Dyson enters the fray: The BBC reports that Sir James Dyson, the billionaire inventor of the bagless vacuum cleaner, announced Tuesday that his company is investing £2 billion ($2.7 billion) to develop and build a "radical and different" electric car. Dyson said £1 billion will be spent on developing the car, which is set to hit the streets in 2020, with the other £1 billion on making the battery.
Dyson said his company has been working on the project for two years with 400 employees, according to press accounts.
- Why it matters: The decision to go public with the firm's $2.7 billion decision to enter the electric vehicle tech field is another sign that entrepreneurs see a major growth market, especially as a number of countries are rolling out new policies to begin moving away from cars powered by fossil fuels.
- Be smart: "Dyson knows a lot about motors, batteries and consumer tastes, and has enviable R&D capability. Certainly not the craziest hat in the ring," said Bloomberg New Energy Finance EV analyst Colin McKerracher on Twitter.
Tesla's growth: Morgan Stanley analyst Adam Jonas, a longtime optimist about Tesla's potential, is out with a new forecast predicting that the number of Tesla cars on the road worldwide will be 300,000 by year's end, and will grow to 531,000 by the end of 2018.
Then? Up, up, up, reaching nearly 32 million units on the road in 2040 (including cars used in ride-sharing services). "It has been generations since the investment community witnessed such a high growth rate in the population of a single auto firm," Jonas writes.
- Yes, but: Morgan Stanley notes that Tesla's fortunes are subject to forces including the price of oil and other commodities and continued capital market willingness to fund its ambitions.
Big picture: Reuters notes that Wall Street is weighing the bullish Morgan Stanley forecast against Dyson's announcement that it's entering the EV market, heralding a new competitor for Elon Musk.
- "Shares of Tesla Inc...remained in a correction on Tuesday after a billionaire British inventor announced plans for his own electric vehicles, taking the shine off an analyst prediction that Tesla's cars would be commonplace within two years," they report.