EV Industry 2020 Report

Facing pollution across the world, governments in the developed and developing economies have put more focus on sustainable business. The automotive industry is no exception, where traditional gas-based vehicles have started to be overtaken by electric vehicles (EVs). These are expected to change the way we live and as such can provide viable long-term investment opportunities.

 

Over 2 million electric vehicles were sold in 2018, up from just a few thousand in 2010, and there is no sign of slowing down. We expect annual passenger EV sales to rise to 10 million in 2025, 28 million in 2030 and 56 million by 2040.

EV-industry-report

 

In longer term, things look even better as 2020 is barely the beginning of a huge trend towards conversion of traditional gas-based vehicles to EVs.

 

Whats included in the Report:

Global and Chinese Industry Outlook

Tesla and NIO company, market and stock evaluation

Key Insights and actions taken based on the evaluation

Key theoretical perspectives and positioning

The electric vehicles (EV) market has witnessed significant growth due to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicles demand. The EV market is coming up as an integral part of the automotive industry and represents a pathway towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gasses. Increasing environmental concerns coupled with favorable government initiatives are some of the major factors driving market growth. Rising energy cost and competition among emerging energy efficiency technologies is also expected to fuel market growth.

I. Industry Evaluation

  1. Global
  2. China

II. Key Industry Players Evaluation

  1. Corporate Profile – Tesla and NIO
  2. Market Share, Size, Performance and revenue
  3. Stock Evaluation
  4. Advantage and disadvantage of the industry
  5. Theoretical Perspective
  6. Evaluation and Positioning
  7. Key Predictions

This portion of stocks represents the growth engine of the investment portfolio during normal economic times. By normal economic times, we refer to the period of economic expansion (opposed to period of economic contraction, for which we had gold mining stocks) or the type of years we had from 2012-2019 – with higher inflation and decreasing interest rates to boost economic growth even further.

Given their cyclical nature, in times of market turbulence, these stocks are likely to take hits. These hits are then recovered and stocks are allowed to grow to new highs during new economic expansion.

The allocation percentage to EV(and other growth industries) can vary between 15%-55% depending on the lifecycle of the investor, risk tolerance, investment horizon and the investment objectives.