Morgan Stanley | March 11, 2008 | Morgan Stanley Research

Plug-in Hybrids: The Next Automotive Revolution SUMMARY We believe Plug-in Hybrid Electric Vehicles (PHEV) have the potential to revolutionize the auto industry, over the next decade. This is because PHEVs could provide a cost-effective, practical solution to improving automotive fuel-economy and emissions. Plug-in hybrids are vehicles that are powered by an on-board engine and a battery / electric motor that can be charged by plugging into the electric grid. This gives PHEVs an extended 20 - 40 mile all-electric driving range vs. current hybrids plus the ability to drive long-distances like a regular car. We see lithium-ion PHEVs today, as akin to MP3 players in 1998. They are likely to revolutionize the automobile as we know it, but it is still unclear as to who will develop the equivalent of the iPod. Read Full Article