While there’s a significant amount of interest in electric vehicles, the action on the part of consumers purchasing them has been slow. Production and sales have been consistently climbing over the past decade, but we may be another decade away from electric car sales surpassing conventional vehicle sales. This doesn’t mean there aren’t any worthwhile investment opportunities in electric vehicles, though. The industry is slowly on the rise, which could mean now is the time to pursue them as a viable portfolio investment for you.

Promising Trends For Electric Vehicles

Around 2013, the popular electric car manufacturer Tesla produced roughly 20,000 vehicles. Fast forward to 2018 and Tesla produced about 192,000 electric vehicles. Not only is the significant increase in sales over the five-year period impressive on its own, but the fact that the electric vehicles were very expensive during that period says a lot as well. This upward trend combined with better technology, manufacturing costs and an improved overall cost structure is promising for the growth of the industry since the cost of the vehicles for consumers is expected to drop. 

Consider Investment Opportunities In Batteries And Components

An investor does not necessarily have to invest in electric car manufacturers to pursue investment opportunities in the industry. In fact, investing in the batteries and components that go into making the vehicles may be the better play. An example is investing in Panasonic, one of the major lithium battery manufacturers globally. Every electric vehicle manufacturer wants to have a unique aspect to set themselves apart from the competition, but a reliable and long-lasting battery must be the standard. 

Components for electric vehicles are also interesting plays. Some of the components include the connectors, charging ports, shielding and other power solutions needed. These components will continue evolving as technology advances and chances are the most innovative power solution has not yet been discovered. By investing in batteries and components, you’re making a long-term portfolio investment that should grow as more vehicle manufacturers enter the electric vehicle industry.

Diversify Your Portfolio With Electric Vehicles

When you’re looking at investment opportunities with electric vehicles, you don’t have to limit yourself. It may not be exciting to invest in lithium batteries, but it could arguably be the best long-term investment decision. You could diversify your portfolio even more by buying an exchange-traded fund (ETF), so you’ll have access to the industry as a whole without absorbing a significant amount of risk. There are plenty of ways you can play into the rise of electric vehicles, and you have the luxury of being able to start slow and find the niche you want to pursue more aggressively over time.

Stock Investing Info watches the electric vehicle market closely, among other global markets. We help investors understand everything from the stock market to interest rates, investing in ETFs to electric vehicle manufacturers and much more. Our goal is to help you create a diverse portfolio that fits your short-term and long-term financial goals. If you’d like to learn more about how electric vehicles may fit your portfolio, contact us at any time.

Leave a Reply