The American electric car manufacturers have received an assuring sense of hope for the future after receiving a commendable vote of confidence from an entrepreneurial legend.
Recent happenings seem to have reduced the chances of electric cars ever overtaking their gas-guzzling counterparts in America anytime soon. The removal of the tax credits for buying an electric vehicle and the hand-in-hand working of some America’s most powerful corporations with the fossil fuel industry both attest to this fact.
Despite the seemingly slow growth situation, Warren Buffett has a rather different opinion. According to the billionaire investor, a proliferation of electric cars is almost inevitable.
In an interview with CNBC‘s Joe Kernan, Buffett said: “I think you’re gonna have a lot of people pushing electric cars in the United States, even if the subsidy is going away.” He disclosed that electric cars are the future of American automobile, stressing that this future is much sooner than even the autonomous driving.
Concerning how this future can be reached, Buffett believes that through innovations, American automakers will grow their own. He told CNBC that without any form of government assistance, the market running on its own will still get there fast enough. Buffett confirmed that from his perception, there are lots of concerted industry efforts and those movements are in the right direction. “I think you’ll see American companies quite aggressive in that field,” Buffett said.
During the interview, Buffett did acknowledge as well as celebrated China’s emphatic push for ecologically-friendly technology like electric cars. He, however, insisted that the subsidies of the government must not be Stateside. Buffett instead said from his thought, car manufacturers will move to electric without any form of assistance.
“I’m all for the Chinese doing what they’re doing in terms of the planet,” Buffett said. “It’s a good thing, so I cheer ’em for doing it. I don’t think we’ll need to do it in the United States.”
Buffett does really believe in the China automobile market, that explains why he has invested in a Chinese electric-car company. He can read the trends of the event and as such understand that China currently offers huge benefits to investors who seek to gain an advantage in the emerging trend of electric cars. However, he is optimistic that China will not perpetually overtake the American electric cars industry as thought by many due to their aggressive move in the sector.
From Buffett’s words, it’s obvious to see how much faith he has in the American automobile industry, and how this faith has paid off for him. For Buffett, the little real competition faced by the American electric car manufacturers is a springboard for their growth.