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For years now, electric cars have been on everyone's lips and there are warnings about the moment when they will burst onto the market.
However, there are growing signs that the time has come, and sooner than expected.
General Motors announced in January that it would stop making gasoline- and diesel-powered combustion cars by 2035. This came after Volkswagen, Europe's largest automaker, unveiled its plan to invest $86 billion to develop electric vehicles, digital factories and autonomous cars over the next 5 years.
On the other hand, 2020 was the year in which investors' enthusiasm for electric vehicles skyrocketed Tesla's stock market value, which rose from $100 billion to $800 billion. As a result, it became worth more than the 9 largest traditional automakers combined. Tesla, which sold just under 500,000 cars last year, expects to post 50% annual sales growth.
Leading companies such as Volkswagen, which has invested heavily in electric vehicle production, and China's BYD are hot on its heels. In the future, companies that are quick to embrace structural change and adapt quickly will have a better chance of long-term success, whether they are automotive giants or emerging companies.
The International Energy Agency estimates that global sales of these cars will increase by 28% annually over the next decade. However, Kaitlyn Murphy, an equity investment analyst at Capital Group, writes in a recent report that these estimates may be "too conservative" given the tightening of global emissions regulations and the cheapening of EVs, which "makes them more attractive to consumers."
Today, electric vehicles are approaching a tipping point at which they will become cheaper than traditional cars, even without public subsidies. Hence the big moves that are being discounted by companies in the sector in the markets.
But, apart from Tesla, which is the best-known company in the stock market environment, there are other competitors, at least within this industry, which have also stood out in the stock market as is the case of NIO, Li auto, Blink, Nikola, Niu Technologies or Workhorse. Companies that have also developed a good bullish rally and that generate doubts about how much money you would have earned by investing 1,000 euros in these companies a year ago.
Read on to see the return you could have achieved.
NIO: you would have earned 11,940 euros.
NIO share price over the last year.
The first on the list to pay attention to is NIO. The Chinese company is one of the most prominent in the electric vehicle industry and proof of this is the rebound of its share price by more than 1,194% in the last year. A percentage that responds to the high expectations that the group has created for the future.
Thus, if you had invested 1,000 euros of your capital in the purchase of the company's shares, you would have 11,940 euros today. This is undoubtedly one of the most profitable bets of the past year on Wall Street as a whole.
Blink: you would have earned 11,194 euros.
This company doesn't have much or is a big name on the Nasdaq, despite its long run. The firm, a leader in electric vehicle charging equipment that has already deployed more than 23,000 stations, has rallied 1,194% in the last year. Therefore, if you had bet on this business, you would have pocketed significant amounts.
If you had bet 1,000 euros of your money on this company, you would have earned 11,940 euros today.
Li Auto: you would have won 420 euros
This company is the first to successfully market extended-range electric vehicles in China. It started series production of its first model, Li ONE, in November 2019. With this one, the company leverages its in-house technology to focus on smart technology and autonomous driving solutions.
The company has soared 42% in the last few, so if you had invested €1,000 in its shares today you would have earned a positive return of €420.
Nikola: you would have earned 281 euros
The electric truck company recently announced that it expects to record significant sales as it moves forward with the construction of a semi-trailer that runs entirely on electric batteries. The stock has rallied more than 28% over the past 365 days.
Thus, by spending €1,000 on the company's shares you would have managed to pocket €281.
Niu Technologies: you would have earned 2,290 euros.
This electric motorcycle company, based in Changzhou, China, was founded in 2014 and received $125 million in venture capital, following several rounds of funding, led GGV Capital. Since then its growth has been truly exponential on the trading floor.
So much so that the stock has taken off 392% in the last year. This means that if you had invested 1,000 euros in the company's shares you would have earned 2,290 euros.
Workhorse: you would have earned 4,999 euros.
This Cincinnati, Ohio-based company is in the business of manufacturing electric distribution and utility vehicles. Founded in 1998 by investors who took over the production of vans and chassis from General Motors' P30/P32 series motorhomes, it also represents a stock market success story. Its shares have appreciated by 599% in the last year.
Consequently, had you invested €1,000 in the asset 12 months ago, you would have achieved a return of €4,999 today.