars and hybrids are exempt from harsh penalties by fulfilling the requirements of integrating some form
of sustainability, it does not align with the ultimate policy intent for the automotive industry to fully discard non-
renewable energy sources. It is important to note that hybrid vehicles are not an end in themselves, as there is no
room for progression after hybrid vehicles achieve a certain level of market saturation besides going full electric.
Although many carmakers like Toyota still view hybrid vehicles as the most practical stepping stone to tide out
this transitioning stage, and that the industry should take a parallel approach towards this shift towards
sustainability. Since the traditional carmakers are just beginning to realise the threat from smaller carmakers
making decisive decisions to stop selling ICE entirely within a few years, they will need to slowly adapt to this
change by relying on hybrid technology to tap on consumer tentativeness towards adopting EVs.

4
2.0 S curve

Figure 1 - S Curve

2.1 Performance Perimeter

As seen in our S curve, fuel efficiency is the performance perimeter. However, we propose that fuel efficiency
should be a multivariate performance perimeter with 2 components, energy efficiency and user efficiency. If we
rely on fuel efficiency per se, complications will arise with regards to differences in fuel that ICE and EVs use.
Although we can still compare Hybrid and ICE using the common parameter of fuel efficiency (in terms of litres
per km), EVs use no fossil fuels and instead rely on electricity (measured eby miles per gallon equivalent or
kilowatt hours/100 miles). With the former focused on cost (with less efficient cars requiring more fuel to travel
the same distance higher cost), the latter translates more directly to energy efficiency (range) especially because
electricity costs cannot be accurately and uniformly gauged (means of producing electricity varies).

2.1.1 Energy Efficiency

Energy efficiency is the degree to which less energy is used to perform the same task (EESI, n.d.). Energy
efficiency directly relates to greenhouse gas emissions (IEA, 2019). Thus, by measuring the carbon emissions
from each technology, EV is the most energy efficient, followed by Hybrid and lastly ICE (AFDC, n.d.).

Figure 2: Comparison of Emissions (AFDC, n.d.)

5
This will result in the EV S curve floating above the Hybrid S curve and the Hybrid S curve floating above the
ICE S curve. To prevent this, we added in another variable to the performance perimeter, which is the user
efficiency.

2.1.2 User Efficiency

User efficiency is the degree of consideration for human factors and ease of use for the user of the application
measured (Function Point Modeler, n.d.). In this context, it will be the ease of use for customers in terms of
refuelling. This will be affected by various factors such as the cost of fuel (petrol & electricity) as well as the
ecosystem.

User efficiency is sufficiently tied to the technology because in this industry, fuel serves as an input for them to
work. Thus, factors that affect fuel will also affect the user efficiency. This is especially true due to scarcity.
Currently, the ICE S curve is reaching maturity as fossil fuels are a scarce resource and the price of these fuels
will only increase, causing the user efficiency to plateau. This variable of the performance perimeter will allow
the S curves to intersect and better understand the pace of technology substitution (Adner & Kapoor, 2016). In the
S curve above, there are 3 points of intersections which are Creative Destruction, Robust Coexistence and Illusion
of Resilience.

2.2 Events
The events listed in the table are in reference to the points labeled in the S curve.
S/N Year Event Significance/Effect on
Technology

1 1860 Invention of storage batteries (Cromer et al., 2020)

2 1912 Heyday for EV: Increase in community charging stations and Ecosystem for EV ready
companies in the trade. (Cromer et al., 2020)

3 1920 Decline of EV: The discovery of Texas crude oil decreases the Plateau of the EV S curve.
price of gasoline, making cars more affordable (Barber, 2017).
Many gas stations also popped up across the US, increasing Ecosystem for ICE ready.
accessibility for consumers. (US Department of Energy, n.d.)

4 1886 Carl Benz patented the first ICE, the “vehicle powered by a gas
engine.” (Daimler, n.d.)

5 1912 Ford introduced the Model T: Ford Model T became the

Revolutionarised production process for ICE vehicles and made dominant design for ICE
gas-powered cars widely available and affordable (TÜV NORD vehicles.
GROUP, 2019).

6 1973 Arab oil embargo: Gasoline prices increase exponentially ICE S curve reaches maturity
(Amadeo, 2020). Newfound interest in EV (US Department of
Energy, n.d.).

7 1997 First mass produced hybrid car: Toyota Prius Sedan (US Toyota Prius Sedan became the
Department of Energy, n.d.). dominant design for Hybrid

8 2006 Tesla expressed interest in EV (US Department of Energy, n.d.).

9 2013 US developing a nation-wide charging infrastructure for EV (US Ecosystem adapting to be ready
Department of Energy, n.d.). in the near future

10 2038 Projected global EV sales overtakes ICE sales (Huang, 2019) Projected point of intersection:
Illusion of Resilience

6
2.3 Interactions between S curves

2.3.1 Creative Destruction (1920-1935)

One interesting thing to note is that EV existed and was popular before ICE. However, the interaction between
EV and ICE between 1920 -1935 shows creative destruction, where the pace of substitution was very fast. By
1935, ICE had effectively replaced EV.

This is due to a number of events. The biggest one is Ford’s success with the model T. The model T made car
ownership significantly cheaper. That coupled with the decrease in the price of petrol due to the discovery of
Texas Crude oil, effectively led to the quick substitution of EV with ICE vehicles.

2.3.2 Robust Coexistence (projected, unlikely scenario)

The interaction between ICE and Hybrid shows robust coexistence, where the pace of substitution is gradual. The
projected point where Hybrid vehicles will substitute ICE vehicles is somewhere in the distant future.

This is because while Hybrid technology is constantly Improving, ICE cars are also improving in terms of both
performance and environmental friendliness. Ultimately, Hybrid cars definitely trump ICE in terms of
environmental friendliness, but they also have some weaknesses which include higher maintenance costs, reduced
range and lower speed (Allstar, n.d.). Thus, Hybrid vehicles will gradually replace ICE vehicles albeit as an
imperfect intermediary solution to the gaps in EV adoption currently. Fundamentally, Hybrid vehicles do not
fundamentally solve the issue of fossil fuel dependence at its root.

However, this will most likely not happen due to the fact that EVs will outperform Hybrid cars within a few years.
Although Tesla’s EVs are already exceed any Hybrid competitors, the entire EV industry as a whole still face
structural difficulties and need more time to allow the ecosystem and technologies to fully mature. Hybrid also
brings with it the cons of EVs, which is the lack of charging stations, but does not retain the same levels of benefits
in terms of the degree of sustainability and lowest cost of ownership in the long term. Thus, it is extremely likely
that EV will replace ICE before Hybrid can do so, which is elaborated in the next subsection on the illusion of
resilience.

2.3.3 Illusion of Resilience (projected 2038)

The more likely scenario is the intersection between ICE and EV, which shows the illusion of resilience. The
illusion of resilience is characterized by stasis followed by rapid substitution. In this case, EV is superior in terms
of green technology. However, the current ecosystem for EVs is not ready, due to insufficient charging stations
and barriers to reducing battery cost /kilowatt to below the rate of ICEs. However, once the ecosystem is ready,
EV will rapidly replace ICE. This is projected to happen by 2038, where global EV sales is expected to overtake
Global ICE vehicle sales (Huang, 2019).

2.3.4 Floating S curves

The interaction between EV and Hybrid shows no intersection. Hybrids will never replace EVs because it was not
designed as an end in itself but rather to serve an urgent need. Hybrid cars currently has a market as it bypasses
the lack of ecosystem for EV. Once the ecosystem for EVs is ready, Hybrid will lose their purpose. This is
especially true considering the green technology of EV is also superior to Hybrid vehicles, in terms of carbon
emissions.

3.0 Current landscape of vehicles

7
3.1 Technology behind vehicles

Vehicles are known as machines that are used to transport humans and logistics, and its history dates back to 1769
when a French military engineer built the first steam powered tricycle with the sole purpose of hauling artillery
(History.com Staff, 2012). Nearly three centuries later, most of the existing vehicles produced serve as passenger
cars, followed by commercial vehicles (Wagner, I., 2020). There is also a shift in the preference in car batteries
due to factors such as CO2 emissions, price and government regulations. In this report, the focus will therefore be
placed on the changing preferences of consumers when batteries in automobiles are concerned.

3.2 Types of vehicles

We classified the vehicles into 3 different categories, which are:

1. External Combustion Engines (ECE);
2. Internal Combustion Engines (ICE);
3. Electric Vehicles (EV).

External Combustion Engines are also known as External Heat Engines, whereby the engine receives heat from
another source other than the fuel used. On the other hand, Internal Combustion Engines receive its heat directly
from the combustion from fuel (J.M.K.C. Donev et al., 2018). Internal Combustion Engines can also be further
differentiated into Continuous Combustion Engines and Intermittent Combustion Engines. Continuous
Combustion Engines can be identified through the steady flow of fuel and oxidiser into its engines, while
Intermittent Combustion Engines are known for the periodic ignition of fuel and air (Proctor, n.d.).
However, Electric Vehicles differ from the aforementioned types, as it is powered through the use of electric
motors instead of combustion engines. (What is Electric Vehicle, n.d.)

3.2.1 External Combustion Engine

3.2.1.1. Steam vehicle

Steam engines are the most common type of External Combustion Engines. Fuels such as coal are burnt in the
combustion chamber, which in turn boils the water in the boiler to produce steam. Steam is then channelled to the
turbines through pipes, which then expands and causes the shafts to turn, therefore driving the machine to work
(External Combustion Engine: Types & Uses, 2017). Even though the technology was deemed to be safe and
reliable, steam vehicles soon turned obsolete when gasoline powered cars were introduced into the automobile
industry (Steam cars, n.d.).

3.2.2. Internal Combustion Engine

3.2.2.2 Coal gas

The popularity for coal gas vehicles rose during wartimes in certain regions in Europe, when there was a shortage
of oil. The uncompressed gas consisted of a mixture of hydrogen, carbon monoxide, methane and ethylene, which
was then stored in a gas bag that was mounted on top of the vehicle (Coal-gas powered vehicles, 2020). However,
impracticality of the gas bag soon caught up as its size was limited to the size of the vehicle, and it had a low fuel
economy. Safety also became a concern as the vehicles were prone to explosion, as well as fires and engine
damage (De Decker, K., 2011).

3.2.2.1 Gasoline

The first gasoline-fuelled car was built in 1876, but it was only until the 1890s when gasoline vehicles were
popular and modernised (Melosi, n.d.). The gasoline engine consists of a fixed cylinder and a piston. Within the
engine, the fuel is ignited before it undergoes combustion, and the energy gained from combustion is partially
converted into energy for the vehicle to do work. Gases produced from the combustion will also expand and push
the piston, which in turn rotates the crankshaft and passes through a system of gears before driving the vehicle’s

8
wheels (Internal combustion engine basics, 2013). Gasoline cars still remain highly popular until this day, but
increasing concerns have been raised regarding the depletion of fossil fuels and environmental pollution.

3.2.2.3 Diesel

Nearly 50 years after the first patent for diesel vehicle was released, the first series- production diesel passenger
car was invented by Mercedes-Benz (February 1936: The diesel engine celebrates its premiere in the passenger
car., n.d.). The engines used in diesel vehicles are almost identical in nature to the gasoline engine, however it
uses diesel as fuel instead. There are many benefits to diesel fuelled vehicles. Diesel stores more energy compared
to gasoline, hence making it more economical. Its engine is also more efficient and durable, leading to lesser
maintenance required (Research, 2020). Yet, the reputation of diesel started to decline over the years due to
regulations put in place to address environmental concerns, as well as after the Volkswagen Cheating Scandal
where diesel vehicles were rigged in order to pass emissions tests (Hotten, 2015). Its unpopularity also increased
due to the unpleasant smell of diesel as well as “diesel knock” - which is a knocking sound widely associated with
vehicles using diesel engines (Lowe et al., 2011). Currently, diesel engines are still not rendered obsolete as they
are more commonly found in large industrial vehicles and other heavy vehicles.

3.2.3 Hybrid Vehicles

In the early 20th century, the first hybrid vehicle was built. Similar to gasoline vehicles, hybrid vehicles also run
fully on gasoline, yet they also rely on an electric motor for propulsion. Though hybrids were well received in the
early stages, they were soon overshadowed by gasoline counterparts which were less costly and had greater power
(A brief history of hybrid cars, 2020). After the Arab Oil Embargo in 1973 which resulted in a severe shortage of
oil, the interest in Hybrid Vehicles started to grow once again. Today, many industry giants such as Toyota and
Honda are known for pioneering Hybrid Vehicles, with Toyota overseeing more than 12 million hybrid drivers
around the world (Are hybrid Cars Popular?: Ask Hybrid FAQs Toyota Motor Europe, 2019).

3.2.4 Electric vehicles

Electric motors were first invented in 1827, but it only started to gain traction in 1880. Its popularity was attributed
to its ease of use and lack of odour unlike other vehicles and even outperformed traditional Internal Combustion
Engines. But this was short lived as the lack of electricity made it difficult and costly to maintain the EV industry
(Gold, 2020). It was only in the last decade when EVs made a comeback, with Tesla Motors taking the lead to
release the fully electric Roadster in 2008 (Schreiber, n.d.).

Technology, government incentivisation and a shift in consumer behaviour are some of the factors which
contributed to the growth of the EV market. By 2022, technological advancements will put the cost of owning an
EV on par with traditional petrol or diesel vehicles (Woodward et al., n.d.). This will eliminate one of the greatest
barriers to purchase, boosting demand and increasing market growth. Electric vehicles can be categorized into All
Electric Vehicles (AEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).

3.2.4.1 AEVs

AEVs consist of Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs). As its name suggests,
AEVs are powered by electricity only and have zero carbon emissions. Therefore, they are considered to be the
industry’s dominant design.

In Battery Electric Vehicles (BEVs), electricity is stored in a battery pack which is then used to power the motor.
The battery can then be recharged using charging ports that are specific to the vehicle, or even a wall socket at
home. Most BEVs have a driving range of 110-160km, which is more than sufficient for day to day commute
(How do battery electric cars work?, 2015). On the other hand, Fuel Cell Electric Vehicles generate power through

9
the conversion of hydrogen gas into electricity instead of using a battery pack. However, it has a much higher
driving range of over 482 km and can be refuelled in less than 4 minutes (Fuel cell electric vehicles, n.d.).

3.2.3.2 PHEVs

Similar to AEVs, PHEVs also function using electricity. However, the distinguishing characteristic is that the
PHEV is able to utilise the Internal Combustion Engine after the battery has been depleted. This allows flexibility
and enables the vehicle to travel a further distance. Moreover, PHEVs can also utilize hydrogen gas and biofuels
instead of gasoline, therefore increasing the range of travel while eliminating the concern of pollutant emissions
(Office of ENERGY EFFICIENCY & RENEWABLE ENERGY, n.d.).

3.3 Technology behind Electric Vehicles (Present)

Figure 3: All-Electric Vehicle (How do All-Electric Vehicles work, n.d.)

Batteries

In automobiles, batteries are known as large power storage which supplies fuel to the vehicle’s motor in order for
the engine to start (CAA Auto Advice, 2019). Coincidentally, the main technology which distinguishes Electric
Vehicles from its other automobile counterparts would be its battery. Unlike lead acid batteries which are
commonly found gasoline fuelled vehicles, EVs are equipped with Lithium-Ion batteries which are known for its
high energy per unit mass, high performance and energy efficiency (Batteries for hybrid and plug-in electric
vehicles, n.d.). It also has three times the energy density of other battery technologies (Catenacci, Verdolini,
Bosetti & Fiorese, 2013), which makes it the best solution to compete with rivals as gasoline vehicles.

Each lithium-ion battery is made up of an anode and cathode which stores the lithium. The electrolyte carries
positively charged lithium ions between the anode and the cathode through a separator. This movement creates
free electrons in the anode, hence creating a charge. The electrical current then flows from the anode through the
electric vehicle to the cathode, hence allowing the vehicle to move (Office of ENERGY EFFICIENCY &
RENEWABLE ENERGY, n.d.).

3.4 Innovation type of EVs

3.4.1 Disruptive Innovation

Disruptive innovation refers to a new low-cost product that serves the low- end market but with potential
technological performance to meet mainstream demand (Technology Strategy & Innovations, n.d). As mentioned
by Christensen, EVs are identified to be a disruptive innovation which could possibly disrupt the automobile

10
industry (Christensen, 1997). This holds true as the performance of EVs today have increased and are successful
which is attributed to the help of the lithium-ion battery. There are also many mainstream EVs in the market which
are manufactured by brands such as Nissan and Toyota.

3.4.2 Electric Vehicles as Radical Innovation

However, the theory of Disruptive Innovation is unable to fully explain the form of innovation which is taken up
by EVs. A stark difference would be the market served – disruptive innovations serve the lower end of the market
while radical innovations serve the higher end of the market. Tesla accounts for most of the sales of EVs (Wagner,
2020), and they chose to enter the higher end of the market while bringing in luxury features and advanced
technology. Nearly two decades after Christensen made the claim that EVs are a form of disruptive innovations,
the Clayton Christensen Institute has since brought up a new claim that the global EV market is not disruptive
(Iyer, 2018).

Figure 4: Radical innovation

At present, ICE is the mainstream technology of vehicles, holding a huge portion of the market. However, EVs
are a radical innovation, serving as a high-end disruption to the main ICE market. With higher performance in
terms of fuel efficiency, EV has a penetration point at the high end of the market, charging higher prices than
conventional ICE vehicles. This can be seen in real life where EV are currently seen more as a luxury good than
a commodity.

However, EV companies like trying to innovate their products and processes in order to reduce the prices of EV
and eventually capture the main market. One example which we will explore further is Tesla innovating their
battery technology. By investing largely into battery innovation, Tesla aims to make EV more affordable (Clayton,
2020). This is not unique to Tesla. Almost all auto manufacturers are looking to make EV cheaper and eventually
match the price of ICE vehicles (Jolly, 2020). Thus, with EV technological trajectory, it is very likely that EV will
be able to capture the main market for vehicles and maybe even force ICE out of the market in the near future.

3.5 Strengths of Electric Vehicles

3.5.1. Sustainability

One of the prominent strengths of EVs would be its sustainability, as EVs emit zero carbon emissions while on
the road. Additionally, EVs can utilize electricity derived from multiple greener sources like hydroelectric, solar
and wind. This could be instrumental towards breaking off the automotive industry’s reliance on fossil fuels,
thereby cutting down carbon emissions and contributing to the fight against global warming.

11
3.5.1.1 Predominant market trend -- going green

International organizations like the United Nations have coordinated collective action by governments worldwide
to incentivize or regulate the adoption of EVs. With transportation contributing to 29% of the world’s greenhouse
gas emissions, and cars contributing to roughly 60% of that amount, the only way that governments can meet
these targets would be to cut down on emissions from automobiles. Hence, many countries have started to promote
EV, which has also delivered promising results. A research conducted by Canalys has shown that in 2020 alone,
EV sales increased by 39% to 3.1 million units globally (Global electric vehicle MARKET 2020 and forecasts,
2021). In the EU where EV sales are the most prominent, the number of EV purchases increased by more than
65% in 2017, and still continues to grow (Gersdorf et al., 2020).

3.5.2. Cost of ownership

In a study conducted by the University of Michigan, results have shown that EVs cost less than half as much to
operate when compared to their gasoline counterparts. Taking the United States as an example, an EV costs $485
to operate annually as compared to $1117 for a gasoline vehicle (Costs and benefits of electric cars vs.
conventional vehicles, 2020). Indeed, this comes as no surprise as EVs are known to have much lower costs of
ownership and maintenance. In many countries, there are rebates given to owners after they purchase the EVs as
an encouragement and reward for switching to a more environmentally friendly vehicle, hence directly lowering
the cost. Moving on to the cost of maintenance, EVs are also known to be more durable, hence lesser maintenance
is needed to be done (CarsDirect Staff, 2019). For a long time, Tesla’s vehicles were granted free access to the
supercharger networks as a perk of being a Tesla owner. Although this is no longer the case, the cost of recharging
is still significantly lower than pumping petrol.

Furthermore, as EVs are powered with electricity, there are many other alternatives to which EVs can be powered
- such as solar, wind or even nuclear energy. With such a wide supply of electricity, it will be cheaper to recharge
a vehicle with electricity as compared to gasoline which is depleting in large amounts. Furthermore, It has been
calculated that throughout the 15-year life span of a vehicle, the electricity required to power an EV can be as
much as $14,480 cheaper than refuelling a gasoline vehicle (Palmer, 2020) which substantiates the point that EVs
have a lower cost of maintenance.

3.5.2.1 Fuel efficiency

Another aspect which greatly contributes to the low cost of ownership would be the higher levels of fuel efficiency.
As mentioned in sections 2.1.1 and 2.1.2, Fuel efficiency considers both Energy Efficiency and User Efficiency.
Energy efficiency is the degree to which less energy is used to perform the same task (EESI, n.d.) and directly
relates to greenhouse gas emissions while user efficiency is the degree of consideration for human factors and
ease of use for the user of the application measured (Function Point Modeler, n.d.). With higher fuel efficiency,
this means that lesser energy would be needed for the vehicle to travel, hence they are able to reach a further
distance without recharging. In addition, it is easier for EV owners to recharge their vehicles due to the abundance
of electricity. Therefore, this would further reduce the cost of ownership of the vehicles especially given the
unreasonably expected upward trend of petrol prices.

3.5.3 Superior performance

Besides having the pros of sustainability and lower cost of driving the car, EVs have also been proven to surpass
ICEs in terms of performance. For instance, EVs are able to achieve maximum torque immediately, but gasoline
vehicles would need some time before achieving its peak performance (Sierzchula et al., 2012). Tesla’s Model S
has often been described as “smoothly effortless as a Rolls-Royce, can carry almost as much stuff as a Chevy
Equinox (SUV), and is more efficient than a Toyota Prius” (Mackenzie, 2012). The elimination of traditional
engines, transmission and drivetrain creates additional room for innovative car design possibilities.

12
3.6 Weaknesses of Electric Vehicles

Beyond the main inherent weaknesses of costly batteries and perceived range anxiety, there are many external
problems relating to EV adoption. Technical, administrative, institutional and regulatory obstacles all pose
difficulties towards overcoming the long-term barriers of path dependence and ICE lock-in with the established
interlinked network of dealerships, gas stations and mechanics (Cowen & Hulten, 1996).

3.6.1 Price

Though EVs have a lower cost of ownership, they generally have a higher price as compared to other vehicles
which serves as a barrier that deters individuals from purchasing them (Browne et al., 2012). The average selling
price of an electric car is $19,000 more than the average gasoline vehicle (Palmer, 2020). EVs are also generally
more expensive than hybrid vehicles by a smaller margin.

3.6.2 Range Anxiety

Due to its battery, EVs do not travel as far as their counterparts. An average gasoline car can reach up to 482 km
when running on a full tank, while most electric models have a lower range between 200 to 490km on a single
charge. Potential buyers worry that their EV may run out of battery before they reach their destination or even the
charging stations, as compared to the established network of petrol kiosks that can provide for the refuelling needs
of ICE vehicles. While there have been constant breakthroughs to improve range and charging speeds, EVs will
likely only truly replace ICE when charging stations become as abundant as gas stations. Yet the enormous
investments, time and effort from both the public and private sectors that are needed for R&D and changing
existing infrastructure for ICE “tend to promote inertia and (entrench) the status quo” (Pilkington & Dyer, 2004).

3.6.3 Insufficient charging infrastructure

Each EV has different charging ports and different charging stations are needed, which leads to insufficient
charging infrastructure. As of now, there are 5 different kinds of ports in use: This brings inconvenience to drivers
if the battery is depleted. Also, this inconvenience is amplified as it would be nearly impossible to replace the
battery on the spot.

Despite the lower cost of recharging EVs compared to pumping petrol, this would cease to matter if drivers are
limited by range and have to plan their routes according to the charging network instead of catering to their needs.
While creative solutions such as mobile recharging trucks have been put forth by start-ups like NIO, the
fundamental problem of convenience and user efficiency is central towards motivating existing ICE car-owners
to break free of the lock-in from the cheaper ICE models and second-hand car resales to consider EVs. Taking
Singapore for example, with many HDB blocks and condominium units still having insufficient or no EV charging
stations at all, potential EV buyers have no real reason for spending more to buy a car that they cannot even charge
conveniently at home. Such regional sensitivities are extremely relevant for EV makers -- with over 90% of
Singaporeans living in HDB and condominiums (Yap 2016), the traditional approach of installing individual
charging ports in the garage of your own house (like in the States) is not applicable for Singapore. Governmental
support for charging station operators and carmakers become especially relevant in helping the EV industry adapt
to and overcome such adoption barriers.

4.0 EV industry stakeholders

4.1 Major industry players

In this section, we will be exploring the top major industry players in the EV industry which includes carmakers,
battery manufacturers, charging station manufacturers and Governments.

13
4.1.1 Carmakers

Within the car producers, the top 5 leading producers globally are Tesla, Toyota, Volkswagen, General Motors
and Daimler (Business Upturn, 2021). We have narrowed down Tesla as the main producer of EVs, and Toyota
as the leader in both the ICE and hybrid markets.

Founded in 2003, Tesla is a relatively newer company as compared to its competitors. However, it has a well-
established market presence – as of January this year, Tesla’s market capitalization is bigger than the next 10
automakers combined, which indicates that its market shares are being overvalued. Also, Tesla is currently the
leader in the EV industry as it not just produces top selling EVs, but also manufactures lithium-ion batteries for
other industry players such as Mercedes. With Tesla having a strong foothold in the automotive industry as well
as collaborations with its competitors, we are inclined to believe that the market growth for Tesla will be strong
in future, hence making it a potential giant in the automotive industry.

While Tesla remains as the leading producer of EVs globally, competition remains high as more established
carmakers are expected to join in this year. This includes major competitors such as Toyota which is based in
Japan. Fortune Magazine has ranked Toyota as the top motor vehicle company for the sixth consecutive year in
2020 (Toyota, 2020). This comes as no surprise as Toyota’s revenue alone is ten times more than Tesla’s, and
they have manufactured twenty-five times as many cars, making it one of the most profitable car makers in the
industry (Trefis, 2020).

However, when we look at specific regions such as China, EV companies such as NIO are taking the lead to
replace Tesla as the next top producer. Having come from a humble background as a start-up, NIO has faced a
series of challenges including nearing bankruptcy, but this was reversed when the Chinese government decided
to invest in them as a push to become a leader in the EV industry. From then, NIO has seen a rise in the investment
in its stocks as well as its enterprise value which is priced at $85 billion at present (ALT Perspective, 2021). With
NIO often mentioned alongside Tesla, its unique selling points have positioned NIO as Tesla’s biggest threat
especially in China’s booming EV market.

