Over investment is part of capitalism. Remember global Crossing? Remember when they were laying fiber everywhere? The boom-bust cycle of capitalism is inevitable and ultimately accures benefit to the middle class
An estimate by Bloomberg Intelligence says that battery factories on the drawing boards and under construction by in China could have a production capacity of more than 120 GWh annually by 2021 — enough to power 1.5-2 million electric vehicles.
Elon Musk has estimated that the world will require the equivalent battery production capacity of 100 Gigafactories.
In Euorpe a consortium of companies headed by the German company TerraE Holding GmbH has plans to build a 34 GWh lithium-ion battery factory in response to Tesla’s Gigafactory.
“There’s a kind of arms race on batteries around the world. We know that Elon Musk with Tesla has got this Gigafactory. The Chinese are racing to overtake him; they’ll have three times the capacity.” Giles Keating, chairman of the Werthstein Institute, told CNBC.
Giles Keating believes that the major automakers have been “in denial” about the future of electric cars.
“I think Tesla was always all about electric cars, whereas I think the conventional auto manufacturers, they were in denial. They just kind of almost wanted batteries to be weak so that they wouldn’t have to go that route so that their existing route of business can continue, if I’m brutal about it,” Keating told CNBC.