The growing demand and affordability of electric-powered cars is heating up the market, making it attractive for traders and investors. As more of the world’s leading auto-making giants step into the EVs market, EV stocks may well become the ones to watch.
Electric car market boom
With new technological advancement and global concern about air pollution, electric cars are becoming ever more desirable, shifting the consumer focus away from internal combustion engine cars. Electric car manufacturers from all over the world are aggressively competing to develop superior electric cars, as the governments of India, China and the European Union are moving towards the ban of diesel and petrol engines.
To prove they are serious about their plans on EVs, General Motors announced the intention to go 100 percent electric. Volkswagen, which manufactures 300 vehicles worldwide, has expressed a desire to build an electric version of each car by 2030. Jaguar Land Rover and Volvo supports the idea to go purely electric or hybrid-electric, gradually transforming their fleets.
Still, the crucial component for the EV industry – cobalt – is in short supply. The electric vehicle market consumes 42% of the world’s cobalt production, while the remaining 58% is used in military gear and consumer products, including smartphones, cameras, laptops. Anything that requires a charger needs cobalt! The demand for cobalt shoots up, while the supply remains the same.
According to the US Geological Survey, cobalt production has been falling, and supply is slower than the growing EV industry demands. Most cobalt global production takes place in the Democratic Republic of Congo. The DRC has approximately 3.4 million tons of cobalt, which is almost half of the world’s overall resources. However, with new supply being discovered, the EV producing companies could expect a significant boost.
Global EV market’s forecast
In general, the electric car market looks to be promising in the foreseeable future. The strategic partnerships of EV infrastructure experts and improved cost effectiveness could ensure 2019 is a breakthrough year for EV market.
Today, Nordic countries – Norway, Sweden, Finland and Iceland – are leading the global EVs consumer market. As a result of a pro-EVs government policy and the removal of the 25% purchase tax, Norway became the EV market leader, with over 30% of their car stock being electric.
China has become another significant force in the electric vehicles market. With more than 1 million electric car sales in 2017, over half were made in China. Today, the country operates a larger EV market than the United States and Europe together. In the US and Canada, EV growth is driven by the release of Tesla Model 3, which topped the global sales of plug-in electric cars in 2019.
According to Total SA’s chief energy economist Joel Couse, electric cars could make up between 15% to 30% of the world’s new vehicle sales. The International Energy Agency has even doubled its EV forecast for 2030 from 23 to 58 million!
In 2018, the world’s electric vehicle fleet surpassed the mark of 5.1 million units, which is up by 2 million on the previous year.
Electric vehicles stocks set to crush the market
Speaking about the future of electric vehicles, we can't miss the chance to name the major electric vehicles companies moving the market forward.
General Motors (GM)
Often referred to as GM, the company has recently announced plans to close five of its production facilities in the United States, shutting down the production of 6 sedan models by the end of 2020. Instead, General Motors has a strong intention to double their investment in electric cars and self-driving vehicles.
A flagship of General Motors’ electric vehicles – Cadillac – features the GM’s brand new battery architecture that will potentially give a start to a family of profitable EVs.
Is the General Motors stock a “buy” or “sell” today? Let’s resort to the experts. According to the consensus opinion of 19 polled analysts, the General Motors electric car shares deserve a “buy” rating. The latest closing price for the GM stock is $36.87 as of 24 June 2019.
The company, whose name has become a synonym for luxury electric vehicles, continues to share ambitious plans to build 1 million electric cars in 2020. However, will the Tesla's growth trajectory continue in 2019?
Tesla ended up 2018 with record fourth-quarter figures: 90,700 cars delivered and 86,555 cars produced. In total, the company delivered 245,240 vehicles in 2018. In spite of all the difficulties, Tesla remains a survivor, winning on a number of fronts.
Speaking about the Tesla stock performance, analysts believe TSLA is a firm “buy”. The latest closing price for the Tesla’s stock is $223.23 as of 24 June 2019. The company’s all-time high is $385.00, which is 73.5% higher than the current share price.
By 2025, Volkswagen plans to roll out 3 million electric cars annually. The world's leading automaker is gradually reinventing itself as a key player in the electric vehicles market, announcing its plan to introduce 70 fully electric models in the next decade.
Volkswagen confirmed that its first quarter sales reached €60.012 billion, which is 3.24% higher than last year and surpasses the consensus forecast of €58.2 billion. The company’s CFO Frank Witter shares: "The Volkswagen Group is once again off to a good start this year. The sales revenue performance and earnings growth in the first three months of the current fiscal year are encouraging. But we have to continue to pick up the pace when it comes to our transformation."
The analysts’ latest consensus recommendation regarding the Volkswagen (VOW3) shares is “outperform”, which proves the company’s performance results. The latest price for the Volkswagen’s stock as of 24 June 2019 is €146.50.
Follow the VOW3, TSLA and GM stock prices in real-time and catch up with the outstanding opportunities to trade shares of the key players in the global EV market.