4.1.2 Battery manufacturers

Battery manufacturers play an important part in manufacturing batteries for various EV brands. Reuters has ranked
Contemporary Amperex technology (CATL) as the top battery manufacturer, followed by Panasonic, BYD, LG
and finally Samsung SDI (Yang & Jin, 2019). CATL which is based in China, is the world’s biggest manufacturer
of batteries. It has collaborated with many automaker producers which includes, but are not limited to – BMW,
Volkswagen and Daimler. CATL has expanded its factories to Germany, and also plans to set up another in the
United States (Yang & Jin, 2019).

Panasonic has been a supplier of batteries to Tesla, Honda and Ford, and are in the midst of investing in technology
to ramp up their production. They are also in discussions with Toyota to start a new joint venture (Yang & Jin,
2019).

4.1.3 Charging station operators

Automobile producers are now more invested in charging stations to further support their vehicle, and the charging
station market is expected to hit $29.7 billion by 2027 (Meticulous Research, 2021). The top companies which
are operating in this market would be Schneider Electric, Siemens, ABB, Tesla and Eaton Corporation. Schneider
Electric has a strong geographical presence as it has companies and subsidiaries distributed throughout Western
Europe, Northern America as well as Asia Pacific. SE also has proven to be well versed in the electrical field,
having operated in different segments ranging from industrial automation, to smaller scaled ones such as grid
automation (Meticulous Research, 2021) On the other hand, Siemens focuses on electrification, digitalisation as
well as automation, while specialising in Industries such as transportation and healthcare. Similar to SE, Siemens

14
has subsidiaries in Europe, Northern America and Asia Pacific, as well as in the Middle East and Africa
(Meticulous research, 2021).

There are three main ways for EV owners to recharge their vehicle. For charging on the go, there is an increasing
global network of charging stations, either for specific brands of vehicles by car manufacturers or for general
automobiles by independent charging providers. When not in use, consumers currently favour installing charging
devices at their residences.

One of the main concerns of consumers of switching to EVs was the lack of refuelling stations for electric vehicles
and automobile manufacturers, realising that no one else was going to build stations at the scale needed to
stimulate sales, have plans/started to build their own network of charging stations. Most prominent among them
being Tesla with more than 20 thousand supercharges globally (Tesla, n.d.). Other automobile manufacturers are
also experimenting with integrating charging stations with existing facilities such as showrooms. Hyundai for
example has recently converted a gas station into a six-storey complex housing not only a charging station but
also includes a driver center where drivers can book a Hyundai test drive, a large café space for visitors to enjoy,
and an experiential brand shop (Hyundai, n.d.).

As the sales of EV continues to rise year after year, many oil companies are incentivized to ener the market and
reap their share of the cake. At the forefront are power companies like Shell which view building charging stations
as a natural extension of their fuel provision portfolio. Locally, we have BlueSG, an EV car sharing company with
345 stations and 1371 charging points in 2020. While primarily for their Bluecars, charging spots are open to the
other vehicles as long as they have subscribed to BlueSG’s membership service. However, as the charging ports
on different EVs may differ greatly, users are required to have the suitable adapter with them. This issue is further
exacerbated by the lack of standardised charging cables the EV industry faces right now, which partially explains
the lack of popularity of Tesla in Singapore with limited supercharging stations and incompatibility with the
dominant charging providers like SP Group and BlueSG.

The ideal time for a full charge is when the user is at home during the night. Consumers have the option of
installing a specialised charger at home like the Wall Connector that Tesla offers or the Wallbox by Hyundai. On
the other hand, users who do not have the luxury of such space are able to connect their EV to a 3-pin plug socket
as a backup. There is an increasing number of companies which offer home installation services for generic
dedicated home charging points such as Schneider Electric and ABB. Home installation is not without its
limitations, as this concept traditionally applies to Western landed housing with garages. In land constrained
countries like Hong Kong and Singapore, the EV industry has yet to fully provide for such limitations. If personal
charging cannot be provided for readily, Tesla might lose out to EV sharing companies as ownership becomes
pointless.

4.1.4 Governments

With increasing awareness on global warming and carbon emissions, as car manufacturers transition towards EVs,
governments around the world have also started to impose regulations and have joined pledges such as the Paris
Agreement and Kyoto Protocol to advance this cause. This includes promoting sustainability amongst carmakers
and car buyers.

First off, regulatory barriers either outrightly ban or impose high taxes on automobile companies who continue to
produce and sell pure ICE vehicles after a set deadline. Carmakers are given incentives and buyers given rebates
when they produce and buy EVs respectively. For example, Norway has taken the lead in mandating all newly
bought vehicles to be electric by 2025, and Singapore has pledged to do the same by 2040 (Kuttan, 2021).
Additionally, most governments are also committed to liaising with carmakers to transit to this change through
bailouts, improving on infrastructures as well as increasing investments. The United States government granted
Tesla a loan of 465billion USD for them to develop full EVs (Tesla, n.d), which was crucial in helping Tesla tide
through the difficult period if intensive R&D and low sales. Moving to Asia, the Chinese government successfully

15
bailed out a nearly bankrupt EV start-up (NIO) with 1 billion USD alongside generous joint ventures with its
state-owned carmaker, helping to rise up the ranks to become Tesla’s biggest competitor in China. Back in
Singapore, the government has announced plans to build 60 000 charging ports for EVs by 2030 in order to support
companies such as BlueSG and the eventual conversion of all forms of public transport to be fully electric
(Singapore Green Plan 2030, n.d.).

When it comes to buyers, rebates are provided as a reward and they commonly take up the form of subsidies or
exemptions from carbon/road tax, which directly reduces the cost of ownership. In Singapore, the Singapore Green
Plan 2030 has highlighted plans to revise and reduce the road tax for EVs, therefore making EVs more affordable
as compared to other vehicles (Singapore Green Plan 2030, n.d.). Moving on to the European Union, similar
policies have been implemented in detail to aid the transition to from ICE vehicles to EVs. In Belgium, EV owners
find themselves either paying a subsidized tax, or being fully exempted from having to pay vehicle registration
tax (Country Detail Incentives, n.d.). Similarly in Germany, owners get to enjoy tax reductions including
exemptions from the annual circulation tax for the next ten years (Country Detail Incentives, n.d.).

In some countries, the government offers purchase grants instead of rebates which differs amongst different
countries. With a purchase grant, the price needed to purchase an EV is reduced. Unlike rebates, grants are
processed immediately during the transaction which further motivates citizens to purchase the EVs. For example,
swapping from a gasoline or diesel car to an EV in France entitles the owner up to €12 000 in grants (How to get
an EV subsidy in France, 2020).

Other forms of support that the government could provide would be to prioritise EVs in public procurement
contracts or giving EVs access to free parking or bus lanes. Although rare, there are governments who are in
favour of such a policy. For example, the Estonian government has allowed municipalities to permit EVs to use
bus lanes (ERR News, 2019). When drivers are presented with an opportunity to be given priority this will lead
to a switch from gasoline vehicles to EVs.

With these examples, it is clear that the governments are fully supportive of the EV industry and have even taken
necessary action to ramp up both the demand and supply for EVs. Therefore, in order for EVs to be a success, the
government plays a crucial role in ensuring that the companies and its citizens are able to adapt and thrive within
its national borders. This is especially true in the initial stages, and continues to be relevant in fostering the swifter
adoption of EVs amidst persisting market pessimism that EV technology is still immature.

4.2 Relationship between each stakeholder

The intricate relationship between them requires closer examination to unveil the underlying connections of
dependence and coexistence.

4.2.1 Carmakers and battery manufacturers

With the battery being the most important component of an EV, the speed at which carmakers can produce cars
is dependent on the production capacity of these battery manufacturers.

While some companies develop their battery technologies in-house, or are exploring self-production options, the
current reality is that these two stakeholders are largely independent and merely coexisting.

The price of batteries and its efficiency, which directly affects the cost of driving EVs, remain existential obstacles
against the popularization of EVs. Reducing battery cost to bring the cost of EVs down to or below that of ICE
and hybrid vehicles is a pressing concern for both these stakeholders.

16
4.2.2 Carmakers and charging station operators:
The key supporting infrastructure for EVs would be charging ports or stations. Making charging infrastructure
more accessible to keep up with market demand is critical towards promoting public adoption of EVs. Charging
station operators are largely independent from carmakers, with some exceptions such as Tesla, which maintains
its own supercharger networks.

The standardization of charging plugs is still lacklustre, as Tesla’s supercharger network faces compatibility issues
with other EV models. Despite this, Tesla still remains a dominant provider of charging stations, and has also
collaborated with other charging station operators to provide Tesla adaptors (Templeton, 2019) at their stations.

While integrating the supporting infrastructure into the business model can bolster brand power, the high cost of
building their own networks of charging stations has forced many carmakers to rely on independent charging
station operators. Emulating Tesla’s proprietary coast-to-coast charging network based on its strategic cumulation
of car owners to develop the charging network before focusing on improving the features of the car might be too
costly for most companies in terms of cost and time.

4.2.3 Carmakers and Governments

Most established carmakers have received varying degrees of direct and indirect governmental support throughout
their phases of growth. Many rising and legacy carmakers are state-owned to some extent, and there has been
increasing support to foster the domestic production of EVs to support local consumption and integration into the
public transport system (taxis, buses etc.).

With the major EV carmakers dependent on governmental investments, or even bailouts in times of financial
difficulties, the willingness of legacy carmakers in restructuring to produce EVs instead of the conventional ICE
and survival of automotive start-ups hoping to disrupt the industry as Tesla once did will be largely reliant on
government assistance.

4.2.4 Charging station operators and Governments

Public-private partnerships (PPP) offer a solution towards alleviating the financial constraints of the private EV
sector to accelerate the development of accessible charging networks. Governmental funding and professional
support could enable the EV sector to better manage the execution of strategic planning, swift construction and
supervisory risk management (Wang & Ke, 2018).

Supportive public policy, legislation and budgeting for EV charging infrastructure have been instrumental in
realizing the rise of independent charging station providers in many countries. Kickstarting the transition from
ICE to EVs will be highly dependent on the degree of public sector support for the other stakeholders.

4.3 Tesla

Tesla was founded in 2003 and is now synonymous with EVs. The industry leader has a current market
capitalization of USD 830 billion, making it the fifth most valuable company on Wall Street (Rivero, 2021). Its
dominance in the entire automotive industry is visible from its market cap exceeding the combined total of the
next 10 largest carmakers (Eagle, 2021). Despite this high valuation, Tesla’s actual revenue and quantity of cars
are still far overshadowed by legacy carmakers.

While Tesla’s managed to sell nearly half a million cars in 2020, growing exponentially at roughly 36% from
2019 (Boudette, 2021), this figure is still dwarfed by Toyota’s whopping 9.5 million cars sold globally as the
world’s largest carmaker (Toyota, 2021). In the United States, General Motor’s USD 4 billion 2020 third quarter
profit alone was more than 5 times that of Tesla’s in the entire year (Boudette, 2021).

17
 Figures 5.1 & 5.2: Tesla vs Toyota revenue and sales comparison

As we can observe, despite being the world’s most valued carmakers, its current production output and revenue
cannot match up with the established companies out there. Noting that the EV industry is still at its infancy stages,
accounting for less than 2% of all cars on the road, we are left wondering if Tesla’s prophesied success is
overhyped or justified. Can Tesla truly be worth trillions by 2030? To better understand this, we need to explore
Tesla’s strengths that has catapulted it to its current untouchable status as the undisputed leader in EVs, as well as
consider its inherent weakness and possible threats that could either pose as opportunities for further growth if
resolved or spell disaster if unaddressed.

4.3.1 Tesla’s strengths

4.3.1.1 First mover advantage and proprietary platform business model

Tesla has benefited greatly from its first mover advantage, being the first to popularise the EV and operating as a
monopoly in this sunrise industry until recently. For the past 18 years, Tesla has constantly reinvested its revenue
into making EVs more affordable (Mackenzie, 2020), as well developing cutting-edge technologies in terms of
battery storage, charging efficiency, self-driving capabilities and its in-car infotainment system. As much of the
automotive industry’s focus was still on product differentiation for conventional ICE vehicles, Tesla had little to
no competition.

As the EV market transitions to a narrow oligopoly, Tesla can now reap the benefits of its strategically mapped
out development plans. Starting off with the concept of the vehicle as a two-sided platform good -- consisting of
an installed base of car buyers and extensive network of geographically dispersed multi-stall rapid-charging
stations, Tesla had gradually built up its network of chargers prior to ramping up production (Bhargava et al.,
2021). The Roadster was marketed as a luxury, vanity car which saw limited production and generated the early
revenue needed to fuel the production of its mainstream, commercially viable Model S that had a one year waiting
period. Tesla’s selective sales strategy enabled it to create its own coast-to-coast proprietary network that allowed
it to address the key consumer concern of range anxiety. Even with superior battery capacity, buyers would be
dissuaded from buying an EV without sufficient guarantee that they had convenient access to a charger on the
road.

Tesla’s competitors now face the dilemma of investing billions and many years into building their own charging
networks versus investing directly into building better EVs in terms of performance, specifications and battery
capacity. Choosing the former, they would remain years behind Tesla in terms of developing their own unique
EVs to sufficiently differentiate themselves and capture significant market share away from Tesla to make it worth
their network-building efforts. Choosing the latter, they would repeat Nissan’s mistake with its once popular Leaf

18
and leave buyers having to rely on a small number of independent charging providers that lack the exclusivity,
connectedness and reliability of Tesla.

