Deutsche Bank has reportedly sent analysts to look at Project Better Place's business plan and concluded that it could be a "paradigm shift" that causes "massive disruption" to the auto industry.
"We see a potential for a paradigm shift in the way vehicles are owned and fueled," the analysts wrote in the report, which Wired News obtained from Project Better Place. "Looking at Better PLC's model, we conclude that a pure EV should not be more expensive than a gasoline/diesel vehicle."
According to the analysts, a typical contract would cost $550 a month and provide 18,000 miles a year. Project Better Place would run the charging infrastructure, allowing consumers to charge their batteries at home or at public charging stations.
Deutsche Bank found Project Better Place customers would pay 7 cents per mile for fuel, even after accounting for the cost of electricity and depreciation of the battery. That is very competitive when compared to the 24 cents per mile Europeans pay for gasoline and the 15 cents per mile Americans are paying (at $3 per gallon in a 20 mpg vehicle).
The report even goes so far as to say that Project Better Place's approach has "the potential to eliminate the gasoline engine altogether."
Deutsche Bank also predicts that "entities in 5-10 countries are in the pipeline to announce deals with Better PLC over the course of this year", in addition to deals already signed in Denmark and Israel. The bank also expects other automakers, beyond just Renault and Nissan, to work with the company.
"Frankly, we are not aware of any reason why they would not sign up for this, as the automakers do no need to commit capital for infrastructure of for batteries under Better PLC's business model," they wrote. "We think companies such as Better PLC have the potential to drive significant change in the global auto industry."
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