Electric car makers became market darlings in 2020, with stock prices skyrocketing, driven by the expected demand for cleaner cars.
Despite the significant growth in vehicle sales, 2021 was not a very positive year for stock prices. EV sales more than doubled this year alone, and Bloomberg predicts global sales to reach US $ 1 trillion by 2030. Conventional combustion engine vehicles account for 97% of total sales, and EV manufacturers have great growth potential. Still, the market capitalization of traditional car makers and EV makers is about the same, so the rise in EV ratings seems to be slowing down. That year, “Pure Play” EV makers launched new models, established car makers launched large-scale EV campaigns, and investors rewarded all companies in the sector. Tesla’s success is a brilliant example, with its value almost doubling and its market capitalization reaching just over $ 100 million.
According to the Bank of America, global EV adoption is ready to trigger a three-year IPO wave that could raise $ 100 billion by the end of 2023. The COP26 Climate Change Summit will shift to zero-emission new car and van sales globally by 2040 by states, automakers and others, and by 2035 in major markets.
Individually, electric vehicle manufacturers and industry supply chain operators are aware of the opportunity and are taking bold steps to secure some of the pie. The electric vehicle segment developed rapidly in 2021.
Japanese car giant Nissan plans to invest US $ 17.6 billion over the next five years to accelerate the electrification of its product lineup.
Sweden’s multinational Volvo Cars will become an all-electric vehicle manufacturer by 2030, and fully electric vehicles will account for at least 50% of the German multinational BMW Group’s shipments by the same year. Elsewhere in Germany, electric vehicle starter Sono Motors had an explosive success in a US IPO, with stock prices soaring from $ 15 to $ 38.50 on the first day.
Russian Automotive Inc., a US electric truck maker, has raised $ 13.7 billion in a US IPO, making it the largest IPO in 2021. Shares are up 47% from the offer price and the company boasts a market capital of $ 111.6 billion.
Ford has an ambitious goal of overtaking Tesla to become the world’s largest electric vehicle producer. American multinationals aim to triple the production of the all-electric Mustang Mach-E by 2023 to meet demand.
BYD Co., a Chinese car and battery maker, raised US $ 1.8 billion in a stake in Hong Kong, making its second transaction in 2021. Tesla continues to bet on China. China is expected to account for 40% of EV manufacturer deliveries in 2022.
The first vehicle of California startup Lucid Air boasts high performance and the longest range of electric vehicles. More than 17,000 bookings have been recorded on the Air Sedan, which is equivalent to a US $ 1.3 billion purchase order.
The electric vehicle market is booming and in 2022 China and the United States will compete for market power. Sales of internal combustion engines decreased due to an increase in EV sales this year. This ratio is steadily increasing and should reach just over 15% by 2025.
Currently, China’s market growth is much faster than the United States. According to the China Passenger Car Association, new energy vehicle shipments are expected to increase 121% year-on-year and market penetration is expected to reach 70% by 2030.
In this growing demand for electric vehicles, the global shortage of semiconductors continues to weigh on deliveries and purchases. Despite the current challenges, Chinese EV makers NIO, Xpeng and Li Auto are increasing their deliveries to the domestic market.
Despite the rapid growth of some well-known EV manufacturers, EVs will be a big and important investment category with many winners. Currently, the global electric vehicle market is projected to be US $ 80.81 billion by 2027, with a CAGR of 22.6%.
EMobility Certificate Swiss quotes According to Bloomberg, it targets electric vehicle manufacturers in the best locations to profit from market growth with global sales of US $ 100 million by 2030.