Having prioritized building the network and sharpening its technological edge before investing heavily into
expanding production capacity and diversifying into different market segments, Tesla has great control over both
sides of the market. By owning the charging network, Tesla has greater autonomy to choose its pricing strategies,
rollout and expansion plans, location and data collection to constantly improve and cater to evolving needs. For a
long time, Tesla has chosen to only monetize the car and offer free refuelling at its various charging stations -- a
key perk of being a Tesla owner within the Tesla ecosystem. As it gradually consolidates its brand power and
consumers become aware of the clear superiority of Tesla’s networks, they are willing to pay a reasonable sum
(less than 50% of pumping petrol) for charging. This innovative business model has allowed Tesla to entrench its
dominance for many years to come and establish itself in a good position to scale revenue to maintain its
technological superiority.

4.3.1.2 Network effects

A network effect is defined as a phenomenon whereby a greater quantity of users improves the value of the good
or service (Banton, 2019). Tesla’s capitalization on network effects is central to its platform strategy to generate
incremental value for both itself and Tesla owners. With the chief assets being information and interactions in
platform businesses, Tesla collects statistics and data from its ever-growing pool of drivers to improve battery
management for all other drivers. This creates a supply-side network effect where Tesla is able to constantly
upgrade battery performance to improve the user experience, thereby increasing its resilience against challenges
from any of the five-forces. By entrenching the existing barriers to entry, Tesla’s internal optimization protects its
market share from erosion where market entrants are not accretive to the industry but merely challenging Tesla in
a particular sector (Ford’s Mustang in the luxury EV market, for example) (Isidore, 2021).

Another network effect also arises from the digital networking of cars and superchargers for more accessible and
affordable fast charging (Peter Schick, n.d.). This has often been academically referred to as an indirect network
effect (Li et al., 2017) -- where there is a strong interdependence between willingness to adopt EVs and the
charging station investments. Similar to the chicken-and-egg conundrum, while investors will be more
incentivized to expand the charging infrastructure with more EV owners, the same can be said for the flipside.
Potential EV owners will be more inclined to switch to EVs if there are greater investments into more accessible
charging infrastructure. Through the data Tesla accumulates, it is able to generate demand-side economies of scale
to seamlessly integrate consumer needs within its charging network expansion plans.

Tesla is also beginning to view third party charging station operators as possibly value adding to its platform
business -- as assets which can expand Tesla’s networks at a lower cost while simultaneously integrating
competitors within its own ecosystem. We see Tesla offering its adaptors either at cost or free to consumers and
independent charging stations. Tesla does not see this as compromising its exclusivity, since it is able to capitalize
on these small players to increase the usefulness of its cars at a tiny fraction of the cost of installing its own
superchargers at these marginal locations. Not only do Tesla owners benefit, these players also gain the patronage
of Tesla vehicles at their stations which once had incompatible charging ports. To some extent, this could further
widen the gap between Tesla and its major competitors. For example, while the CCS/Chademo charging network
is expected to match Tesla in terms of coverage, their charging speed remains ⅓ of Tesla cars and the number of
charging bays at each station is only a fraction of Tesla’s (1 - 2, compared to Tesla’s 8 - 40) (Templeton, 2019).
While these might previously have been enough to cater to the non-Tesla EVs, the sudden influx of Tesla vehicles
will remind consumers of Tesla’s superiority in terms of its vast, ever-growing supercharger network.

Additionally, as greater standardization of charging infrastructure is realised, the industry could collectively
benefit from the corresponding network effect of increased consumer willingness to adopt EVs as their preferred
mode of transportation.

19
4.3.1.3 Technological edge

As an industry pioneer, Tesla has a significant technological edge, perhaps even being years ahead of its
competitors. Through technological innovation to constantly reduce battery cost while improving its efficiency,
Tesla has achieved unrivalled success in addressing the major consumer concerns of price and range anxiety
through its architectural, incremental innovation to both product and process. This is something that few battery
suppliers and EV makers have focused on. Tesla’s low-cost, long-life battery technology has undoubtedly become
the dominant design which all its competitors are following (Shirouzu & Lienert, 2020).

As mentioned, Tesla vehicles have the furthest range. Moreover, Tesla’s constant breakthroughs in battery
technology, such as its 4860 tabless cells unveiled during its hyped “Battery Day” (Hawkins, 2020) will greatly
enhance the energy capacity, performance and range of its vehicles to maintain its competitive advantage.

4.3.1.4 Innovative marketing strategies

Tesla deeply understands the buyer’s journey, preferring to build a direct relationship between the brand and user.
Instead of advertising or selling through dealerships, buying a Tesla is as simple as placing an order on its website
and paying the deposit. Usually with dealerships, the brand is not involved in repairs, and no one expects the brand
to promise better performance on its existing products. However, Tesla’s infotainment software platform is
constantly being upgraded to improve the user experience, with data collected also improving the safety and
usability of its vehicles by promoting machine learning for self-driving and smarter battery management. While
omitting the middleman has allowed Tesla to gain greater control over its pricing, sales strategies and foster closer
consumer-brand synergy, it remains affected by region-specific regulations mandating car sales through
dealerships and unsupportive policies that could cause price fluctuations. However, with its plans to localize
production and successful efforts at negotiating deals with local governments, Tesla can likely turn the naysayers
into supporters of its relatable mission and lifestyle it markets.

4.3.1.5 Visionary CEO

Tesla’s immense brand power depends greatly on the personal brand of its CEO, Elon Musk. Although at times
controversial, he is touted as a visionary and is one of the key reasons for Tesla’s enduring popularity. He is
considered the man at the forefront of the fight to accelerate the world’s transition to sustainable energy and has
diversified Tesla’s portfolio beyond automobiles to envision an entire ecosystem of solar panels, gigafactories,
home electricity. His other ventures in space travel through SpaceX as well as the futuristic concept he has taken
Tesla towards in terms of avant-garde designs for the cybertruck are prime examples of how Musk has propelled
Tesla to the centre of media attention and garnered a cult following of ardent Tesla supporters. As he routinely
makes the news of becoming the world’s richest man again, the limelight on Tesla appears to be an immovable
fixture for now.

4.3.2 Weaknesses of Tesla

4.3.2.1 Cut throat competition

As Tesla leaves its competitors in the dust, it has also attracted the attention of legacy carmakers with substantial
manufacturing expertise, financial resources and large market shares. Given how the future of the automobile
industry is pointing towards EVs, these large companies are beginning to gear up towards prioritizing EV
development production. In 2022, it is estimated that around 450 new EV models will be released (Gersdorf et
al., 2020). Compared to Tesla, whose actual revenue and sales are insignificant compared to the dominant
carmakers like Toyota, they already have existing economies of scale, manufacturing proficiency and liquidity to
ramp up EV production at a rapid rate. These companies have been operating for many years with annual revenues
exceeding USD 100 billion, posing as a huge threat for Tesla if they are able to swiftly offer more EV options to
their existing huge customer base at lower costs. In the long run, Tesla does not have the financial reserves to
compete in price wars or competition with the deep pockets of these legacy carmakers.

20
In fact, Tesla’s market share is already facing threats in certain regions.

Figures 6.1 & 6.2: Europe plug-in sales in November 2020 (Clean Technica, 2020) & W-Europe BEV market
share (Schmidt Automotive Research, 2021)

In Europe for example, Tesla’s dominance has already been challenged by other large European carmakers, some
with explicit government banking. As we can see from the above diagram, Renault, Volkswagen and Hyundai
have surpassed Tesla’s sales in Europe in the mainstream market segment of sedans and family cars. For January
2021, Tesla’s Europe BEV market share shows a steady decreasing trend (to eighth place), owing largely to the
absence of local production facilities which translates to high shipping cost that prevents the lowering of costs. In
America, despite the expansion of production capacities, Tesla’s market share is also being challenged in the
luxury car sector by renowned brands like Ford’s Mustang Mach-E (Dhaliwal, 2021) and Porsche’s Taycan Cross
Turismo. Porsche, in particular, has seemingly surpassed Tesla in terms of charging speed and power despite its
limited range, raising the tech bar against the previously immovable Tesla (Rauwald, 2021).

This tight competition is also seen in other regions where receptiveness to Tesla has been lukewarm. For example,
Singapore initially was reluctant to back Tesla’s entry, with a Minister rebuking Tesla as selling merely a
‘lifestyle’ instead of real solutions to climate change (Bloomberg, 2019). Although Singapore has transitioned
towards greater acceptance of Tesla vehicles, with major taxi operators considering adding Tesla to its fleet (Tan,
2021), this is an example of how Tesla’s entry into untapped markets could be hampered by regional competitors
more aligned with the national policy outlook. This point is demonstrated in China, where the government backed,
partially state-owned EV start-up (NIO), is challenging Tesla's through its battery-swapping technology that is
expressly outlined in China’s national environmental development strategy. If China were to proceed with
investing in battery swapping stations versus charging stations, this could be hostile towards Tesla’s approach of
focusing on long-lasting, lower-cost batteries. Consumers would be more deterred from adopting Tesla vehicles

4.3.2.2 Narrowing technological gap

Despite having pioneered the development of many key technologies, Tesla has not managed to retain its
competitive advantage. This is largely due to its open-source patent philosophy, allowing free access of its
technology to its competitors in order to advance the shared vision of accelerating the automotive industry’s
transition to sustainable energy. This means that Tesla will not initiate lawsuits against competitors using its
technology in good faith. Tesla views patents as setting intellectual property landmines, and that sharing its
expertise in EV manufacturing will only promote the faster growth of EV programs in an industry that Tesla still
has a relatively small stake in. Tesla has emphasized that its greatest threat is not the small trickle of non-Tesla
EVs produced, but the overwhelming quantity of gasoline cars still being produced by the dominant carmakers
(Musk, 2014).

21
While the fear that these large companies can ride on Tesla’s many years of efforts at R&D and use their superior
sales, marketing and manufacturing power to cripple Tesla’s market share is valid, there is some merit to the
argument that this would expand the network effects to benefit Tesla. Due to its established charging networks
and proprietary technology, no one is coming close to put up a holistic challenge to Tesla’s hegemonic grip, albeit
a slowly loosening one. In fact, by entering Tesla’s EV market and relying on its technology, this could further
propel Tesla to take control over not just the minute EV sector but the entire automotive industry sooner. The
shared technological platform and EV ecosystem were created and established by Tesla, and in addressing some
of its own weaknesses like high price and limited production capacity, Tesla is providing solutions to common
problems shared by the EV industry as a whole. Instead of replacing or surpassing Tesla, competitors will be
following Tesla lead at the cost of an accelerated reduction of competitive advantage that these large companies
will inevitably overcome with their wealth of resources and expertise. In a way, Tesla has secured its ticket as a
fixture and leader in the EV market. Coupled with Tesla’s plans to monetize/productize the gigafactories
(Fox,2020) which make the product/car and creation of its own energy trading and control platform “Autobidder”
(Tesla, n.d.), losing immediate products in exchange for setting the rules of the game seems like a worth-it trade-
off.

4.3.2.3 Limited production capacity

As above mentioned, carmakers are attacking Tesla’s market share on all fronts -- from the lower-end market
segments of smaller utility cars, to the mainstream sedan and SUVs and to the high-end luxury cars. With Tesla’s
limited fleet of EVs, its plans to diversify its range of cars to penetrate the mainstream and lower segments of the
markets can only be achieved through cost reductions arising from economies of scale via vertical integration and
localization of production facilities.

Tesla is unable to scale its production to meet market demand fast enough to achieve its goals and will benefit
from an industry-wide shift towards prioritizing EV production. Going back to the concept of indirect network
effects, only when the bulk of the automotive industry put their weight behind EV production will investments
and buyer confidence increase to trigger an exponential growth of both EV adoption and its enablers. With Tesla
still falling short of its production targets in 2020 (Reuters, 2021), the long activation time of gigafactories and
protectionist policies favouring domestic carmakers, these weaknesses need time, collective industry-wide effort
and investments to overcome. Compared to large carmakers who already have existing factories that can be readily
converted to produce EV components, or those still making huge profits off ICE and hybrid vehicles while
conducting research into their own EVs using Tesla’s technologies at the same time, Tesla has to start from zero.
Although Tesla has plans to reduce its dependence on battery manufacturers and switch to in-house battery
production instead, the renewal of its contracts with existing suppliers like Panasonic and CATL show that true
vertical integration might not succeed so quickly. Previously, Tesla has blamed Panasonic’s limited production
capacity for hampering its growth, with Panasonic demonstrating reluctance to scale production over fears that its
batteries may run out given Tesla’s explosive growth (Hull & Alpeyev, 2019). Ironically, for a company premised
on sustainability Tesla is still far from truly self-sustaining.

Although Tesla is already starting to scale up production with its 2 new gigafactories, its dwindling market share
in regions where it lacks local production facilities show that this is still a work in progress. The economies of
scale Tesla is beginning to reap has been effective in allowing it to price competitively below the market price of
an ICE vehicle (Alvarez, 2020). However, there are some underlying threats to cutting down battery cost per
kilowatt due to Tesla (and the industry’s) overreliance on the scarce resources of cobalt and nickel as key battery
components (Mullaney, 2020). Elon Musk has previously called for the mining industry to increase their supply
of nickel, with this supply-side factor being a big hurdle for the industry’s race to cut battery cost. While cobalt is
rare and expensive, Tesla has realised that its reliance on Nickel might also be misguided given concerns of
environmental sustainability -- where the huge volumes of waste generated makes eco-conscious mining of nickel
impractical (Financial News Media, 2020). While scaling production, Tesla has to simultaneously tackle these
future threats and balance the shocks arising from feedback loops in its network effect coming from sources
beyond its control and lead to disproportionate fluctuations of market forces.

