Companies tied to the emerging electric vehicle (EV) sector saw their share prices surge Monday following a Chinese government official’s announcement over the weekend that China has begun investigating when to ban fossil fueled automobiles completely.
“Some nations have created a timeline for when to quit the production and sales of classic fuel automobiles,” the vice minister of China’s Ministry of Industry and Information Technology, Xin Goubin, stated Saturday, according to state-run Xinhua News Agency.
Following this, Xin telegraphed that his country’s auto sector — the largest on the planet — need to seriously prepare in advance for the ministry’s findings and start to commence their strategies accordingly:
“The ministry has also started relevant investigation and will make such a timeline with relevant departments. Those measures will certainly bring profound adjustments for our automobile industry’s improvement.”
The vice minister’s statements had been welcomed by electric vehicles, who saw a spike in their stock prices as the week began. Tesla Motors, for example, which only produces electric vehicles and is readying to roll out its initially mass-industry vehicle, the Model three, saw its stock rise five percent.
BYD Auto, China’s largest EV manufacturer, similarly saw its shares climb Monday, with prices rising in each its Hong Kong and Shanghai markets. The stock worth of yet another Chinese vehicle maker, BAIC Motor Corp.,climbed nearly 3 % following the news of the Chinese government’s intentions.
But the celebration wasn’t for vehicle makers only. Even firms connected to the electric vehicle industry made gains. Jiangxi Gangfeng Lithium, which specializes in lithium-mainly based solutions — such as the batteries that bring energy to electric powered vehicles — saw its share worth rise over 5 percent on Monday.
There were other nations vice minister Xin alluded to more than the weekend — nations searching to altogether ban the production and sale of fossil fuel-mainly based vehicles — include countries such as the United Kingdom, France, Norway, and India.
Both France and the United Kingdom have presented plans to end the production of gas-powered vehicles by 2040. India desires all automobiles produced inside their nation to run on electrical power by 2030. Norway has planned an even earlier deadline, saying automobiles on its streets need to generate zero emissions by the year 2025.