The electric vehicle industry has been performing exceedingly well, and many brands in this sector have ended up being underrated. The best example is the Powershares Nasdaq 100 ETF (QQQ) and the iShares Russell 2000 ETF (IWM), which have been selling their stocks privately on a high value. This move has generated profits for the company for close to half a decade. The stakes are rising for the renewable energy industry, the latest performance being the introduction of cloud computing, E-commerce, and electric vehicles. These technologies have facilitated the growth of renewables and electric cars.
The electric vehicle industry’s growing stocks have opened new pathways for the public markets to enjoy the best products. The uptake of these vehicles is escalating because of the zero interest rates put forward by Fed. The pandemic has been stalling the recovery of the economy, with various businesses closing businesses. Investors who appreciate the conversion of growth to value have been skeptical of investing in other industries opting to cash in proposals and programs that will bring value while expanding.
Various companies that deal in electric vehicles have witnessed vast growth in this pandemic period, especially when people realized the change in air quality once the ICE cars stayed in parking lots and garages. Investors are investing in this industry because it has proved to possess the potential to increase value in the future.
Other industries that are gaining popularity include smartphone companies and cloud computing. The pandemic proved the essence of employees staying connected with companies holding various webinars and zoom meetings to discuss strategies. Companies have realized that this side of production can put them in an advantageous position in the market.
The IEA anticipates the electric vehicle industry to continue growing since it is at the explosive stage. The agency expects the market to grow by introducing more models to wipe out the ICE cars. It is estimated that the end of the coming two decades will witness a substitution of conventional vehicles with electric vehicles.
The controlling mechanism for electric vehicles is the development of batteries, which cover a high mileage range and have a fast accelerate torque. It is clear that this industry is one of those that begin with high prices for technology before becoming affordable with improvements. The election of Joe Biden as the US president will escalate the divulgence of incentives and subsidies meant to make these vehicles accessible.
Currently, Tesla and NIO are operating at the top level. The stocks of these two companies are controlling the market. The three models that have shown the potential to do well in the market are Li Auto (LI), Lordstown Motors (RIDE), and Fisker (FSR). Li Auto (LI) is a Chinese company that seeks to meet people’s needs in remote and rural areas. This company explained that installing charging facilities in rural areas would accelerate their uptake in these neglected areas. On the other hand hand, Lordstown Motors decided to go public by entering a SPAC deal. This contractual venture will help the company secure more capital for its projects.
Finally, Fisker entered a merger, which will cushion it against unfavorable competition giving it time to revive its operations. The company can now proceed with its design programs and other feasible projects.