22
4.4 Localisation of EVs

Earlier, we established the interdependence of the different stakeholders in building up the EV ecosystem. In this
section, we will be examining the development of the EV ecosystem in different countries to understand the
differences in strategy required for a car manufacturer to break into a local market.

4.4.1 Development of EVs in Singapore

Singapore has had an interesting history with electrical vehicles. Despite being one of the first cities to begin EV
testing at the systems levels back in 2011, the government never leaned towards private ownership of EVs until
as late as 2020. The predominant policy at that point in time was cutting car ownership and improving the public
transport network, primarily focused on testing if a one-way car-sharing model could be viable in Singapore. This
project continued into 2017 where the Land Transport Authority CTO Lam Wee Shann announced that BlueSG’s
car sharing service will play an integral part in reducing Singapore’s reliance on private vehicles.

Tesla in particular has had much trouble entering the Singapore automobile market, with controversies even
arising in 2016 where Elon Musk directly approached Singapore’s Prime Minister regarding the social media spat
of an early Singaporean Tesla owner being slapped with a SGD $15 000 carbon surcharge when other tailpipe
emission-free cars qualified for a SGD $30 000 carbon rebate (Tan, 2016). These conflicts seemingly continued
all the way to 2019 when Tesla CEO Elon Musk criticized the Singapore Government of being unsupportive of
EVs. In response, then Environment and Water Resources Minister Masagos Zulkifli claimed that Singapore was
“interested in proper solutions that will address climate problems'', rather than a “lifestyle” that Tesla offered. Mr
Masgos would also affirm that hydrogen is a better long-term alternative due to the high-density public housing
increasing the difficulty of developing adequate charging stations.

While local companies like BlueSG still have a significant advantage over global brands due to existing
infrastructure, the future of private EVs appears bright with the recent launch of the inter-ministerial Singapore
Green Plan 2030. The Green Plan, with the ambitious goal to build 60,000 EV charging points and a requirement
for all newly registered cars to be of cleaner energy models by 2030, will be supported by the S$30 million set
aside for EV related initiatives (LTA, 2021).

Tesla’s reintroduction to the Singaporean market in early Feb 2021 was met with much optimism. Be it due to
momentum of the EV bandwagon or the extremely competitive pricing offered by Tesla, the enthusiastic response
from the Singaporean public is a far cry from what the current miniscule Tesla population on Singaporean roads
would suggest (LTA, 2020).

What then, has caused this massive difference in reception from the average Singaporean consumer? For one,
consumers’ range anxiety was seen to be resolved by the government's plan to install key infrastructures such as
large amounts of charging facilities/charging points national-wide. Compared to the government’s non-committal
attitude regarding EVs in the past years, The Green Plan showcased a commitment to transition to phasing out
ICE vehicles. This showcased the necessity for firms to integrate their strategy with the broader narrative set forth
by governments in order to succeed locally.

4.4.2 Development of EVs in China

With more than 1 million EV sales in 2020, China is undisputedly the largest market for EVs globally (Richter,
2021). From EVs to battery manufacturing, Chinese firms are poised to enter all across the EV supply chain over
the next five years, largely due to lower costs of material compared to the overseas market. In particular, more
than a third of the global market for electric batteries are manufactured by Chinese companies Contemporary
Amperex Technology and BYD (Cheng, 2020).

The direction of China’s EV policies vary over the years. While the past focus for EV car makers had largely
consisted of subsidies, many of these subsidies were dramatically cut and others eliminated completely. Instead,
China now focuses on their zero-emission vehicle mandate that requires Chinese vehicle manufacturers and
importers to make or import at least 12% electric vehicles (Hard et al., 2019). Factories for manufacturing non-

23
electric vehicles such as ICE vehicles only are highly discouraged and exceptions must include capacity for the
construction of electric vehicles.

On the consumer side, the Chinese government exempts electric vehicles from consumption and sales taxes on
top of their consumer subsidy program (La Shier, 2018). This significantly decreases the upfront cost for
consumers to transition to electric vehicles. Many local or provincial governments also have their own methods
of promoting EVs such as expediting the process of obtaining license plates or free/preferential parking for EVs.
For example, getting a licence plate in Beijing can take years for a conventional vehicle but only plates for EVs
can be obtained in months. In Hainan, provincial officials have announced that the sale of fossil fuels cars will be
banned in the province from 2030 (Liu & Ma, 2019). While this may seem like a long time in the future, it is far
more progress compared to the Chinese government which has not announced a timetable despite announcing
plans to do so since 2017.

On the governmental side, the Chinese government passed an order in 2016 that requires half of all new vehicles
procured to be new energy vehicles within five years (Moss, 2017).

Other than subsidising the manufacturers and consumers, China has spared no effort in building up the supporting
ecosystem for EVs. Starting from 2015, the Government required a minimum of one public charging for every
EV in key cities of the eastern coastal provinces and for the public charging service radius to be less than 0.9 km
in urban core areas (China Energy Portal, 2017).

Figure 7: China’s EV charging infrastructure (NEA, 2019)

With such heavy investment by the government, it is no surprise that EVs make up a larger percentage of car sales
in China compared to the rest of the world. Considering China’s large population size, supportive policies could
exponentially expand the percentage of EVs on road vis-a-vis total car ownership. However, not all policies
directly help global EV manufacturers break into the Chinese market. Tesla, for example, is beginning to
encounter setbacks despite its initial ground-breaking entry into the Chinese market in a highly scrutinized move
that set many precedents.

More than 20% of Tesla sales in 2020 came from China, more than double that of the previous year. While it may
appear that Tesla is projected to dominate the Chinese EV market as it did in the US, new governmental policies
as well as competition from local brands stand in their way. Chinese start-up Nio is expected to grow to become
Tesla’s biggest competitor in the Chinese market in the years ahead, having recently received a $1 billion bailout
from the government that has converted it to become partially state-owned. Despite recent moves by NIO to buy
back some of the 24% shares held by the Government, it will eventually only retain 90% of shares (Song, 2021).
This demonstrates how the Government could have a strong influence in shaping NIO developmental plans but at
the same time this strong stake would also guarantee NIO unrestrained potential for growth within China.
Additionally, NIO’s strategic partnership with the state-owned JAC motors to use its production facilities for
production translates into significant cost savings as it no longer has to apply for its own manufacturing license

24
or set up its own factories like Tesla. Such benefits could allow NIO to focus its attention to improve its vehicle
design, R&D and expand its battery swapping facilities with the backing of governmental funding.

China is expected to initiate its strong push to develop the domestic EV manufacturing sector, providing
infrastructural support and funding to futuristic and acclaimed brands like NIO to ride the EV wave. In its “The
Development Plan for the New Energy Vehicle Industry (2021-2035)” released by the State Council, China’s
commitment to EVs was decisively rehashed as the ““major direction in the transformation of the global
automotive industry” (Wübbeke, 2020). However, Tesla might see itself being excluded from China’s grand plan.
Despite being the first foreign carmaker endorsed to operate a wholly owned production plant, it had been
instructed by the State Administration for Market Regulation to relook and strengthen internal management to
abide by Chinese laws (Bloomberg, 2021). This came after viral videos spread of Tesla cars catching fire, sparking
fears over Tesla’s production quality and safety. Once touted as the safest car ever made, Tesla is losing consumer
confidence in China rapidly as a result (Bloomberg, 2021). In March 2020, Tesla cars were banned from Chinese
military installations over accusations of spying, which Musk vehemently denied (Toh, 2021). Beyond these
controversies, China’s temperamental subsidy policies have repeatedly forced Tesla to make sacrifices to align
themselves with the Chinese policy direction. For example, it was forced to cut its Model 3’s prices by 10% in
order to qualify for the new subsidy standard of passenger cars below 300 000 yuan (Reuters, 2020).

While Tesla and most EV manufacturers are sticking to bettering their batteries and superchargers, Nio prefers a
battery swap system. Discarded by Tesla in 2014, Nio has taken this idea further than any other company and with
China investing heavily into Power Swap stations nationwide (Wang, 2020), battery swaps have the potential to
become mainstream in China. Nio has completely automated their battery swap system which takes less than 5
minutes and does not even require the driver to exit the vehicle. This is at a significant time advantage compared
to the 45 minutes required for a full charge at Tesla’s superchargers (Tesla, 2021). Besides the time saved for
getting a full charge, Nio has more importantly pushed down the upfront cost of purchasing an EV by selling their
batteries separately as a subscription service. By opting into this subscription service, consumers can reduce the
cost of purchasing a Nio EV by more than 30% (Nio, 2020). Nio has smartly evaded the existential question of
high battery cost by eliminating batteries from the buyer’s cart entirely. Instead of focusing on developing better
batteries, it can focus its resources on expanding the battery swapping stations or its on-demand recharging van
service while waiting for Tesla to expend time and resources on improving battery technology.

China’s focus on battery swapping technology does not mean that Tesla’s goals of a global supercharging network
is flawed. After all, Nio’s battery swapping stations are not without their flaws, these stations are still not cost-
effective and have maintenance issues due to the automated nature of such a system (Baldwin, 2020). While Nio’s
battery swap system is able to partially avoid the problem of high battery costs, Tesla’s pursuit of a better battery
through innovation is much more promising for a future where EVs are sustainable without the significant
subsidies offered today. Tesla's constant drive at revolutionising the energy storage industry is testament of their
ability to turn threats into potential opportunities and has paved their way towards success so far.

25
In the EV market, Tesla is the incumbents and NIO is the entrant, serving to disrupt the EV market through low
market entry. A disruptive innovation is a new low-cost product that serves the low end market but with potential
technological performance to meet mainstream demand.

Conditions Explanation

Performance overshoot Consumers of EV do not necessarily require a battery with especially large
(incumbents) capacity, as long as there is an abundance of refuelling stations

Entrant’s performance meets NIO battery swap technology meets the basic needs of consumer which is to
the customer’s demand avoid range anxiety

Motivation asymmetry Tesla discarded the idea of battery swapping and has chosen to develop a
global supercharger network

As seen in the table, the 3 conditions of disruptive innovation are met and thus, NIO is a disruptive innovation.
Additionally, NIO penetration point is at the low-end market. However, it has constantly released new models by
adding new features in hope of capturing the main market from Tesla. Its focus on SUV models (which Tesla has
yet to produce) acutely identifies the predominant market trend in China and is only expected to grow from its
current low sales to possibly take over Tesla as the leader from the Chinese EV industry with the backing of the
government. However, with the industrial restructuring plans under the 15-year plan to eventually consolidate the
industry to prevent overcapacities, the “survival of the fittest” approach will eliminate most sub-tier carmakers to
leave only quality brands. Tesla is still projected to survive in China for the foreseeable future, but its dominance
could be shaken by the Chinese focus on supporting domestic brands (Wübbeke, 2020).

5.0 Future Developments

5.1 Future developments for EV manufacturers

5.1.1 General EV production

As seen in the diagram below, EV production is set to be the predominant mode of production for many car
manufacturers by 2030 -- notably forming ⅔ of Honda’s global sales, and 50% of the European market from
BMW.

26
 Figure 8: Timeline of EV production targets (Woodward, et al., 2020)

5.1.2 Batteries
5.1.2.1 Battery modifications

EV manufacturers are in a race to produce the cheapest batteries to become industry cost-leaders-- considering
batteries make up 30% of the cost of producing EVs (Boudway, 2020). The removal of nickel and cobalt from
batteries has emerged as the immediate next-step development EV manufacturers are working toward to cut costs
(Hu, 2020). Svolt Energy Technology Co. Ltd., for example, recently saw a breakthrough in move toward cobalt-
free battery options in a development that promises to remove cobalt from the cathode materials in their batteries.
Svolt Energy Technology Co. Ltd. sees this development as a part of their future business resilience strategy also
because of the volatility of cobalt prices, with a large proportion of cobalt production reigning from Congo, as
seen in the chart below. However, EV manufacturers are still cautious about the losses in energy density and
potential safety issues resulting from the removal of cobalt from EV batteries, choosing to cut percentages rather
than find alternatives. Tesla, however, has led the way in developing a lithium-iron phosphate battery that does
not contain cobalt or nickel (Mullaney, 2020).

5.1.3 Battery transformation

EV manufacturers are expected to expedite their transition to solid state batteries (SSB) in the near future,
primarily to take advantage of the added safety benefits and energy density of SSBs (Frost & Sullivan, 2020).
SSBs also have the added advantage of geographic versatility, having a wider range of operating temperatures,
being able to function in colder temperatures where liquid state batteries might potentially freeze over.

The unviability of hydrogen cells, other than their safety concerns, would be attributed to their inefficiencies.
Once the electricity is provided – preferably from a renewable source – the supply to EVs degrades by around
5%. The battery loses another 10% as it is charged and discharged. Finally, driving the car consumes another 5%
of the motor's energy. This equates to a 20% loss overall. However, with a hydrogen fuel cell, one must first
convert electricity to hydrogen using electrolysis, which is only 75% effective. The gas must then be compressed,
chilled, and shipped, resulting in a further 10% loss. The conversion of hydrogen to electricity in a fuel cell is
only 60% effective, after which there is the same 5% loss from driving the vehicle motor as in a BEV.

