With more and more people accepting the Climate change reality, the EV industry has been flourishing across the financial markets. It is estimated that by 2027, the EV global market value will reach up to $802.81 billion.
The trend of “green cars” has been taking shape for some time, however, it has recently accelerated with some of the leading motor vehicle companies declaring they will replace traditional petrol vehicles with environmentally friendly EVs in the not-too-distant future.
People are getting more interest in buying the “green cars” as auto companies announced their plans to replace their common fuel cars with the EVs in near future.
The question is which company will take the lead in the EV industry to build a greener future?
We all know the One name Tesla (TSLA) which is the pioneer of EVs and they are doing very well in the stock market, even in the pandemic. But now there are not only one or two companies in this business. Most of the auto companies are already switching their vehicles from petrol to EVs such as Toyota, Honda, and even the luxury brands such as Jaguar Land Rover, which recently announced its plans to be fully electric by 2025.
But still, Tesla is the most favourite company in the EV business and the company become the world’s most valuable automaker by market value in 2020, crossing the $200 billion, pushing Toyota to 2nd position after a long time
A few years ago, nobody was interested in Tesla and its share price very hitting the lowest. No one was interested in their share prices but Tesla share price increased 700 per cent in the past year and become the 2nd most popular stock on the eToro platform last year. All this happened due to the invention of advanced technology, which the company introduced in its electric vehicles. Tesla 3 become the most popular model in the U.S and people booking their models in advanced despite late delivery times.
The EV business got a big push after the U.S president announced to move the entire US government fleet to electric vehicles. Companies are working hard to capture the market share in the EV industry and announcing different vehicles such as Tesla announced “Cybertruck”, following in the footsteps of other vehicle manufacturers such as GM, Rivian, and Ford (F), which are all bringing their own unique electric van solutions.
Being the number one position in the EV industry, Tesla is challenged by its Chinese rival Nio, which is the only company valued at $70 billion and it is threatening Tesla’s number one position.
General Motors (GM) also got big plans for electric vehicles as the company was able to develop its very own EV battery technology named Ultrium. The company has plans to introduced new EVs in the next few years at its facility, same as Tesla.
As more and more companies are investing in the EV industry, a new trend of ESG investing has emerged.
It stands for environment, social and governance. EGS investing is a strategy that requires researching and considering environmental, social, and governance issues.
Companies are doing more investment in EVs because now EVs are getting more common. There was a time when only a few people could afford them but now as more and more companies are making EVs, it is more becoming affordable and EVs are becoming a family car.