Russia-Ukraine Crisis Could Dampen EV Ambitions Of Tesla, Ford And Others: FT

Russia's attack on Ukraine has highlighted concerns about oil dependency and petrol prices just as EV manufacturers look to deliver a wide range of greener cars, Financial Times reports.
Ukraine is a significant producer of the miles of cables and connectors that power many cars' electrical systems. Russia's importance as the crucial rare earth minerals provider will be a significant headwind.
Read: Russia Impact - London Metal Exchange Suspends Nickel Trading After 250% Price Spike
An extraordinary surge in oil prices could prove to be a significant demand trigger for EVs. However, it could also cause a supply crisis.
The global semiconductor shortage and shipping delays have affected inventory levels. Additionally, crucial components for batteries have extended lead times.
Recently, Ford Motor Co F, Stellantis NV STLA, and Honda Motor Co Ltd HMC shared ambitious plans to speed up EV production. At the same time, Tesla Inc TSLA won permission to open a new battery factory in Europe.
Due to the supply crisis and longer waiting times, higher prices could also discourage the new EV buyers, FT notes.
There is also a possibility of a demand correction once the oil prices stabilize.
Price Action: TSLA shares traded higher by 2.38% at $844 in the premarket on the last check Wednesday.