Tesla and the challenges for EVs

Electric vehicles (EV) have become more popular nowadays. I am seeing more Tesla and BYD on the road, even though there are many challenges for these to become mainstream. These challenges, however, really require strong determination and really technological breakthrough to achieve this.

Let's consider the standpoint of the driver, whom should be the EV's primary audience. There are a few barriers that EVs need to overcome to convert. 

The primary set back of EVs is its battery. 

To start with, EVs' battery can only allow a maximum mileage of 300KM. This is only on full charge and the battery is new. With repeated charging and the battery age, the mileage per charge will deteriorate, as to how much? I am not sure. But considering the charged-up usage of my mobile dropping from 2 days to 1 within months (with careful charging). I am in doubt the battery of similar material can maintain high utilization after 1 year or so.

The limitation of the battery mileage is especially a con to EV users especially for those who needs regular long-distance trip. Me for instance travel between Kuala Lumpur and Singapore, each trip is at lease 350KM one way. This means that I need at least one charging even before I reach my destination, I do not have such issue with gas driven vehicles. This brings me to the second limitation, its charging.

Full charge requires around 30 minutes, which is a long time as compared to a less than 5 minutes work for gas refill. Even a quick charge needs about 10 minutes. I still remember witnessing a Tesla charging station while on business trip in Hong Kong many years ago. There was a long queue of Tesla for 3 charging stations. Time is money and it really not worth the wait.

"But it is more environmentally friendly."

Is it true?

Have the environmentalist look into the manufacturing of EVs, especially the electronics and its battery design utilizing Litium ion?

While electronics or digital design of EV enable greater safety for drivers and passengers, the manufacturing process is far from environmental-friendly. The production of ICs for instance introduces dangerous chemicals such as gallium and arsenide. 

Energy storage for EV utilizes Litium. The extraction of material for Litium and its compaion materials such as Cobalt poses environmental risk such as water pollution and endangerment of human and animal lives. while Litium is a component in the making of Litium ion batteries, it is rarely recycled as compared to the more valuable metals that is also used in the production process.

Moreover, the production of Litium ion batteries as well as the electronics requires the use of rare earth, which again poses environmental corrosion in its process of extraction. 

While many claim that EV uses electricity instead of fossil fuel leads to carbon emission. Many ignore the fact that EV charging now come from power mains which in many countries uses carbon combustion such as coal and natural gas. It is a zero-sum game. 

Moreover, now you are buying energy from a single source instead of multiple sources. 

I made an entry last week on BYD and at the end of that chapter, I mentioned that I will look into Tesla since I have put one foot into EV companies.

I did an entry on Tesla quite some time ago in Tesla..... dated 19th Dec 2022. I was puzzled at the time why Tesla price was heading south when Tesla was a hit in the market. More people were adopting EVs as their vehicle of choice, and being a leader in EV, its share should be going up.

I estimated its support level to be between 137 to 205. 

Tesla bottom out at 101.81. It then reversed and start climbing upward, reached its peak at 299.29 before retreating. 

Fig 1. Tesla weekly chart

However, in its decline, it crosses the previous top. This makes the whole move between Jan to Jul 2023 a 3-wave pattern. 

Even on its decline, it exhibits a congestion behavior of which previous lows are violated. It seems to me that Tesla is still in a counter wave move.

Relatively speaking, it is at present meeting both the upward and downward objective and it is difficult to say if its general direction is up or down from here. Considering its movement from Jul to Oct 2023, I will say that there should be a continuation upward.

Its reversal upward since 29th Oct 2023 look congested and lacking in upward momentum, trapped within a channel. Moreover, as of 26th Nov 2023, it reaches the downward trendline, I foresee further decline after this. 

You may find the 2 paragraphs above contradict each other. I believe that the general direction is still upward but it needs to first come down. For the time being, I do not have a support level for this guy other thn its prevvious low of 194, breaking this, next level to watch will be 152.