Learning Goal: I’m working on a management question and need an explanation and answer to help me learn.
The Chinese company BYD is pursuing electric cars and hopes to become the world’s largest car company. With the financial support of American Warren Buffett, the company, which has only been in existence for a few years mostly making batteries, has caught the attention of not only Mr. Buffett but also many in the auto industry.
ELECTRIC AND HYBRID CARS
Electric cars (also known as electric vehicles or EVs) rely exclusively on battery power. With an all-electric EV there is no internal combustion engine, muffler, gasoline tank, air and fuel filters, and other parts needed to run a gasoline powered system. The vehicle itself also produces no tailpipe emissions, and by getting its power from an efficient utility company, overall, it produces fewer greenhouse gases. This is especially true if the electricity is produced with nuclear power, clean coal, or natural gas. EVs are also less expensive to fuel on a per mile basis. Electric cars, however, have a shorter driving range and are difficult to operate with long distance travel.
There are also some safety concerns associated with using a lithium-ion battery, as lithium is a highly reactive material prone to explosion
Note: Go to the company website and answer the above questions. This is just an advice. You may surf net , company report, Saudi vision 2030 to answer the questions.
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