Search Results
Working Paper
Investing in the Batteries and Vehicles of the Future: A View Through the Stock Market
A large number of companies operating in the EV and battery supply chain have listed on a major U.S. stock exchange in recent years. This paper investigates 1) how these companies’ stock returns are related to systematic risk factors that can explain movements in the stock market and 2) how these companies’ idiosyncratic returns are related to one another. To do so, I compile a unique data set of intradaily stock returns that spans the supply chain, including companies focused on the mining of battery and EV-related critical minerals, advanced battery technology, lithium-ion battery ...
Working Paper
Investing in the Batteries and Vehicles of the Future: A View Through the Stock Market
A large number of companies operating in the EV and battery supply chain have listed on a U.S. stock exchange in recent years. I compile a unique data set of high-frequency stock returns for those companies and investigate the extent to which an “industry” factor specific to the EV and battery supply chain (an “EV” factor) can explain their returns. Those returns are decomposed into systematic and idiosyncratic components, with the former given by a set of latent factors extracted from a large panel of stock returns using high-frequency principal components. It is found that a market ...
Working Paper
Charged and Almost Ready—What Is Holding Back the Resale Market for Battery Electric Vehicles?
We utilize vehicle registration microdata for all new and used vehicles registered in the U.S. for model years 2010-2022 to study the market for used battery electric vehicles (BEVs). From these records, we establish two stylized facts: 1) BEVs enter the used market at the slowest rate compared to any other powertrain technology, and 2) BEVs are driven significantly less than vehicles featuring other powertrain technologies. We connect these facts through a statistical model of used vehicle registration counts and find that there are significant behavioral differences between BEV and other ...
Working Paper
Auto Finance in the Electric Vehicle Transition
Financing cost differentials tilt the calculus for households toward electric vehicles (EVs). Using 85 million observations on U.S. auto loans, we study households’ credit risk by engine type, seek to uncover the sources and ask if credit risk differentials are being priced. We find that EV borrowers default 29% less relative to internal combustion engine vehicle (ICEV) borrowers with a back-of-the-envelope value of $1,457 in lender savings. To disentangle selection from expost exposure to differential costs of running an EV, we implement a differential shock exposure by treatment model of ...
Journal Article
Old oil fields reimagined as lithium sources
The Smackover Formation, extending broadly from East Texas to Florida, is ground zero in the effort to produce lithium from oilfield brines.