4 Top Cleantech Stocks To Buy In December

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

The cleantech industry primarily includes solar, wind, biomass, hydropower, and other renewable energy sources. The sector has gained huge traction in recent years as countries across the globe are committing to reduce greenhouse gas emissions. As a result, the cleantech space has been consistently carrying out innovations to reduce costs and increase the efficiency of renewable energy.

Global leaders have been taking steps to move toward a carbon-neutral economy as climate change is becoming a major concern. Clean energy is expected to be one of the top priorities when Biden assumes office next month. The upcoming President has committed to ensuring that the American economy reaches net-zero emissions and runs on 100% clean energy by 2050. Consequently, the global clean energy technologies market is estimated to reach $452.8 billion by 2027, growing at a CAGR of 6.9% starting from 2020.

As a result, stock markets are significantly rewarding cleantech stocks lately. This is evident from the 36.7% gain by the Invesco Cleantech ETF (PZD) in the past six months, compared to SPDR S&P 500 ETF Trust’s (SPY) 17.5% return in the same period.

The exponential increase in demand for clean energy as an alternative source brings immense growth opportunities for the industry. Hence, companies like Tesla, Inc. (TSLA), Brookfield Renewable Partners (BEP), Bloom Energy Corporation (BE), and SunPower Corporation (SPWR) that are leaders in the cleantech space should continue to gain.

Tesla, Inc. (TSLA)

TSLA designs, develops, manufactures, and sells electric vehicles, electric vehicle powertrain components, and stationary energy storage systems in the United States, China, and internationally. It is the world’s only fully integrated sustainable energy company. The California based company has over 143 locations across the United States and operates through the following segments – Automotive, Energy Generation, and Storage.

The long-awaited addition of TSLA shares to the S&P 500 will take place on December 21, 2020, “all at once” in two tranches to ease integration. The company announced a new style of battery cell during its Battery Day held in September, allowing it to produce cells that are more energy-dense, safer, and reduce costs. Moreover, TSLA Energy is experiencing unprecedented growth for its new solar rental service for homeowners, essentially due to cheap solar subscriptions.

TSLA reported a top-line of $8.7 billion in the third quarter, growing 39% year-over-year, primarily driven by substantial growth in vehicle deliveries. The energy generation and storage segment generated $579 million in revenue, rising 44% year-over-year as the business reached record deployments of 759 MWh, compared to a quarter-ago value of 419 MWh.

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