Are Electric Cars Really More Green?
This week we talk about whether electric vehicles are really better for the environment and about the decline of tech stocks.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends.
Hi Dieter! Electric vehicles have become some of the hottest stocks this year. Tesla might be the first company that comes to mind, but more traditional names like Ford, Volkswagen and General Motors are also embracing green cars.
Still, some may wonder whether battery-powered cars are better for the environment. After all, their manufacturing process also creates carbon-dioxide emissions.
To figure that out, The Wall Street Journal and researchers at the University of Toronto studied the environmental impact of two popular cars: a Tesla Model 3 and a gasoline-powered Toyota RAV4.Â
In manufacturing, the Tesla generated more carbon dioxide because of the metals needed for its lithium-ion battery. After 20,600 miles driven, the emissions from building and driving the two cars are about the same. The emissions of the Tesla vary depending on where it is charged because electricity can be produced using fossil fuels, natural gas or renewables.
But at 100,000 miles, the emissions of the RAV4 are 77% higher than the Model 3. At 200,000 miles, the gasoline-powered car has generated 78 tons of greenhouse-gas emissions.Â
That is more than double the emissions of the Tesla Model 3 at the same mileage. The data show that cars add to greenhouse-gas emissions no matter which engine they run on, but switching to electric vehicles can still help cut air pollution.Â
Electric vehicles could become even more environmentally friendly if the materials used to make their batteries come from recycling processes. The European Union has proposed a law that would require batteries to use a minimum share of recycled lithium and cobalt from 2030 onward.
Another thing I’m watching is how technology stocks are continuing to decline. Tech led the market rally that began in March last year, but now it is falling behind.Â
Some companies investors thought would gain during the pandemic included Zoom, Microsoft and Amazon. That has changed as more investors have put their money into economy-sensitive companies that are expected to benefit from the recovery, including oil-and-gas producers and banks.
Stocks ticked down on Tuesday as investors digested remarks from Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen, who said that they expect a strong economic rebound this year but that the U.S. recovery is far from over.
The yield on the 10-year Treasury note also fell for a third straight day on Tuesday. Yields on bonds fall as their prices rise. Investors are waiting to see what action the Federal Reserve will take. We’ll keep watching how the stock market adjusts to the economy.
Share your thoughts below, email us or catch us on Twitter. Your words could appear in our next edition! Have a great week and remember to wash your hands.👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music and skateboarding (but I suck). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy