it's a holiday shortened week but from key data on the docket to certain stocks continuing to break records there's still lots to talk about let's get to Jill malandrino at the NASDAQ hey gel hey Rochelle electric car sales are breaking new records with momentum expected to continue through 2023 with the demand surging worldwide the International Energy agency believes that sales of battery-powered vehicles are set to break records once again leading to Historic transformation in the Auto industry that could eventually challenge the dominance of internal combustion engines requesting by 2030 replacing pumps with plugs is set to avoid the use of at least 5 million barrels of awe of oil a day the overwhelming majority of electric car sales today are concentrated in China the United States and Europe although sales are beginning to flourish in emerging economies as well electric car sales more than tripled in Indian Indonesia last year and more than doubled in Thailand in Emerging Markets two and three-wheeled EVS outsell their four-wheeled counterparts offering affordable and sustainable mobility and cars bikes and light vehicles are just the start with heavier EVS such as buses and trucks expected to become more commonplace in the future in fact Amazon just announced on Monday that it has begun rolling out its custom electric delivery bands from rivian in Europe This will be rivian's first commercial shipment of Vans outside the United States the iea currently expects to see 14 million in sales by the end of 2023 representing a 35 percent year on year increase with new purchases accelerating in the second half of this year as a result electric cars could account for 18 percent of Total Car Sales across the full calendar year now Jill we know that Tesla stock has been really going gang busters of late but what's the outlook for the industry at Large Auto stocks have traded very well thanks to the bullish EV production figures reported by U.S and Chinese oems although investors should keep their enthusiasm in check until the margins associated with these volumes are known for Tesla that will come on July 19th when the company reports Q2 earnings here's part of the challenges that relates to earnings in April the Environmental Protection Agency proposed a rule intended to significantly curtail carbon emissions if adopted it would require that electric vehicles make up 60 percent of all new vehicles sold by 2030 and 67 percent by 2032. it was a significant escalation from the Biden administration's previous goal of 50 electric vehicles by 2030. now Tesla's four percent plus better than expected 2q deliveries in combination with global pricing Trends which appeared of roughly stabilized since declining sharply in the first quarter paint a bit better picture of demand for Tesla vehicles than was the case at the time of first quarter earnings in April and as such JP Morgan modestly increased earnings estimates even though they the stock underweight analysts are concerned about valuation and although both technology and execution risk seem substantially less than was once feared JPMorgan believes that expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand execution and competitions now risks to that thesis include the demand for Tesla vehicles could rise materially gasoline prices could increase we know opec's doing Cuts or government penalties and regulations on Rival internal combustion engine Vehicles could increase as well which could drive adoption toward electric vehicles benefiting Tesla and finally better than expected execution and operating targets that's the risk of the underweight thesis all right we do appreciate that update Jill malandrino there for us at the NASDAQ thanks so much
