Goldman says buy Tesla and stocks with electric car exposure...

Goldman says buy Tesla and stocks with electric car exposure
Esha Dey
Apr 16, 2020 – 7.45am
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The significant pullback in US auto stocks creates an opportunity for investors to own long-term growth names including Tesla and other companies exposed to electric vehicles, Goldman Sachs says.
Even with petrol at about $US2 ($3.20) per gallon (3.8 litres), the total cost of ownership for electric cars is already competitive with vehicles powered by traditional internal combustion engines in select categories, like mid to high-end cars, analyst Mark Delaney wrote in a note to clients.

The Model Y, pictured, "will help Tesla to have more traction in the important SUV and crossover market", Goldman said.
"We expect the total cost of ownership for electric vehicles to become increasingly attractive over time as battery prices fall and internal combustion engine cars have added costs to meet emissions requirements," he said.
Goldman's newly created global autos team expects electric car penetration to rise to nearly 15 per cent by 2030, from 2 per cent in 2019.
Tesla has a significant lead over other car makers in making electric cars and is expected to maintain a strong market position, Delaney said. The company is helped by its strong brand, vertical integration, and early-mover advantage in an industry with generally long development cycles where it takes about two to four years to roll out new models.