Things aren't the same as they were before when you had to head to the physical stock market, be puzzled at what's going on, and look to somehow get used to the tricks of the stock trade. The advent of technology in the form of advanced online trading platforms has made trading stocks online a reality.
Electric Cars, Concepts and Racing
The electric vehicle trend is heating up, influenced largely by various initiatives by automobile companies. Tesla Motors ($TSLA) has proved that electric cars can also be desirable. Nissan ($NSANY) has the Leaf electric car in its model range, General Motors ($GM) has come up with its Chevy Bolt, and electric power has been present for over 15 years in hybrid cars such as the Toyota ($TM) Prius.
What's more, there's now also a competitive electric motor racing championship called Formula E run by the FIA (Federation Internationale de l’Automobile - International Automobile Federation), with manufacturers such as Renault, DS Citroen, Mahindra, Audi, Jaguar and others supplying the electric motors and powertrains as well as running the teams. In addition, there is a host of other manufacturers looking to bring out electric models. Luxurious and high end British sports car manufacturer Bentley has also presented an electric concept at the Geneva Motor Show.
How Electric Is the Future?
The boom is there, but how deep is it and how big an investment opportunity is electric vehicle technology? According to the US Energy Information Administration, annual sales of EVs (electric vehicles) and plug-in EVs will reach 1.3 million by 2025, by which time there would be 7.5 million EVs plying on American roads. However, GTM Research states that there will be 11.4 million EVs on American roads by 2025. Bloomberg New Energy Finance extends the predictions to a much later year, saying that 35% of all vehicles sold will be electric in 2040. So if these reports are considered, there's some long term investment planning involved.
However, while we think of electric powertrains and their software, we hardly consider a very integral product of the electric automobile revolution - the chargers. Without chargers no electric car could run however sophisticated its technology may be. In fact, charging technology directly affects the rate of success of electric vehicles.
The Electric Automobile Charging Market
One of these leading charger manufacturers is Aerovironment ($AVAV). This company has forged partnerships with leading companies including Ford, Nissan and Volvo. Its technology has enabled it to offer attractive charging plans such as fast charging that takes just 10 minutes for 40 miles worth of charge. Its network is being set up on the West Coast. Sales for its charging product soared to $11.3 million, a 74% jump in its latest quarter.
But Aerovironment has competition. General Electric ($GE) has decided to enter the market and offers public charging options as well as home chargers. Being a comprehensive electricity component supplier gives it greater advantage since entering the automobile charging market is just enriching a field it's already familiar with. The risk is minimal, and GE's charger business could grow along with the electric car market's growth.
Tesla is the largest electric vehicle company, and it has developed its own charging infrastructure as well. It does sell most of its charging products to its own customers. It's a proprietary technology that Tesla follows.
Electric chargers do present a significant long term investment opportunity, and utilities are already getting interested in chargers as an opportunity for growth. For identifying more such growth opportunities you need to be in step with the market and think ahead of it. TradeZero's efficient trading platforms will give you a great view of the market and help you make the right decisions. Get in touch with us at +1 954-944-3885 or email firstname.lastname@example.org.
The content provided here is solely for informational and educational purposes and does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by TradeZero in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Investors are advised not to rely on the information contained in this writing to make an informed investment or financial decision. TradeZero explicitly disclaims all liability for any action taken based on any information contained in this writing.