Is it possible that the electric vehicle story isn't actually about the vehicles themselves, but about battery suppliers and business model innovators?
For generations, manufacturers like Toyota and General Motors earned most of the profits in the automotive industry. While manufacturers are struggling today, suppliers and distributors are in just as bad, if not worse, shape.
A recent Wall Street Journal article described how assembling electric vehicles is relatively simple. "Electric cars use only basic motors and gearboxes, and have relatively few parts," the article notes. "Aside from perfecting the battery itself, they're far easier and cheaper to build -- and that makes for a level playing field."
What impact would a simpler-to-produce product with a key performance-defining component have?
Read the rest at Scott's Harvard Management blog.