27
The overall loss is 62%, or more than three times the amount invested. For perspective, for every kW of electricity
supplied, a BEV generates 800 watts, while an FCV generates just 380 watts – less than half as much. This results
in great inefficiency, and the improbability of hydrogen cars being dominant in the future.

5.1.4 Vehicle type diversification

The reach of EV extends beyond sedans and private use, but also to vehicle types with more niche functions, such
as semi-trucks, racecars, and even air and sea vehicles. This expands market penetration opportunities for EV
manufacturers, as they open up new markets to capture beyond road vehicles for general consumption. The Global
Motorsports Market, for example, is expected to grow to 8.55 billion USD in 2025 (Market Data Forecast, 2020).

5.2 Future developments surrounding EV enablers

5.2.1 Policy and Legislation

Government intervention continues to be a significant driver of EV sales, as seen in the successful EV uptake in
Norway, its patchy performance in the Netherlands and how the tides had turned for the Chinese EV market
(European Commission, 2017). While the economic benefits states can reap from encouraging EV adoption are
clear, the normative ideals of environmental norms have also made EV adoption a necessary step for states to
achieve their climate change goals (Woodward, et al., 2020).

States have various fuel economy and emission targets that are under constant review. In the European Union,
punitive fines that seek to be fully rolled out in 2021 will affect up to half of car manufacturers, which will cost
the industry about 39 billion USD (Woodward, et al., 2020). To avoid these financial implications, car
manufacturers would move toward emission reductions through electrification.

City access restrictions on the use of older combustion engines to mitigate toxic air pollution. Major European
cities such as Rome, Madrid and Seattle have already moved to reduce the number of ICE vehicles on the road,
setting a trend for other major cities to follow in order to reduce air pollution and set boundaries for combustion
engine vehicles, and private cars in general. This would, then, make the way for EVs to fill the vacuum left by
ICE vehicles. Many states have offered financial incentives to consumers to make the switch to EVs such as
providing subsidies and reducing taxes on EVs or, inversely, raising taxes on ICE vehicles. This development
aims to allow EVs to reach price parity with ICE vehicles to ease EVs into the consumer market as a viable and
affordable vehicle option. For example, in France, EV consumers that pay up to 50K USD for an EV now receive
an almost 8000 USD incentive, up from 7000 USD (Sigal, 2020).

5.2.2 Infrastructure

The primary infrastructural enablers for EV include charging stations and power grids underlying EV ecosystems,
and they appropriately form one of consumers’ top concerns-- the lack of charging infrastructure (Woodward, et
al., 2020). Charging stations come in the form of home charging stations and public charging stations, with the
bulk of technological development arriving in the latter public charging stations. Rapid public charging stations
are able to charge an EV to 80% capacity within 30 minutes, though it is worth noting that they cost 7-9 times
more than normal public charging stations-- this price differential hinging on the states’ ability to affordably install
such stations, which in turn depends on the sophistication of their power grids (Woodward, et al., 2020). For
example, while French and German power grids would likely be able to handle the installation of rapid charging
stations, American power grids might require extensive upgrading to support these installations, driving up costs
(Philip & Wiederer, 2010). This has seen American states like Texas investing 650 million USD into upgrading
its grid over 20 years to prepare itself for the EV transition (Groom & Bellon, 2021).

Additionally, with the EV charging market poised to grow to 45.59 billion USD by 2025, regulatory practices
surrounding charging infrastructure providers will also seek to break up monopolies and anti-competitive practices

28
(Philip & Wiederer, 2010). This would prevent a lock-in effect on EV consumers, driving competitive rates for
the charging station providers.

5.3 Future landscape of the automotive industry

5.3.1 Downward trend of car ownership

The decline in car ownership is a future development that might threaten the uptake of EVs-- though, as we will
later explain in section on ride sharing, could also work for the good of EV uptake. The decline in EV uptake, for
example, was seen in how, in January, car production in the UK dropped by 18.2%, to 1.49 million vehicles a year
(Edwards, 2019). Even worse, in Turkey, consumers had cut their car purchases by a staggering 60% since January
2018 (Ibid).

5.3.2 Ride sharing

The uptake of EVs could find a strong driver in the ride-sharing economy, mitigating the effect of declining car
ownership. For example, Uber’s pledge toward being a zero-emission platform by 2040, as well as their goal of
having 100% of their rides take place in EVs in U.S., Canadian and European cities by 2030 has been echoed by
other platforms (Shieber, 2020). By 2030, Lyft plans to have a fully electric fleet. Didi Chuxing, a Chinese
company, revealed in 2018 that it intends to have 10 million electric vehicles on its network by 2028. Ola, an
Indian ride-hailing company, has also announced its ‘Mission Electric' initiative, which aims to add millions of
electric vehicles (Khurana, 2021).

Didi Chuxing has partnered with BYD to co-design custom electric vehicles for ride-hailing and has formed a
joint venture with BP to develop charging infrastructure (Reuters, 2020). Uber has pledged $800 million in
funding to assist drivers in making the transition to electric cars, as well as forming multiple alliances with car
manufacturers and charging infrastructure providers around the globe.

6.0 Conclusion

In the automotive energy storage industry, the traditional hegemony of gasoline powered vehicles has been
usurped by alternative energy vehicles like hybrid vehicles and EVs. With a greater global emphasis on
environmental sustainability, countries and carmakers alike are shifting away from ICEs through a combination
of incentives and regulatory measures. EVs are touted as the future of the automotive industry despite its current
limited market share, due to its clear advantages like sustainability, lowest cost of driving and better performance.
Its cons of high price, range anxiety and dependence on supporting infrastructure are also being rapidly addressed
through collaborative R&D into better battery technologies, expansion and standardization of charging networks
and public sector support for major stakeholders (carmakers, charging station operators and battery manufacturers)
through government investments, bailouts and supportive policy making.

However, this is not to say that the industry does not face any threats. The low adoption rate of EVs cannot be
tackled by the efforts of Tesla alone, who faces its fair share of challenges in terms of cut-throat competition,
narrowing technological edge and limited production capacity. Tesla is a unifying factor for the 3 main
stakeholders as it is actively involved in all aspects of the EV industry, which is why we chose it as our industry
leader to contextualize the strengths and weaknesses of the EV industry as a whole. From examining Tesla’s
threats and innovation strategies and evaluating Tesla’s success or failures in all aspects (production, expansion,
marketing), we are able to attain a holistic understanding of the opportunities and threats that the EV industry
faces as a whole. The choice of Singapore as a localized case study allows us to examine Tesla’s tumultuous
journey of expansion here to derive valuable insights into the interplay of local carmakers, charging providers and
the role of local governments in EV adoption. From initial rejection to eventual acceptance, we realise that the
success of EVs still largely depends on whether companies are able to integrate with the broad national narrative
regarding environmental preservation. The lessons from Singapore as a miniature of the global EV market allows
us to understand the practical challenges the EV industry faces, providing us with valuable insights into the

29
intricate interlinks of interdependence between stakeholders and consumers that function on a sliding scale of
mutual complementariness, competition and coexistence.

Through the case study of China, we examine an interesting example of how disruptive start-ups come up with
creative solutions to a key weakness of the EV industry through vehicle battery separation, thereby effectively
side-lining not only Tesla but also domestic battery manufacturers. We evaluate such competing approaches and
discuss whether this counts as innovation or if it is just an intermediary solution that merely avoids the core of the
threat. Despite explicit government support for this alternative battery swapping approach that seems to debase
the business model and direction that Tesla is spearheading, we explained why this should not take the credit away
from Tesla’s persistence at sustaining innovation and affirmed Tesla’s approach at revolutionizing energy storage
for EVs as turning threats into potential opportunities.

As countries around the world pledge deadlines to cease ICE reliance and completely switch to EVs, there is
infinite potential for the EV industry. Since hybrid vehicles can never truly replace ICE cars, the time when our
roads are filled with electric vehicles is just a matter of time. How well, how fast and how smooth the transition
will be depends on whether the stakeholders are able to strengthen their advantages, overcome their weakness,
mitigate the threats and capitalize on opportunities.

2021. The rEVolution is well on its way.

30
Bibliography

Adner, R. & Kapoor, R. (2016, November). Right Tech, Wrong Time. Harvard Business Review. Retrieved
from: https://hbr.org/2016/11/right-tech-wrong-time

AFDC. (n.d.). Emissions from Hybrid and Plug-In Electric Vehicles. U.S. Department of Energy. Retrieved
from: https://afdc.energy.gov/vehicles/electric_emissions.html

Allstar. (n.d.). Hybrids vs Electric vs Petrol. Retrieved from: https://www.allstarcard.co.uk/news-

insights/fuel-and-fleet/fleet-news/hybrids-vs-electric-vs-petrol/

ALT Perspective. (2021, February 5). NIO vs. Tesla: Which is the better investment today (nyse:nio).
Retrieved from: https://seekingalpha.com/article/4403528-nio-vs-tesla-which-is-better-investment-
today

Alvarez, S. (2020, July 22). Electric cars like Teslas now cheaper to own than gas cars in Europe: study.
Teslarati. Retrieved from: https://www.teslarati.com/tesla-evs-cheaper-than-gas-cars-study/

Amadeo, K. (2020, August 31). OPEC Oil Embargo, Its Causes, and the Effects of the Crisis. The Balance.
Retrieved from: https://www.thebalance.com/opec-oil-embargo-causes-and-effects-of-the-crisis-
3305806#:~:text=The%20OPEC%20oil%20embargo%20was%20an%20event%20where%20the%
2012,The%20embargo%20contributed%20to%20stagflation.

Are hybrid Cars Popular?: Ask Hybrid FAQs Toyota Motor Europe. (2019, June 06). Retrieved from:
https://www.toyota-europe.com/hybrid/are-hybrid-cars-popular

Baldwin, R. (2020, November 10). China's NIO Lets EV Drivers swap batteries in 5 Minutes, hit the road.
Retrieved from: https://www.caranddriver.com/news/a33670482/nio-swappable-batteries-lease/

Barber, M. (2017, September 22). Before Tesla: Why everyone wanted an electric car in 1905. Curbed.
Retrieved from: https://archive.curbed.com/2017/9/22/16346892/electric-car-history-fritchle

Batteries for hybrid and plug-in electric vehicles. (n.d.). Retrieved from:
https://afdc.energy.gov/vehicles/electric_batteries.html

BCG. (January 9, 2020). Breakdown of global car sales in 2019 and 2030, by fuel technology [Graph]. In
Statista. Retrieved from: https://www-statista-com.libproxy.smu.edu.sg/statistics/827460/global-
car-sales-by-fuel-technology/

Bhargava, H.,Boehm, J. & Parker, G. (2021, January 27). How Tesla’s Charging Stations Left Other
Manufacturers in the Dust. Harvard Business Review. Retrieved from: https://hbr.org/2021/01/how-
teslas-charging-stations-left-other-manufacturers-in-the-dust

Bloomberg. (2019, August 22). Singapore hits back at Elon Musk, saying electric cars are a ‘lifestyle’ and
mass transit better for climate. South China Morning Post. Retrieved from:
https://www.scmp.com/news/asia/southeast-asia/article/3023835/singapore-hits-back-elon-musk-
saying-electric-cars-are

Bloomberg. (2020, December 8). Hybrids are quietly selling faster than fully electric cars. The Business
Times. Retrieved from: https://www.businesstimes.com.sg/transport/hybrids-are-quietly-selling-
faster-than-fully-electric-cars

31
Boudette, N. (2021, January 27). Tesla Has First Profitable Year, but Competition Is Growing. The New
York Times. Retrieved from: https://www.nytimes.com/2021/01/27/business/tesla-
earnings.html?auth=link-dismiss-google1tap

Boudway, I. (2020, December 16). Batteries For Electric Cars Speed Toward a Tipping Point. Retrieved
from: https://www.bloomberg.com/news/articles/2020-12-16/electric-cars-are-about-to-be-as-
cheap-as-gas-powered-models

Business Upturn. (2021, March 2). Top 10 most valuable car companies in the world in 2020. Retrieved
from: https://www.businessupturn.com/auto/top-10-most-valuable-car-companies-in-the-world-in-
2020/

CAA Auto Advice. (2019, August 14). What are the main functions of car battery? Retrieved from:
https://www.caasco.com/blog/Automotive/the-main-functions-of-a-car-battery

Carsdirect. (2020, March 11). A Brief History of Hybrid Cars. Retrieved from:
https://www.carsdirect.com/green-cars/a-brief-history-of-hybrid-cars

CarsDirect Staff. (2019, July 29). How reliable is an electric car engine? Retrieved from:
https://www.carsdirect.com/green-cars/how-reliable-is-an-electric-car-engine

Cheng, E. (2020, October 22). China's electric Car strategy is starting to go Global – and the U.S. is lagging
behind. Retrieved from: https://www.cnbc.com/2020/10/23/chinas-electric-car-strategys-
implications-for-us-energy-security.html

China, NEA, NEA. (2018). 电动汽车充电基础设施发展指南 (pp. 15-16).

