Europe faces ‘critical turning point' in EV shift: report
The report, shaped by expert researchers and stakeholders, warns that the shift to EVs 'requires a significant transformation of existing supply and value chains,' which will have deep repercussions on jobs, investment flows, and the EU's global competitiveness.
Europe stands at a 'critical turning point,' the authors argue, with consumer adoption still held back by 'insufficient charging infrastructure, high total cost of ownership, and limited consumer confidence', factors that are contributing to an ageing vehicle fleet across the continent.
The report paints a stark picture of the cost gap between supply and demand. CEPS analysts found that average battery-electric vehicle (BEV) prices would need to hover around €45,000 to sustain current manufacturer pricing structures, yet average consumer willingness to pay is 'only €20,000.'
That disconnect is compounded by the risk to European value-added content in vehicle manufacturing. Whereas internal combustion engine vehicles (ICEVs) typically retain 85–90% EU value-added content, this drops to just 70–75% for BEVs due to shifts in production processes and globalised supply chains.
'This transition,' the report notes, 'will also impact the types of labour and skills needed in the industry,' raising further concerns over potential job losses in ICEV-related manufacturing, even as new EV jobs emerge. Retraining and upskilling are seen as essential.
On the infrastructure front, the investment needs are striking. The EU will require an estimated €172 billion by 2030 to build out charging networks—but slow permitting and grid connection processes remain major bottlenecks.
Similarly, battery production, where Europe remains heavily reliant on China, demands around €42 billion in annual investment to build a competitive domestic supply chain, the report adds.
Without urgent action, CEPS warns, the EU risks falling behind in a global race for EV leadership. 'Establishing a sufficient supply chain and achieving manufacturing scale will be key,' the report concludes.
"Europe faces 'critical turning point' in EV shift: report" was originally created and published by Motor Finance Online, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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22 minutes ago
- Yahoo
Why Kratos (KTOS) Stock Is Trading Up Today
What Happened? Shares of aerospace and defense company Kratos (NASDAQ:KTOS) jumped 4.8% in the afternoon session after the company announced a partnership with Airbus to develop a European variant of its XQ-58A Valkyrie drone. The collaboration aimed to deliver a combat-ready version of the uncrewed combat aircraft for the German Air Force by 2029. The Valkyrie is a low-observable drone designed for long-range missions, capable of operating independently or in tandem with manned aircraft. Under the agreement, the flight-proven Valkyrie will be equipped with a mission system made by Airbus. The partnership was seen as a significant step for Kratos, positioning it to meet the urgent demand from European customers for advanced, uncrewed combat systems. The joint project also reinforced trans-Atlantic cooperation within NATO. After the initial pop the shares cooled down to $57.03, up 2.9% from previous close. Is now the time to buy Kratos? Access our full analysis report here, it's free. What Is The Market Telling Us Kratos's shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 3.1% on the news that the investment firm Cantor Fitzgerald reiterated its "Overweight" rating and $60 price target on the company. The firm's positive stance was based on the belief that the market was underestimating the growth potential of Kratos, especially concerning its X-58 drone program. Cantor Fitzgerald noted that while the drone market is competitive, the X-58 was well-positioned as military strategies shifted towards valuing attrition-lethality frameworks, which refers to the ability to sustain combat effectiveness despite losses. This analyst action followed other recent positive news for the defense technology company, including the U.S. Marine Corps' decision to move the XQ-58 Valkyrie drone into a Program of Record, which transitions it into production. Additionally, Noble Capital recently raised its price target on Kratos to $60, citing growth opportunities in both defense and commercial markets. Kratos is up 116% since the beginning of the year, and at $57.03 per share, it is trading close to its 52-week high of $59.12 from July 2025. Investors who bought $1,000 worth of Kratos's shares 5 years ago would now be looking at an investment worth $3,202. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
