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- International (ENG)
The electric car industry is increasing its market share while petrol and diesel cars are losing market share. This is happening now and will continue until ‘traditional’ cars are replaced by newer, greener alternatives. This is just the start of a growing market that could pave the way for a greener future. Join us while we review the most popular electric car stocks and shares to watch currently. This information is up to date as of February 2021.
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As awareness of climate change increases and human behaviours transition, consumers may begin to shift their loyalty from internal combustion engines to electric and battery-based technologies. This shift in manufacture and purchasing could help reduce total emissions, thus, cleaning the air and resulting in greener societies. But are we ready for an electric car revolution?
In 2018, it was noted that there were over 5 million electric cars on the road in 2018, a 40% increase from 2017. With companies like Tesla leading the widespread adoption of electric vehicles, this figure is expected to consistently grow until electric cars become more common than cars using petrol and diesel. Many analysts have predicted that it will take around 20 years for this to happen, therefore placing an investment or trade in the right company could result in revolutionary growth in the future.
Data estimates that we have seen yearly growth in the adoption of electric vehicles by 46% to 69% since 2010. Thus, electric vehicles continue to eat away at the value of cars with combustible engines. In 2018, over 2% of the world’s passengers vehicles ran on electricity, so although the market is still in its early stages, there is potential for sharp growth.
No list of electric cars is complete without a reference to Tesla, the leading electric car provider. Tesla is headquartered in Palo Alto, California and led by its CEO, the famous Elon Musk. Tesla designs and manufactures electric cars and batteries, so it is a good way to invest in lithium. Additionally, Tesla is also involved in the solar panel and roof industry, further cementing its role in an environmentally friendly future.
Since its inception in 2003, Tesla has pioneered the electric car market and achieved the rank of the global leading producer of electric cars. Tesla’s Model 3 electric car currently ranks as the world’s best-selling electric car with more than over 499,550 sold in 2020 alone.
Tesla started 2021 with a share price of around $700.00 and an overall market cap of around $710bn. It is known to be one of the more volatile large-cap stocks.
Nio is a Chinese electric vehicle manufacturer founded in 2014 that is headquartered in Shanghai, China. It is sometimes referred to as the Tesla of China. Nio is in earlier phases of growth when compared to Tesla but has already experienced revenue increases of 146% between 2019 and 2020.
Nio saw its share price accelerate in 2020. Although it previously classified as a penny stock, it has risen substantially to a current price of around $52.00 and a market cap of $80.85bn. Although it can be perceived as a riskier bet when compared to Tesla due to the company’s size and infancy, Nio is still a highly innovative company that has the potential for large-scale future growth.
General Motors is an established car manufacturer that was founded in 1908 and is headquartered in Detroit, US. General Motors predominantly manufactures cars with combustible engines but has invested heavily in cleaner alternatives such as electric vehicles. General Motors produce a number of vehicles including all-electric cars, electric cars with a gasoline back-up and hybrid type cars.
Operating under Buick, Chevrolet, GMC and Cadillac, GM has a large market segment in the car industry and wishes to translate this into the emerging electric car segment. With electric cars such as the Chevrolet Bolt EV, which the first electric car capable of running over 200 miles on its battery, GM could be a strong bet on the future of the electric car market.
General Motors has seen its share price rise since the start of 2020 and currently sits at a share price of around $53.00. GM has a market cap of around $76.22bn.
Aptiv is a company that does not manufacture electric vehicle or batteries but instead focuses on electric vehicle architecture. Aptiv uses its expertise to make electric vehicles safer, greener and also more connected. Aptiv technologies operate in both the electric vehicle and autonomous driving sphere.
Aptiv has seen its share price rise since the start of 2020 and is currently priced at around $150.00 a share. Aptiv has a market cap of approximately $41.91bn.
Kandia Technologies Group is a Chinese company that specialises in the manufacturing of batteries and electric cars. Like Nio, Kandi is in its early stages of growth and only has a market cap of $546.45m. Until mid-2020, Kandi Technologies had a stock price of around $3-4, classifying it as a penny stock; however, since this date, it has risen to around $9 per share. This means that it could still be a highly speculative investment with large opportunities for growth and loss.
The electric car stocks mentioned in this article are available to buy and sell on the stock market for investors that want to hold positions in the long-term.
Alternatively, you can trade on the underlying price movements of these shares through spread bets and CFDs, which we offer on our Next Generation trading platform. This doesn't require you to take ownership of the asset and you are instead speculating that the price will either rise or fall. You can trade on individual shares or our associated share baskets, which allow you to diversify your portfolio with a basket of stocks. Read more about our Driverless Cars basket and our Renewable Energy basket.
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Disclaimer: ALFATRADING-MARKETS is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by ALFATRADING-MARKETS or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
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