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NextEra Energy (NEE) Arm Buys eIQ Mobility, Enters Mobility Space
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NextEra Energy’s (NEE - Free Report) arm NextEra Energy Resources, LLC has acquired Oakland CA-based eIQ Mobility to enter into the expanding market of electric or hydrogen mobility. To reduce transportation-related emissions, a transition is expected to take place in the United States in the next few decades, with fleets following passenger vehicles in this trend.
This acquisition will allow NextEra Energy Resources to assist customers identify economic operational and sustainable pathways for fleet vehicle conversions. It will be able to provide vehicle and energy analytics for fleets ranging from package delivery, auto manufacturing, technology services, and facility management to pharmaceutical and utilities industries.
Dropping EV Prices Aid
Courtesy of new technologies, the prices of battery and electronic vehicles (EVs) are dropping, making EVs more appealing to customers than conventional internal combustion engines vehicles. Telsa Inc. (TSLA - Free Report) has lowered the prices of EVs, which can further encourage U.S. customers to switch their vehicles. Many companies from different industries are planning to convert their existing fleet of cars to electric-driven ones and lower emissions.
In September 2020, Walmart (WMT - Free Report) announced that it will convert all vehicles, including long-haul trucks, to electric mode and lower emissions to zero by 2040. Many states of the United States are also focusing on developing the charging infrastructure that will assist in charging high-volume EVs that are likely to hit the roads in the next few decades. So, it is evident that EV demand for fleet conversion is on the rise.
NextEra Energy Resources will tap the benefits from the rising demand for fleet conversion. The company — through its acquired eIQ Mobility assets — will be able to provide fleets with a one-stop electrification solution, from vehicle selection and conversion planning to design and operation of resilient charging depots supported by clean energy.
Demand for Electricity
Rising adoption of EVs and its increasing usage in the United States will create fresh demand for electricity from the transportation sector. NextEra Energy will benefit from the latest acquisition as it marks its entry into the mobility market. Another utility, Xcel Energy (XEL - Free Report) is also poised to benefit from the increasing adoption of EVs across the United States and aims to power 1.5 million EVs across its service areas in the United States by 2030, which will aid the company in lowering emissions.
The stock has outperformed the industry in the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021. Click here for the 6 trades >>
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NextEra Energy (NEE) Arm Buys eIQ Mobility, Enters Mobility Space
NextEra Energy’s (NEE - Free Report) arm NextEra Energy Resources, LLC has acquired Oakland CA-based eIQ Mobility to enter into the expanding market of electric or hydrogen mobility. To reduce transportation-related emissions, a transition is expected to take place in the United States in the next few decades, with fleets following passenger vehicles in this trend.
This acquisition will allow NextEra Energy Resources to assist customers identify economic operational and sustainable pathways for fleet vehicle conversions. It will be able to provide vehicle and energy analytics for fleets ranging from package delivery, auto manufacturing, technology services, and facility management to pharmaceutical and utilities industries.
Dropping EV Prices Aid
Courtesy of new technologies, the prices of battery and electronic vehicles (EVs) are dropping, making EVs more appealing to customers than conventional internal combustion engines vehicles. Telsa Inc. (TSLA - Free Report) has lowered the prices of EVs, which can further encourage U.S. customers to switch their vehicles. Many companies from different industries are planning to convert their existing fleet of cars to electric-driven ones and lower emissions.
In September 2020, Walmart (WMT - Free Report) announced that it will convert all vehicles, including long-haul trucks, to electric mode and lower emissions to zero by 2040. Many states of the United States are also focusing on developing the charging infrastructure that will assist in charging high-volume EVs that are likely to hit the roads in the next few decades. So, it is evident that EV demand for fleet conversion is on the rise.
NextEra Energy Resources will tap the benefits from the rising demand for fleet conversion. The company — through its acquired eIQ Mobility assets — will be able to provide fleets with a one-stop electrification solution, from vehicle selection and conversion planning to design and operation of resilient charging depots supported by clean energy.
Demand for Electricity
Rising adoption of EVs and its increasing usage in the United States will create fresh demand for electricity from the transportation sector. NextEra Energy will benefit from the latest acquisition as it marks its entry into the mobility market. Another utility, Xcel Energy (XEL - Free Report) is also poised to benefit from the increasing adoption of EVs across the United States and aims to power 1.5 million EVs across its service areas in the United States by 2030, which will aid the company in lowering emissions.
Zacks Rank and Price Performance
NextEra Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has outperformed the industry in the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>