Electric vehicle industry projected to grow, offering investment opportunities, especially for profitable manufacturers.

From Nasdaq Inc.: 2024-09-05 05:14:00

Despite lower than expected adoption rates, electric vehicles (EVs) represent a growing segment of the automobile industry, with nearly 1-in-5 vehicles sold in 2023 being electric. Consumer interest in EVs is declining due to range limitations and high costs, leading to poor performance of electric vehicle stocks.

The EV industry is projected to grow significantly, with sales estimated to reach 30 million in 2027 and 73 million in 2040. This growth presents an opportunity for unprofitable EV manufacturers to turn a profit, enticing investors with the potential for substantial returns.

Nikola, a manufacturer of class-8 battery-powered and hydrogen-powered tractors, has seen increasing sales and revenue growth. While the company is not yet profitable, analysts have set a price target over 150% higher than the current stock price, indicating potential for growth.

Rivian Automotive, a newcomer to the EV market, produces all-electric pickup trucks, SUVs, and delivery vans. With a focus on popular light trucks, Rivian is positioned to capitalize on the growing demand for larger electric vehicles.

Toyota, historically focused on traditional combustion-powered vehicles, is increasing its investment in EVs and hybrid vehicles. The company’s sales of EVs and hybrids have shown significant growth, leveraging its trusted brand name to attract consumers hesitant to purchase from newer EV manufacturers.



Read more at Nasdaq Inc.: 3 Electric Vehicle (EV) Stocks That Could Make You a Millionaire