To enlighten investors on the impact of the breakthroughs and opportunities they should embark on, ARK Invest began publishing Big Ideas in 2017. The annual research reports seek to highlight the latest development in innovation and offer some of ARK's most provocative research conclusions for the year.

The EV market is ever-changing and competing with the traditional fuel-run vehicles, with leaders in the EV market now developing and innovating battery design to last more extended range at a lower cost. Also, Electric Vehicles are approaching sticker price parity with gas-powered cars. Ark forecast that EV sales would increase to 40 million in 2025; at present, EV sales are 2.2 million. And the most significant downside risk to Ark's forecast depends on traditional automakers' successful transition to electric and autonomous vehicles.

Electric Vehicle Sales Have Taken Share In Good Times And Tough Times

Wright's Law Has Modeled The Decline In Battery Costs Successfully

According to Wright's Law, for every cumulative doubling of units produced, battery cell costs will fall by 28%. The most significant cost component of an EV is its battery, so these cost declines are critical to reaching price parity with gas-powered vehicles.

Electric Vehicles Are Approaching Sticker Price Parity With Gas-Powered Cars

The total cost of ownership for a like-for-like EV dropped below that of a Toyota Camry in 2019.1 Soon, sticker prices likely will do the same. 

At Today’s Battery Prices, Cell-To-Vehicle Technology Enables Longer Range EVs At Lower Prices

Cell-to-vehicle designs increase the volumetric density of batteries by 50% relative to battery cells integrated into modules and packs.

In the mass market, this technology should enable EV makers to lower energy density and cost cells, producing more kilowatt-hours to increase the range of vehicles. With the given battery pack size, cell-to-vehicle technology would enable more extended ranger in cars at a lower price.

Read the complete research HERE