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One of the pivotal reasons why electric vehicles have soared this year is due to their relative simplicity. Historically, Chinese automobile manufacturers attempted to compete with their Japanese and Korean counterparts, only to be met with failure. The reality is that making quality internal combustion engine cars is difficult. But with EV batteries, most of that complexity is sidestepped, bolstering the fundamentals case for Nio (NYSE:NIO) stock.
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Essentially, EVs have fewer moving parts than combustion cars. By removing that component and replacing it with a lithium-ion battery pack, the heart of the EV becomes commoditized. However, that also removes most of the character of a car. Although I can’t say for certain, I’d bet that’s why Ferrari (NYSE:RACE) doesn’t want to build an EV. For the iconic exotic car company, character