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ESG investing is the trend that will drive EVs efforts to replace ICE vehicles
Last year, we saw the resurgence of fossil fuel consumption awareness. There was also the emergence of Environmental, Social and Governance (ESG) investing. That even gained popularity on Wall Street, especially when BlackRock (NYSE:BLK) announced its commitment to the theme. This lit a fire under electric car stocks, and today we are going to focus on three that are up over 250% this year. This is at least eight time better than the red-hot Nasdaq.
This green energy movement puts pressure on the internal combustion engine (ICE) and gives electric vehicles, or EVs, a much needed jolt of energy. Today’s stock are the ones most likely to be winners for the long term.
EVs have existed for over a century but have failed to gain much traction until one company bullied its way onto the scene. Now they are all the rage, especially among investors. There is even a wave of special purpose acquisition companies — SPACs — gobbling up upstart EVs companies that are even pre-earnings.
The prevailing assumption has shifted, and now consensus is that we will all be driving EVs in the future. You can see it even in Hollywood — anytime there’s a story setting in the future, they are driving electric cars. The 2020 crash in oil prices put a little life back into ICE because it’s hard to justify a complete global shift away from gasoline when it’s so cheap. At $100 or $70 per barrel it’d be so much easier to argue for switching to electric vehicles.
Nevertheless, there are also moral reasons to make the switch, including saving the planet. I bet the push to alternative fuels will keep a bid under electric car stocks for a long while. This trend won’t unwind anytime soon.
By reading the names of two of our three stocks today you’d get the impression that this is a tribute to the physics phenom Nikola Tesla, but today is about EVs and the future of electric car stocks. Our three are already household names and the first is a clear leader and by a mile. The other two show great promise in different stages of their pursuit efforts. They are: