March 19, 2019—Electric cars could take 3 million industry jobs in the next three to five years, CNBC reports. Morgan Stanley's Adam Jonas said electric vehicle production will result in workforce cuts as companies like Tesla become more mainstream.
“As auto companies shift production towards electric vehicles, we expect increased pressure on a 100-year-old auto ecosystem supporting millions of jobs globally representing a risk to labor relations, earnings and the balance sheet,” Jones said to CNBC.
Jonas discussed VW Group chief executive officer, Herbert Diess' recent statements saying electric vehicles take 30 percent less labor to produce an electric vehicle than a traditional vehicle, which Jonas says could lead to the loss of jobs for 3 million workers.
Additionally, Jonas told CNBC the number could increase as start-up brands like Tesla and Rivian could build electric vehicles at "50 percent reduction in direct labor or more." Jonas estimates the reduction could cost automakers upwards to $60 billions.
