• Government support, improving cost economics, technological development and market sentiment are all shifting in favor of battery electric vehicles
  • All light vehicles could eventually be electric.
  • Tesla’s disruption has played a key role

There are four big reasons to be bullish on electric vehicles, according to Bernstein.

Government support, improving cost economics, technological development, and increasing acceptance of the powertrain by both customers and automakers all suggest the market is nearing an inflection point with the technology, said Bernstein analyst Toni Sacconaghi in a note sent Tuesday.

Right now, battery electric vehicles (BEVs) make up only a small portion of total vehicle sales, and critics say there are a number of limitations, such as limited charging infrastructure, and the relatively long time needed to charge a vehicle. For a long time, automakers seemed reluctant to invest in EVs, and customers did not seem terribly interested in buying them.

But the factors listed above appear to be turning that around.

First, government support has boomed. Countries are beginning to make pledges to phase out internal combustion cars entirely in the next few decades. Notably, the United Kingdom recently said it will ban the sale of all new gasoline and diesel cars starting in 2040. France has as well. Those countries account for 6 percent of all global auto sales, Sacconaghi said.

China, the world’s largest car market, is considering a similar move, but has not given an exact timetable.

Even countries without plans to ban gasoline cars outright have fuel efficiency standards that will increasingly put technical pressure on combustion engines. Japan, the European Union, the United States, Canada, China, South Korea, Mexico, Brazil, and India, collectively make up 80 percent of all auto sales around the world, and all have some kind of fuel efficiency regulation.

Read more: CNBC