Nissan’s Big Gamble | Revenge of the Electric Car

Nissan’s Big Gamble | Revenge of the Electric Car: "Oil vs. electrons

Batteries are expensive. But Ghosn thinks rising oil prices will tilt the economics in favor of electrons. If crude oil rises above $80 a barrel, Nissan’s electric vehicles will be cheaper to own and operate than gasoline-powered cars, he says.

Crude trades for around $70 a barrel today. Analysts say that will rise as the global economy recovers.

Ghosn aims for Nissan’s electric cars, minus the battery, to cost as much as a standard car. Consumers will lease the battery at a cost that, including charging, will match what they would have paid for gasoline.

Chris Richter, an analyst with CLSA Asia-Pacific Markets, says, “If they can make good on Ghosn’s promise of a price comparable to a normal car, I think people will lap these up.”

Nissan hasn’t said how much it is spending on its electric ambitions. The first of the three models costs as much to develop as three normal cars, a person familiar with the situation says. The total investment in battery and car assembly at Smyrna is expected to exceed Nissan’s $1.6 billion loan from Washington, he says."