The first company many people think of when they think about electric vehicles is Tesla. It is the largest manufacturer of electric vehicles today, but that could be changing in the future as other manufacturers of traditional gasoline-powered vehicles enter the industry. A company like Volkswagen is a good example. It has focused its attention primarily on making their vehicles more fuel-efficient and meeting strict emissions standards in certain parts of the country. But now they are shifting their attention to producing electric vehicles. Many factors play a role in this decision by Volkswagen and other manufacturers, and those decisions spark new portfolio investment opportunities for investors.
Technological Hurdles Are No Longer Present
One of the major hurdles for companies producing electric vehicles was the available technology. Production of these vehicles is expensive, so the final price tag to the consumer has to reflect those expenses. However, with advanced technology allowing manufacturers to streamline processes and make the vehicles more attractive to consumers, it’s creating a win-win situation. Companies can make vehicles at a lower cost and put more innovative technology into the vehicles, and consumers can take advantage of the lower cost while still enjoying the features they desire.
Factors That Could Spark Mass Adoption Of Electric Vehicles
When you’re looking at investment strategies related to the electric vehicle industry, consider the components as well as the vehicle manufacturers. For example, one of the major reasons why experts believe the mass adoption of electric vehicles is likely due to the low cost of batteries. Another factor is the global attention on emissions and environmental-friendly initiatives that will only gain more attention. Experts believe an electric vehicle will be manufactured at a lower cost than traditional gasoline vehicles at some point this decade, which is likely the point when we will see a shift in vehicle sales in favor of electric cars.
When Could Electric Car Sales Surpass Traditional Vehicle Sales?
While there’s still a huge difference in the number of gasoline-powered vehicle sales and electric vehicle sales today, those numbers are expected to slowly trend the opposite way. Now is the time to look at your investment strategies closely to take advantage of the unique times we are in. Expert projections and models predict electric vehicle sales will surpass traditional vehicle sales by the year 2040, and it could be earlier than that depending on the industry-changing technological advancements that could arise between now and then.
One thing experts agree on is the electric vehicle market is just beginning to gain traction and it’s only a matter of time before it takes off. At Stock Investing Info, we use our financial knowledge to your advantage by examining the ins-and-outs of different industries to discover unique investment strategies for our clients. The electric vehicle industry is a trendy one to look at if you have any sort of interest in it. We can help you understand the trends and projections to help you make the best portfolio investment possible, so contact us today to see how we can help.