J.P. Morgan Justin Nelson’s Perspective on Electric and Traditional Cars

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As the Managing Director and Head of the Asset Management and Financial Principals Coverage Team for J.P. Morgan Private Bank, Justin Nelson has a head for numbers. However, the dedicated Senior Private Banker is also a self-professed car aficionado. “I always liked cars,” he says. Nelson collected toy cars as a kid and remained obsessed with them as he grew up. He even bought and restored a 1967 Camaro that was owned by his family. “That set off my love of cars in general,” he explains.

While Nelson has always had a love for cars, he predicts that the boom in electric vehicles (EVs) has implications both for everyday consumers and financial institutions. In his experience as a wealth manager and leader of a 20-person team overseeing $15 billion in assets, it’s Nelson’s job to keep up with emerging trends and changes in consumption. He breaks down why the EV market holds so much potential and how it could rattle the foundations of the automotive industry.

Transitioning to an Electric Future

“I have a decent commute to work every day so I spend a lot of time driving,” Nelson says. “It’s a great time to listen to podcasts but also to enjoy some great scenery.”

Nelson will never knock the beauty of driving a car with a manual transmission, but it’s clear that consumers are looking for something different. For one, environmental concerns are encouraging more people to go electric. “Assuming we can add more renewable energy to the grid, it’s a great solution that also delivers great performance to the driver,” Nelson says. According to Marketwatch, EVs are a more eco-friendly alternative to traditional vehicles, making them a viable alternative to combat climate change.

However, the environment is just one factor. The increasing affordability of electric vehicles makes them more cost-effective for consumers. According to the NRDC, fueling an EV cost $485 a year versus $1,117 a year for a gas-powered vehicle in 2018. In 2023, EVs can be nearly five times more efficient per mile than traditional vehicles.

Justin Nelson’s Predictions for Electric Vehicles

Justin Nelson believes consumers’ environmental concerns and need for affordability will only increase the availability of EVs, making this an exciting avenue for investors looking for emerging markets. In the first quarter of 2024, EVs made up eight percent of car sales in the US — a steady increase from just 5.3% in Q1 of 2022.

Personally, Justin Nelson loves driving EVs because of their performance and innovation. “The technology they put into EVs are amazing – it should also make its way to ICE cars as well,” he says. “That being said, the acceleration and performance is pretty insane.”

However, he acknowledges that barriers to adoption remain. “I totally respect the fact that a transition here will take time, maybe 25-50 years,” he explains. Nelson believes that gas-powered cars will eventually go the way of manual transmission vehicles. “People will stop making manual transmission cars, where it’ll just be a small thing for collectors who enjoy that experience,” he adds.

Full Throttle Into Tomorrow

Traditional cars still make up the bulk of new vehicle sales in the US, but Justin Nelson believes the tides are turning. While he appreciates the quirks of classic cars, Nelson knows the innovation and efficiency of EVs will eventually win out. EV adoption will take time as infrastructure catches up to innovation, but Justin Nelson encourages both consumers and investors to keep an eye on EVs — they just might overtake gas-powered cars one day soon.

Sachin Wason