5 Stocks To Crush The Market In 2019 On Electric Car Boom

Electric-powered cars are gaining popularity rapidly, propelled by their cutting-edge technology and growing affordability. As more auto giants step into the electric vehicles market space in order to keep investments flowing, the global electric cars fleet is bound to increase at a fast pace in the near future.

New laws passed with the aim to control pollution and technological advancement has made electric cars all the more desirable. In this time of shifting consumer taste and popularity from internal-combustion-engine-powered vehicles to electric-powered vehicles, it would be prudent to note a few major auto stocks that are investing in the electric vehicle space.

Electric Vehicles Market Set for High Growth

According to McKinsey’s Electric Vehicle (EV) Index, sales of electric vehicles worldwide crossed a million units for the first time in 2017. New regulations passed by governments globally, that include the United States and China, in a bid to control emission from gasoline-powered vehicles is a major reason for the rise in electric vehicles roll out. This is one of the aspects that could lead the global electric vehicles market to register high growth in the next five years.

The decrease in cost of lithium-ion batteries is a crucial factor that could make the jump from internal combustion engines (ICE) to electric vehicles easy. Lithium-ion battery costs have fallen 24% from its 2016 levels and are expected to slide as much as 90% by 2020. According to Tesla, Inc. (TSLA), this drop in battery costs will allow EVs and ICEs to have a comparable upfront purchase price.

In addition, the rise in battery capacity, the longevity of electric car battery packs, more reliability of EVs against ICEs by virtue of their mechanism and cheaper cost of electricity against fossil fuel are some of the tailwinds driving the electric vehicles market.

Being the world’s largest auto market, China is expected to emerge as the biggest market for electric vehicles globally. A major reason behind this development could be China’s increased global electric mobility.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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