Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Technology
Anusuya Lahiri

Russia-Ukraine Crisis Could Dampen EV Ambitions Of Tesla, Ford And Others: FT

  • Russia's attack on Ukraine has highlighted concerns about oil dependency and petrol prices just as EV manufacturers look to deliver a wide range of greener cars, Financial Times reports
  • Ukraine is a significant producer of the miles of cables and connectors that power many cars' electrical systems. Russia's importance as the crucial rare earth minerals provider will be a significant headwind.
  • Read: Russia Impact - London Metal Exchange Suspends Nickel Trading After 250% Price Spike
  • An extraordinary surge in oil prices could prove to be a significant demand trigger for EVs. However, it could also cause a supply crisis.
  • The global semiconductor shortage and shipping delays have affected inventory levels. Additionally, crucial components for batteries have extended lead times. 
  • Recently, Ford Motor Co (NYSE:F), Stellantis NV (NYSE:STLA), and Honda Motor Co Ltd (NYSE:HMC) shared ambitious plans to speed up EV production. At the same time, Tesla Inc (NASDAQ:TSLA) won permission to open a new battery factory in Europe.
  • Due to the supply crisis and longer waiting times, higher prices could also discourage the new EV buyers, FT notes.
  • There is also a possibility of a demand correction once the oil prices stabilize.
  • Price Action: TSLA shares traded higher by 2.38% at $844 in the premarket on the last check Wednesday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.