A major stock market opinion-maker has affirmed what Charged readers already know: EVs will inevitably replace old-fashioned international combustion engines, and Tesla Motors will be a major beneficiary of the shift.

“We believe that Tesla has already proven that EVs are inherently better, although most industry observers, and certainly the general public, don’t know it yet,” wrote Credit Suisse analysts Dan Galves and Shreyas Patil this week. “It’s almost inconceivable that a new automaker’s first offering would be called ‘one of the best vehicles in the world’ by many reputable auto reviewers, unless the base technology was just better.”

Saying that the fight between EVs and ICEs “will not be a fair one,” the report lists several reasons why electrons are better:

The Model S can reach power instantly because electric motors lack ICEs’ torque curves.

ICEs have a higher center of gravity because of their engines, and do not handle as well. EVs are also more conducive to all-wheel drive, as there’s more room for a drive unit.

EVs are roomier, because there are fewer overall parts. A Tesla powertrain has 18 moving parts. An ICE powertrain has hundreds, maybe thousands.

Because there are fewer parts, an EV enjoys lower maintenance costs.

Internal combustion engines now face “very challenging” fuel economy regulations, and a diffuse set of manufacturing needs.

Galves and Patil calculate that a Model S saves between $1,400 and $2,500 a year in fuel costs compared to a mid-size luxury sedan. And once Tesla’s Gigafactory comes on-line, costs will come down. Meanwhile, the cost of ICE powertrains will rise due to stricter fuel economy regulations.

RELATED NEWS: News outlets report Model S reliability issues, Tesla raises warranty

The two believe that range is only a temporary limitation, as Tesla’s Supercharger network continues to expand.

“If Tesla can get to cost parity with an inherently better product, they will maintain the pricing power they currently enjoy,” they conclude.

Credit Suisse rates TSLA shares “outperform,” with a $325 price target.

Source: Business Insider

Image: hans-johnson/Flickr