Which companies are well positioned for EV dominance?


The market for electric vehicles has grown significantly over the past few years, and it is expected to grow even more. Here are three companies that could dominate the electric vehicle race in the years to come: Tesla, Volkswagen and BMW.

The Paris Agreement signed in 2015 to reduce the carbon footprint in the world has led companies to put in place net-zero strategies. One of the markets that has experienced rapid growth is the electric vehicle market.

It is estimated that electric vehicles could sell better than gasoline-powered cars by 2040. Here are three companies to invest in to be well positioned in the race for electric vehicle domination: Tesla, Volkswagen and BMW.

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Tesla does not need to be introduced as it is the market leader in electric vehicles and its brand has gained worldwide recognition. Its electric vehicle market share in 2020 was 23%, and is expected to decline to 21% by 2025, with competitors battling for an electric vehicle market share.

Tesla’s share price rose 54.25% in 2021 despite the fact that Elon Musk, the CEO of the company, sold shares worth billions. He sold nearly 17 million shares in order to pay taxes next year. Additionally, he exercised all of the Tesla stock options in his trading plan.

One of the arguments against buying Tesla shares is that its valuation is sky-high. The company is trading at a Non-GAAP (TTM) P / E ratio above the industry median of 1,475.75%. But many investors are still willing to pay a premium price just to add EVs to their portfolio.

Not surprisingly, not everyone is bullish on Tesla shares. Of the 96 analysts covering the stock, 16 have issued sell notes while 38 have buy notes. 40 analysts issued neutral ratings.

Volkswagen

Volkswagen ranks second in the electric vehicle race, with an 11% market share in 2020, which is expected to increase to 12% by 2025. In addition, the company has announced ambitious plans and investments for the period to come, such as the construction of six battery factories. in Europe by the end of the decade. In addition, it plans to invest globally in charging stations.

On the contrary, it is a cash-rich company that will challenge Tesla’s supremacy in the electric vehicle market for years to come. Volkswagen’s share price is up 42.83% year-to-date.

Bmw

BMW is another German automaker investing heavily in the electric vehicle market. It is expected to reach 3% of the global electric vehicle market and its stock price is up 15.57% since the start of the year. In 2022, the company reached 1 million electric vehicle sales and intends to double that number by 2025.

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