One of the most well-known times in stock market history is the “dot-com” bubble. The internet was still relatively new, as well as an investor frenzy pushed up the price of any stock that had nothing to do with it. The bubble eventually burst, and most of frantic stocks have since vanished.
A similar craze has occurred with electric vehicles (EVs); Rivian, an electric vehicle firm, may IPO at a higher valuation than the Ford Motor Company despite not having delivered a single unit! Electric vehicles, like the internet, are on the way, and some amazing firms are leading the way; here are 3 of them.
1. The leading electric vehicle firm
When the Model S debuted in 2012, the dominant electric vehicle firm Tesla led by Chief Executive Officer Elon Musk, brought electric cars into the mainstream discussion. Tesla’s deliveries grew from 22,442 in the year 2013 to 499,535 in the year 2020, and now the whole automobile industry is rushing to bring competitive electric cars to market.
With a projected 71 percent market share of the electric vehicles in the United States, the firm enjoys a huge first-mover advantage. Tesla models accounted for 79 percent of registrations of the new electric car in the United States in 2020.
Lordstown Motors, Rivian, and Lucid Motors are among the electric car companies that have entered the market, while legacy automakers are also adding EV models to their lines. However, many of these rivals must still show their worth, while Tesla continues to be the face of electric car technology. Until a competitor successfully grabs significant market share from them, it remains the smartest investment in a developing industry.
2. The most extensive charging network
Charging stations are a crucial part of the electric vehicle business that is sometimes overlooked. Tesla is well-known for investing in its charging infrastructure, but other automakers aren’t, putting EV owners in need of a charging network to fulfill their travel demands.
With more than 118,000 operational stations and seven times the market share of its nearest competitor, ChargePoint Holdings is the most dominant charging infrastructure in North America. More than 5,000 customers, including fleets, businesses, resorts, and residences, have chosen ChargePoint to offer EV charging to their locations.
There is a definite legislative push for electric cars, and firms are striving for ESG (social, environmental, and governance) norms, so consumers will continue to gravitate toward EVs. As ChargePoint’s charging network expands, this will immediately benefit the company’s software and service businesses, which will produce recurring revenue.
3. A potential battery industry disruptor
The engine is the heart of a gas-powered car, whereas the battery is the core of an electric vehicle. QuantumScape is a battery technology firm that is developing a new form of electric vehicle (EV) battery.
QuantumScape’s battery is the solid-state lithium-metal battery that is more energy-dense compared to the typical lithium-ion batteries and can easily be charged quicker and last longer, according to the business. QuantumScape also has over 200 patents and applications ongoing, offering it protection under the law if the battery proves to be as effective as it claims.
The battery, however, is still in development, making the business “pre-revenue” and a very riskier investment compared to the Tesla or ChargePoint. Furthermore, the battery’s commercialization is still some years away, with testing set to start in 2023 and a complete launch in 2025, according to management. Investors should be informed that QuantumScape does not currently have a commodity and that purchasing the stock is a risky bet that could pay off in the future.