Clayton, J. (2020,September 23). Musk: Cheaper Tesla ready 'in about three years'. BBC. Retrieved from:
https://www.bbc.com/news/technology-54244612

Coal-gas powered vehicles. (2020, July 12). Retrieved from: http://www.douglas-

self.com/MUSEUM/TRANSPORT/gascar/gascar.html

Collins Dictionary. (n.d.). internal combustion engine. In collinsdictionary.com dictionary. Retrieved from:
https://www.collinsdictionary.com/dictionary/english/internal-combustion-engine

Country detail incentives. (n.d.). Retrieved from: https://www.eafo.eu/countries/belgium/1724/incentives

Country detail incentives. (n.d.). Retrieved from:

https://www.eafo.eu/countries/germany/1734/incentives#:~:text=Germany%20%2D%20Ownership
%20Tax%20Benefits,vehicles%2C%20not%20hybrid%20vehicles

Cromer, G. C. , Purdy, . Ken W. , Cromer, . Orville C. and Foster, . Christopher G. (2020, October 29).
Automobile. History Of The Automobile. Encyclopedia Britannica. Retrieved from:
https://www.britannica.com/technology/automobile/History-of-the-automobile

Daimler. (n.d.). 1885–1886. The first automobile. Retrieved from:

https://www.daimler.com/company/tradition/company-history/1885-1886.html

Davis, R. (2020, December 8). Cheaper tech, savings at pump: Hybrid cars selling fast than fully EVs.
Business Standard. Retrieved from: https://www.business-standard.com/article/automobile/cheaper-
tech-savings-at-pump-hybrid-cars-selling-fast-than-fully-evs-120120800158_1.html

32
Davis, R. (2020, December 8). Hybrids Are Quietly Selling Faster Than Fully Electric Cars. Bloomberg
Green. Retrieved from: https://www.bloomberg.com/news/articles/2020-12-07/hybrids-are-quietly-
selling-faster-than-fully-electric-cars

De Decker, K. (2011, November 13). Gas bag vehicles. Retrieved from:

https://www.lowtechmagazine.com/2011/11/gas-bag-vehicles.html

Dhaliwal, S. (2021, March 4). Tesla Is Bleeding Battery EV Market Share To Ford's Mustang Mach-E:
Morgan Stanley. Benzinga. Retrieved from: https://www.benzinga.com/analyst-ratings/analyst-
color/21/03/20000716/tesla-is-bleeding-battery-ev-market-share-to-fords-mustang-mach-e-morgan-
stanley

Eagle, J. [jcceagle] (2021, January 6) [OC] Tesla is now bigger (in market cap) than the next 10 biggest
automakers. I've compressed its rise over the last two years in a minute. Enjoy! [Online forum
post]. Reddit. Retrieved from:
https://www.reddit.com/r/dataisbeautiful/comments/kr3wy9/oc_tesla_is_now_bigger_in_market_ca
p_than_the/

Edwards, J. (2019, March 03). Carpocalypse now: Lyft's founders are right - we're in the endgame for
traditional 'car ownership'. Retrieved from: https://www.businessinsider.com/carpocalypse-cars-
automobile-sales-data-us-europe-2019-3

EESI. (n.d.). Energy Efficiency. Environmental and Energy Study Institute. Retrieved from:
https://www.eesi.org/topics/energy-efficiency/description

Electric vehicle charging infrastructure development guidelines (2015-2020). (2017, February 16). Retrieved
from: https://chinaenergyportal.org/en/electric-vehicle-charging-infrastructure-development-
guidelines-2015-2020/

Elliott, C. (2020, August 7). Should I Buy An Electric Car Or Hybrid Now? Forbes. Retrieved from:
https://www.forbes.com/sites/christopherelliott/2020/08/07/should-i-buy-an-electric-car-or-hybrid-
now/?sh=35a98edd34c6

European Commission. (2017, February 16). Reducing CO2 emissions from passenger cars - before 2020.
Retrieved from: https://ec.europa.eu/clima/policies/transport/vehicles/cars_en

EV Technology: The History & Future of Electric Vehicles. (2020, September 05). Retrieved from:
https://www.arrow.com/en/research-and-events/articles/the-history-and-future-of-electric-vehicles

Evans, C. (2021. January 1). What is a hybrid car and should you buy one? Whatcar? Retrieved from:
https://www.whatcar.com/news/what-is-a-hybrid-car-and-should-you-buy-one/n1290

External Combustion Engine: Types & Uses. (2017, August 28). Retrieved from:
https://study.com/academy/lesson/external-combustion-engine-types-uses.html.

February 1936: The diesel engine celebrates its premiere in the passenger car. (n.d.). Retrieved from:
https://media.daimler.com/marsMediaSite/en/instance/ko/February-1936-the-diesel-engine-
celebrates-its-premiere-in-the-passenger-car.xhtml?oid=9915149

Financial News Media. (2020, November 11). Why Sustainable Nickel Supply Could Become A 'Serious
Issue' For EV Market. Cision. Retrieved from: https://www.prnewswire.com/news-releases/why-
sustainable-nickel-supply-could-becoming-a-serious-issue-for-ev-market-301170601.html

33
Fox, E. (2020, July 15). Tesla Gigafactory Is The Product Even More Than The Car, Says Elon Musk.
Tesmanian. Retrieved from: https://www.tesmanian.com/blogs/tesmanian-blog/tesla-gigafactory-is-
the-product-even-more-than-the-car-says-elon-musk

Frost and Sullivan. (2020). Technological advancements in solid state batteries for electric vehicles.
Retrieved from: https://www.researchandmarkets.com/reports/5238482/technological-
advancements-in-solid-
state?utm_source=CI&utm_medium=PressRelease&utm_code=2m94ss&utm_campaign=1493504
%2B-
%2BTechnological%2BAdvancements%2Bin%2BSolid%2BState%2BBatteries%2Bfor%2BElectri
c%2BVehicles%2C%2B2020%2BReport%2B-
%2BToyota%2Bis%2Bthe%2BPioneer%2Bof%2BSolid-
state%2BBattery%2BResearch%2Band%2BDevelopment%2Bwith%2Ba%2BLion%27s%2BShare
%2Bof%2BPatent%2BOwnership&utm_exec=chdo54prd

Fuel cell electric vehicles. (n.d.). Retrieved from: https://afdc.energy.gov/vehicles/fuel_cell.html

Function Point Modeler. (n.d.). End-User Efficiency. Retrieved from:

http://www.functionpointmodeler.com/fpm-
infocenter/index.jsp?topic=%2Fcom.functionpointmodeler.fpm.help%2Fditafiles%2Fconcepts%2F
con-107g.html

Future Bridge. (2020, May 20). Energy Storage – Primary Focus Area of Automotive Industry. Retrieved
from: https://www.futurebridge.com/blog/why-is-energy-storage-the-primary-focus-area-of-the-
automotive-industry/

Gersdorf, T., Hertzke, P., Schaufuss, P. & Schenk, S. (2020, July 17). McKinsey Electric Vehicle Index:
Europe cushions a global plunge in EV sales. McKinsey. Retrieved from:
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/mckinsey-electric-
vehicle-index-europe-cushions-a-global-plunge-in-ev-sales#

Gersdorf, T., Schaufuss, P., Schenk, S., & Hertzke, P. (2020, December 14). McKinsey electric Vehicle
Index: Europe CUSHIONS a global plunge in EV sales (1267190775 936358663 E. Hannigan,
Ed.). Retrieved from: https://www.mckinsey.com/industries/automotive-and-assembly/our-
insights/mckinsey-electric-vehicle-index-europe-cushions-a-global-plunge-in-ev-sales

Global electric vehicle MARKET 2020 and forecasts. (2021, February 8). Retrieved from:
https://www.canalys.com/newsroom/canalys-global-electric-vehicle-sales-
2020#:~:text=New%20research%20from%20Canalys%20shows,passenger%20car%20market%20i
n%202020.

Gold, A. (2020, February 27). Electric vs gasoline cars: History shows this is nothing new. Retrieved from:
https://www.automobilemag.com/news/electric-vs-gasoline-cars-history-repeats/

Groom, N., & Bellon, T. (2021, March 05). EV rollout will require huge investments in strained U.S. power
grids. Retrieved from: https://www.reuters.com/article/us-usa-weather-grids-autos-insight-
idUSKBN2AX18Y

Hard, C., Zhu, J., & Ying, J. (2019). Mapping China's Climate & Energy Policies (pp. 104-105, Rep.). New
York, New York: Development Technologies International.

Hawkins, A. (2020, September 22). Tesla announces ‘tabless’ battery cells that will improve range of its
electric cars. The Verge. Retrieved from: https://www.theverge.com/2020/9/22/21449238/tesla-
electric-car-battery-tabless-cells-day-elon-musk

34
History.com Staff. (2012, December 11). Who built the first automobile? Retrieved from:
https://www.history.com/news/who-built-the-first-automobile

Hotten, R. (2015, December 10). Volkswagen: The SCANDAL EXPLAINED. Retrieved from:
https://www.bbc.com/news/business-34324772

How do battery electric cars work? (2015, February 5). Retrieved from:
https://www.ucsusa.org/resources/how-do-battery-electric-cars-
work#:~:text=Battery%20electric%20vehicles%2C%20or%20BEVs,or%20a%20dedicated%20char
ging%20unit.

How to get an EV subsidy In France. (2020, August 18). Retrieved from:

https://blog.wallbox.com/en/france-ev-incentives/

Hu, T. (2020, June 12). EV battery technology speeding up as carmakers seek to reduce cobalt usage.
Retrieved from: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-
headlines/ev-battery-technology-speeding-up-as-carmakers-seek-to-reduce-cobalt-usage-59024499

Huang, E. (2018, December 19). China's making it super hard to build car factories that don't make electric
vehicles. Retrieved from: https://qz.com/1500793/chinas-banning-new-factories-that-only-make-
fossil-fuel-cars/

Huang, E. (2019, May 15). By 2038, the world will buy more passenger electric vehicles than fossil-fuel
cars. Quartz. Retrieved from: https://qz.com/1618775/by-2038-sales-of-electric-cars-to-overtake-
fossil-fuel-ones/

Hull, D. & Alpeyev, P. (2019, April 22). Tesla’s Musk takes on Panasonic in a rare public battle with a key
supplier. Los Angeles Times. Retrieved from: https://www.latimes.com/business/la-fi-hy-tesla-
musk-panasonic-20190422-story.html

Hyundai. (n.d.). Charging into the Future: Inside Korea’s Fastest EV Charging Station. Retrieved from:
https://www.hyundai.com/worldwide/en/brand/ev-charging-station-gangdong

IEA. (2019, March). Multiple Benefits of Energy Efficiency. International Energy Agency. Retrieved from:
https://www.iea.org/reports/multiple-benefits-of-energy-efficiency/emissions-savings

Internal combustion engine basics. (2013, November 22). Retrieved from:

https://www.energy.gov/eere/vehicles/articles/internal-combustion-engine-
basics#:~:text=The%20engine%20consists%20of%20a,in%20turn%20rotates%20the%20crankshaft
.&text=After%20the%20piston%20compresses%20the,piston%20during%20the%20power%20stro
ke.

Isidore, C. (2021, March 5). Ford's Mustang Mach-E is eating into Tesla's US sales. CNN Business.
Retrieved from: https://edition.cnn.com/2021/03/04/business/ford-mustang-mach-e-tesla-market-
share/index.html

J.M.K.C. Donev et al. (2018). Energy Education - External heat engine [Online]. Retrieved from:
https://energyeducation.ca/encyclopedia/External_heat_engine. [Accessed: March 21,

Jolly, J. (2020, October 21). Electric cars 'as cheap to manufacture’ as regular models by 2024. The
Guardian. Retrieved from: https://www.theguardian.com/environment/2020/oct/21/electric-cars-as-
cheap-to-manufacture-as-regular-models-by-
2024#:~:text=Electric%20cars%20'as%20cheap%20to%20manufacture'%20as%20regular%20mod
els%20by%202024,-

35
 This%20article%20is&text=Electric%20cars%20will%20cost%20the,imminent%2C%20according
%20to%20new%20research.

Khurana, J. (2021, January 20). Ride-hailing platforms will lead the global EV TRANSITION. Retrieved
from: https://www.intelligenttransport.com/transport-articles/115477/ride-hailing-ev/

Kuttan, S. (2021, February 03). Commentary: Electric vehicles will take over Singapore. but Here's what
must happen first. Retrieved from: https://www.channelnewsasia.com/news/commentary/singapore-
budget-2020-electric-vehicles-ice-ves-hybrid-car-2040-12457240

La Shier, B. (2018, February 28). Comparing U.S. and Chinese electric Vehicle policies. Retrieved from:
https://www.eesi.org/articles/view/comparing-u.s.-and-chinese-electric-vehicle-policies

Li, S., Tong, L., Xing, J., & Zhou, Y. (2017). The market for electric vehicles: Indirect network effects and
policy design. Journal of the Association of Environmental and Resource Economists, 4(1).

Liu, Y., & Ma Zhiping, Z. (2019, March 12). Hainan launches plan to stop Selling fossil-fuel cars by 2030.
Retrieved from: http://www.chinadaily.com.cn/a/201903/12/WS5c871b18a3106c65c34ee217.html

Lowe, D. P., Lin, T. R., Wu, W., & Tan, A. C. (2011). DIESEL KNOCK COMBUSTION AND ITS
DETECTION USING ACOUSTIC EMISSION. Journal of Acoustic Emission, 29.

