Is It Time to Invest in Electric Vehicle Stocks?
Investing in the electric vehicle market is a tricky business. Indeed, it’s a thriving and growing business. But the worldwide implementation of electric vehicles is a process that will take tons of time. In some cases, time that investors can’t spare.
With that in mind, it has been recommended for people to wait until this market penetrates Europe and China. The two leading locations for the transportation business. But here’s the catch.
In 2021, Germany saw the number of electric vehicle registrations increasing by 83%. Not only that, but these numbers amounted to roughly 14% of all annual registrations in the country. So, is it finally time to invest in electric vehicle stocks?
The Transition to Electric Vehicles Is Finally Starting
If 2021 showed investors something, there’s a newfound demand for electric vehicles- a market that is higher than it has ever been. Just look at the following figures:
- In 2021, Tesla’s electric vehicle deliveries increased by roughly 100%.
- In the same year, BYD’s deliveries increased by roughly 200%.
- Likewise, Xpeng’s deliveries increased by roughly 250%.
- And finally, Nio’s deliveries increased by roughly 100%.
To give you a better picture, the global market share for electric vehicles stood at about 4% in 2020. Nowadays, it is expected to reach 34% by 2030. A decent timeframe for investors to wait for. But what does it all mean?
Overall, the electric vehicle market is showing signs of a promising future. But we’re just seeing the start of it all, meaning that it might serve for you to buy some stocks right now.
However, since this is the beginning, you shouldn’t come in expecting instant returns. On the contrary, you should enter it with a lot of patience. But rest assured, this patience will be rewarded in a few years.
If you’re currently expecting a little more gratification, we recommend investing in this market and then complementing your portfolio with some better-established stocks. That will take care of your needs.