Electric vehicles have seen a steady uptake in both public appeal and adoption over the past decade; environmental, economic, and personal prestige are some of the main drivers for this surge in popularity. Brands such as Tesla are championing these drivers, being at the forefront of an emerging global trend.
In recent years Tesla has seen a rise in competitors moving into the electric vehicles space, as with the ever-increasing level of awareness surrounding the need to switch to electric vehicles, came far higher consumer willingness to make the change. Household names such as General Motors and Ford, as well as rising stars like ATLIS Motor Vehicles, NIO and Lucid Motors, are all making leaps in the electric vehicle space.
As well as investing directly in the companies which are manufacturing electric vehicles, the increased adoption and acceptance of electric vehicles, is opening up numerous potential areas for investment, that naturally ‘piggyback’ on any potential growth in the electric vehicle market.
Raw materials such as lithium and copper are essential in the manufacturing process of batteries and electrical components respectively, the latter being implemented in everything from wiring to inverters. Naturally, if the uptake of electric vehicles increases so will the need for components used in the manufacturing of the vehicles themselves, as well as those used in peripheral products such as charging stations and replacement battery packs.
This surge in innovation may create more investment opportunities in electric companies, with consumer sentiment trending toward greater electric vehicle adoption over the next 5-10 years as a forward-thinking way of fighting climate change and carbon pollution.
Legislative pressure from governments targeting ambitious environmental goals may create greater innovation from the industry big hitters as well as nimbler start-ups, as they attempt to grow their share of what they may perceive as an untapped market set to grow.
The global electric vehicle market was valued at $163.01 billion in 2020, and is projected to reach $823.75 billion by 2030, registering a CAGR of 18.2% from 2021 to 2030, according to a report from Allied Market Research.
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