The electric vehicle (EV) boom is widely expected to continue in 2021 and beyond, especially after President Biden committed to spend a staggering $174 billion to lift the EV market. Several state governments have also provided subsidies for EVs. This is because EVs are environment-friendly, responsible for lesser noise and have a low maintenance cost.
Several countries this year have pledged to reduce carbon emissions. Companies like Amazon and salesforce.com are also aiming to be carbon-neutral soon. Needless to say, companies can easily lower emissions by electrifying their fleet. FedEx, in particular, mentioned that electrifying its fleet will largely help the company reach carbon neutrality by 2040.
Thus, with several companies aiming to reach carbon neutrality in the near term, the demand for EVs is soaring at the moment. In fact, notable traditional carmakers have now joined the EV bandwagon. For instance, players like General Motors Company (
GM Quick Quote GM - Free Report) , Ford Motor Company ( F Quick Quote F - Free Report) and Volkswagen have now started to venture into the EV market.
Ford’s F-150 EV is the latest to have an impact on the auto industry. Similarly, General Motors and Volkswagen are set to launch new battery-electric vehicles in the near future. By the way, EV battery sales increased handsomely in the first four months of the year, buoying companies like Tesla, Inc. (
TSLA Quick Quote TSLA - Free Report) and Nikola. Apart from this, wireless charging mechanisms coupled with turbo-charges for EVs are having an overall positive impact on the EV market.
In fact, the EV market is now well-poised to expand, and as per Facts and Factors, citing a
globenewswire article, the global EV market is projected to touch $700 billion by 2026, at a CAGR of 22% from 2021 to 2026. Additionally, another globenewswire article stated that Market Research Future expects the global EV market to see a CAGR of 21.6% from 2021 to touch $893.5 billion by 2027.
What’s more, the
Boston Consulting Group already projected that EVs will more or less account for a third of the global auto industry by 2025, and more than 50% by 2030, easily surpassing sales of internal combustion engine (ICE) companies. 3 Electric Vehicle Stocks That Could Keep Gaining
From rising concerns about CO2 emission, encouraging government policies to considerable investments by EV manufacturers, the global EV market is well-positioned to expand in the near future. An increase in initiatives to provide charging facilities in many areas and active involvement by original equipment manufacturers (OEM) in the EV space should contribute toward its growth trends. We have, thus, highlighted three solid EV stocks that are well-positioned to gain from this growing industry.
Tesla has played a pivotal role in transforming the EV market, the same way Amazon did to the retail landscape. By selling EV cars, Tesla is actually compelling the world to rely more on sustainable energy. In the United States, Tesla is one of the dominant players in the EV space and has made sure that EVs are now available for all and not just the affluent.
Tesla currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 92.9%. For the next five-year period, shares of Tesla are expected to gain 37.5%.
General Motors is now spending billions of dollars on EV vehicles to establish itself as a dominant player in the EV market. Citing a Barron’s article, General Motors is aiming to spend $35 billion on EVs during the period 2021 to 2025. The article further noted that General Motors aims to sell 1 million EVs each year by 2025. In fact, General Motors aspires to be an all-EV seller by 2035.
General Motors currently has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has moved up 7.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 11.6%. For the next five-year period, shares of General Motors are expected to gain 9.9%. You can see
the complete list of today’s Zacks #1 Rank stocks here. Ford, in the meantime, has also raised its spending on EVs. Citing one of the abcnews articles, Ford declared that its Lincoln luxury brand would be electric by 2030.
Ford currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 6.3% over the past 30 days. The company’s expected earnings growth rate for the current year is 146.3%. For the next five-year period, shares of Ford are expected to gain 21.8%.
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