PGIM Investments: Electric Vehicles: New Rules for the Road

We believe the leading electric vehicle players will redefine the relationship between carmakers and consumers, driving a major transformation of the auto industry.

• Fully connected, smart electric vehicles (EVs) promise to revolutionize the industry’s 100-year old business model by fundamentally changing the relationship between the car owner and the automaker.
• These EVs offer the potential for auto manufacturers to expand the revenue and cashflow streams they derive from each car beyond the point of sale—from software subscriptions to insurance.
• We believe full self-driving (FSD) will make the full monetization of cars possible, and we expect implementation within a decade.

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