LTA. (2020). Annual Vehicle Statistics 2020. Retrieved from:

https://www.lta.gov.sg/content/dam/ltagov/who_we_are/statistics_and_publications/statistics/pdf/M
VP01-6_Cars_by_make.pdf

LTA. (2021, March). Factsheet: Accelerating Nationwide Deployment of Electric Vehicle Charging Points.
Retrieved from: https://www.lta.gov.sg/content/ltagov/en/newsroom/2021/3/news-
release/Accelerating_nationwide_deployment_of_electric_vehicle_charging_points.html

MacKenzie, A. (2012, December 10). 2013 Motor Trend Car of the Year: Tesla Model S. Motortrend.
Retrieved from: https://www.motortrend.com/news/2013-motor-trend-car-of-the-year-tesla-model-
s/

Mackenzie, W. (2019, January 20). When Will Tesla Make A Profit? Forbes. Retrieved from:
https://www.forbes.com/sites/woodmackenzie/2020/01/20/when-will-tesla-make-a-
profit/?sh=51093f951ba9

Market Data Forecast. (2020, February). Global Motorsports Market: SIZE, Trends, forecast: 2020 – 2025.
Retrieved from: https://www.marketdataforecast.com/market-reports/motorsports-marketfrom:
https://www.scmp.com/business/companies/article/3122297/teslas-quality-ranking-slips-consumer-
reports-annual-survey

Melosi, M. V. (n.d.). Automobile and the environment in american history: Energy use and the internal
combustion engine. Retrieved from:
http://www.autolife.umd.umich.edu/Environment/E_Overview/E_Overview3.htm#:~:text=The%20
first%20gasoline%2Dfueled%2C%20four,their%20modern%20stage%20of%20development.

Meticulous Research, M. (2021, January 14). Top 10 companies in electric vehicle charging Stations Market.
Retrieved from: https://meticulousblog.org/top-10-companies-in-electric-vehicle-charging-stations-
market/

36
Moss, T. (2017, October 02). China, with Methodical Discipline, conjures a market for electric cars.
Retrieved from: https://www.wsj.com/articles/china-with-methodical-discipline-takes-global-lead-
in-electric-cars-1506954248

Mullaney, T. (2020, June 30). Tesla and the science behind the next-generation, lower-cost, 'million-mile'
ELECTRIC-CAR BATTERY. Retrieved from: https://www.cnbc.com/2020/06/30/tesla-and-the-
science-of-low-cost-next-gen-ev-million-mile-battery.html

Musk, E. (2014, June 12). All Our Patent Are Belong To You. Tesla. Retrieved from:
https://www.tesla.com/en_SG/blog/all-our-patent-are-belong-you

NIO battery as a service. (2020). Retrieved from: https://www.nio.com/baas

Office of Energy Efficiency & Renewable Energy. (n.d.). Electric Vehicle Basics. Retrieved from:
https://www.energy.gov/eere/electricvehicles/electric-vehicle-basics

Office of ENERGY EFFICIENCY & RENEWABLE ENERGY. (n.d.). How does a lithium-ion battery
work? Retrieved from: https://www.energy.gov/eere/articles/how-does-lithium-ion-battery-work

Palmer, B. (2020, July 31). Electric vs. GAS: Is it cheaper to drive an EV? Retrieved from:
https://www.nrdc.org/stories/electric-vs-gas-it-cheaper-drive-ev

Peter Schick. (n.d.). TESLA business model: innovation, scale and network effects. Retrieved from:
https://peterschick.eu/tesla-business-model-innovation-scale-and-network-effects/

Philip, R., & Wiederer, A. (n.d.). Policy options for electric vehicle ... - Harvard University. Retrieved from:
https://www.innovations.harvard.edu/sites/default/files/1108934.pdf

Pilkington, A. & Dyerson, R. (2004). Incumbency and the Disruptive Regulator: 127 The Case of Electric
Vehicles in California. International Journal of Innovation Management, 8 (4), pg. 339-354.

Proctor, C. L. (n.d.). Internal-combustion engine. Retrieved from:

https://www.britannica.com/technology/internal-combustion-engine

Rauwald, C. (2021, March 4).Porsche Adds More Spacious Taycan to Further Challenge Tesla. Bloomberg.
Retrieved from: https://www.bloombergquint.com/business/porsche-readies-more-spacious-taycan-
to-further-challenge-tesla

Research, H. (2020, November 13). Diesel vs. gasoline: Everything you need to know. Retrieved from:
https://www.caranddriver.com/research/a31515330/diesel-vs-
gasoline/#:~:text=Diesel%20fuel%20simply%20packs%20more,mostly%20engaged%20in%20city
%20driving.&text=For%20most%20U.S.%20consumers%2C%20diesel,fuel%20cost%20about%20
the%20same.

Reuters. (2020, November 16). Didi Chuxing, BYD roll out CUSTOMIZED vans For ride-hailing service.
Retrieved from: https://www.reuters.com/article/us-didi-chuxing-electric-byd-idUSKBN27W1K6

Reuters. (2021, January 2). Tesla 2020 deliveries beat estimates, but fall just short of Musk's target.
Retrieved from: https://www.reuters.com/article/tesla-deliveries/tesla-2020-deliveries-beat-
estimates-but-fall-just-short-of-musks-target-idUSKBN2970EV

Richter, F. (2021, February 23). Chart: Which countries have the largest electric car markets? Retrieved
from: https://www.weforum.org/agenda/2021/02/electric-vehicle-market-global

37
Riswick, J. (2019, February 22). What is a Hybrid Car and How Do They Work? Car and Driver. Retrieved
from: https://www.caranddriver.com/features/a26390899/what-is-hybrid-car/

Ritchie, H. (2020,October 6). Cars, planes, trains: where do CO2 emissions from transport come from? Our
World in Data. Retrieved from: https://ourworldindata.org/co2-emissions-from-transport

Rivero, N. (2021, January 9). Tesla is now worth more than Facebook. Quartz. Retrieved from:
https://qz.com/1954768/teslas-stock-market-value-is-now-higher-than-facebook/

ScienceDirect. (n.d.). Energy Storage System. Retrieved from:

https://www.sciencedirect.com/topics/engineering/energy-storage-
system#:~:text=Energy%20storage%20system%20(ESS)%20refers,Security%20Issues%20in%20
Microgrids%2C%202020

Shieber, J. (2020, September 08). Committing to a fully zero-emission fleet by 2040, Uber is DEDICATING
$800 million to electrifying its drivers. Retrieved from:
https://techcrunch.com/2020/09/08/committing-to-a-fully-zero-emission-fleet-by-2040-uber-is-
dedicating-800-million-to-electrifying-its-drivers/

Shifting gears: Investing in CHINA'S electric Vehicles market. (2016, May 11). Retrieved from:
https://www.china-briefing.com/news/china-shifts-gears-electric-vehicles

Shirouzu, N. & Lienert, P. (2020, May 14). Exclusive: Tesla's secret batteries aim to rework the math for
electric cars and the grid. Reuters. Retrieved from: https://www.reuters.com/article/us-autos-tesla-
batteries-exclusive/exclusive-teslas-secret-batteries-aim-to-rework-the-math-for-electric-cars-and-
the-grid-idUKKBN22Q1WC

Siddiqui, F. (2020, January 11). Teslas still go much farther on a single charge than their competitors. But
the strategy carries risks. The Washington Post. Retrieved from:
https://www.washingtonpost.com/technology/2020/01/10/tesla-battery-range/

Sierzchula, W., Bakker, S., Maat, K. & van Wee, B. (2012). The competitive 129 environment of electric
vehicles: An analysis of prototype and production models. Environmental Innovation and Societal
Transitions 2, 49-65

Sigal, P. (2020, May 26). France to help auto sector with measures Worth $8.8b. Retrieved from:
https://europe.autonews.com/automakers/france-help-auto-sector-measures-worth-88b

Singapore Green Plan 2030. (n.d.). Retrieved from: https://www.greenplan.gov.sg/

Song, J. (2021, March 08). Nio forms JV with AUTOMAKER JAC in attempt to take Production in-house.
Retrieved from: https://kr-asia.com/nio-forms-jv-with-automaker-jac-in-attempt-to-take-production-
in-house

Steam cars. (n.d.). Retrieved from: https://www.thehenryford.org/collections-and-research/digital-

collections/expert-sets/105070/

Supercharging. (2021, March 02). Retrieved from:

https://www.tesla.com/support/supercharging#:~:text=Superchargers%20in%20urban%20areas%20
deliver,50%20minutes%20in%20city%20centers

Tan, C. (2016, March 5). Electric car Tesla slapped with $15,000 tax surcharge. The Straits Times. Retrieved
from: https://www.straitstimes.com/singapore/transport/electric-car-tesla-slapped-with-15000-tax-
surcharge

38
Tan, C. (2021, February 9). Tesla S'pore sales portal goes 'live'; Model 3 Standard Range to cost $113,000
before COE. The Straits Times. Retrieved from:
https://www.straitstimes.com/singapore/transport/tesla-singapore-sales-portal-goes-live

Templeton, B. (2019, December 2019). Competing Electric Car Charging Standards Can Be Easily Fixed.
Forbes. Retrieved from: https://www.forbes.com/sites/bradtempleton/2019/12/19/competing-
electric-car-charging-standards-can-be-easily-fixed/?sh=51317ac53f40

Tesla. (n.d.). Retrieved from: https://www.energy.gov/lpo/tesla

Tesla. (n.d.). On the Road. Retrieved from: https://www.tesla.com/en_SG/supercharger?redirect=no

Tesla. (n.d.). Support. Retrieved from: https://www.tesla.com/en_SG/support/tesla-energy-software

Tesla Cars Banned by China Military on Concerns Over Cameras. (n.d.). Retrieved from:
https://www.bloomberg.com/news/articles/2021-03-19/tesla-cars-banned-by-china-s-military-on-
concerns-about-cameras

Tesla cuts price for China-made Model 3 cars by 10% to qualify for subsidies. (2020, May 01). Retrieved
from: https://www.reuters.com/article/us-tesla-china-price-idUSKBN22D458

Toh, M. (2021, March 22). Elon Musk responds to Spying concerns in CHINA: Trust us, we're just like
TikTok. Retrieved from: https://edition.cnn.com/2021/03/22/tech/elon-musk-tesla-china-military-
ban-intl-hnk/index.html

Toyota. (2020, February 3). Toyota and Panasonic Decide to Establish Joint Venture Specializing in
Automotive Prismatic Batteries. Retrieved from:
https://global.toyota/en/newsroom/corporate/31477926.html

Toyota. (2021, January 28). Toyota's 2020 Global Sales down 10.5 Percent Year-on-Year. Retrieved from:
https://global.toyota/en/company/profile/production-sales-figures/202012.html

Toyota named number 1 motor vehicle company on Fortune Magazine's 2020 "world's Most ADMIRED"
LIST. (2020, January 21). Retrieved from: https://pressroom.toyota.com/toyota-named-number-1-
motor-vehicle-company-on-fortune-magazines-2020-worlds-most-admired-list/

Trefis. (2014, June 16). What Tesla Stands To Gain From Sharing Its Patents. Forbes. Retrieved from:
https://www.forbes.com/sites/greatspeculations/2014/06/16/what-tesla-stands-to-gain-from-sharing-
its-patents/?sh=3272aa63665d

Trefis. (2020, February 11). Comparing Tesla With Toyota. Forbes. Retrieved from:
https://www.forbes.com/sites/greatspeculations/2020/02/11/comparing-tesla-with-
toyota/?sh=1a6ed65a53ad

TÜV NORD GROUP. (2019, April 18). A brief history of the internal combustion engine. Retrieved from:
https://www.tuev-nord.de/explore/en/remembers/a-brief-history-of-the-internal-combustion-engine/

US Department of Energy. (n.d.). Timeline: History of the Electric Car. Retrieved from:
https://www.energy.gov/timeline/timeline-history-electric-car

Wagner, I. (2020, April 22). Estimated worldwide motor vehicle production between 2017 and 2019, by
type. Retrieved from: https://www.statista.com/statistics/1097293/worldwide-motor-vehicle-
production-by-type/.

39
Wang, K., & Ke, Y. (2018). Public-Private Partnerships in the Electric Vehicle Charging Infrastructure in
China: An Illustrative Case Study. Advances in Civil Engineering, 2018, 1–10.
https://doi.org/10.1155/2018/9061647

Wang, T. (2020, August 17). EV battery-swapping finds new life in China. Retrieved from:
https://news.cgtn.com/news/2020-08-16/EV-battery-swapping-finds-new-life-in-China-
SWZQhFZoEE/index.html

What is Electric Vehicle. (n.d.). Retrieved from: https://www.business-standard.com/about/what-is-electric-

vehicle#:~:text=An%20electric%20vehicle%20(EV)%20is,mix%20of%20fuel%20and%20gases.

Woodward, M., Hamilton, J., Dr, & Walton, B., Dr. (2020, June 28). Electric vehicles. Retrieved from:
https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-
2030.html

Wübbeke, J. (2020, November 25). China's new NEV plan targets BATTERY Electrics, 'QUALITY brands'
· TechNode. Retrieved from: https://technode.com/2020/11/25/chinas-new-nev-plan-targets-
battery-electrics-quality-brands/

Yang, H., & Jin, H. (2019, November 26). Factbox: The world's BIGGEST electric vehicle battery makers.
Retrieved from: https://www.reuters.com/article/us-autos-batteries-factbox-idUSKBN1Y02JG

Yap, S. (2016, March 9). More Singaporeans living in condos, younger generation staying unmarried longer:
Survey. AsiaOne. Retrieved from: https://www.asiaone.com/more-singaporeans-living-condos-
younger-generation-staying-unmarried-longer-survey

40