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Biotech and pharmaceutical companies are seeing an unprecedented boom in 2020. The race for a novel coronavirus vaccine has lit a fuse under many stocks in that sector. Also seeing a boom this year are electric car stocks.
Mohammad Niamat Elahee, a professor in the Department of International Business at Quinnipiac University, writes:
“While electric vehicles are likely to increase their market shares significantly in the coming years, it will still take time for them to completely dislodge gasoline run cars. However, the pace of improvement in battery technology may make electric cars cheaper and its adoption faster than anticipated.”
The time is right for electric vehicles (EVs). Battery improvement means longer ranges, making EVs far more practical. Consumers are coming around to the lower cost of ownership through reduced fuel and service costs. EVs also have a major green component that’s increasingly a factor as climate change becomes a pressing issue. Jessika Trancik, an associate professor in energy studies at MIT, says:
“Roughly 90 percent of the personal vehicles on the road daily could be replaced by a low-cost electric vehicle available on the market today, even if the cars can only charge overnight, which would more than meet near-term U.S. climate targets for personal vehicle travel.”
With electric car companies in the spotlight, which are the electric car stocks to buy in order to take advantage of the EV boom? Here are seven picks:
- Tesla (NASDAQ:TSLA)
- Nikola (NASDAQ:NKLA)
- Nio (NYSE:NIO)
- Workhorse (NASDAQ:WKHS)
- Aptiv (NYSE:APTV)
- Panasonic Corporation (OTCMKTS:PCRFY)
- General Motors (NYSE:GM)
Some of these are pure electric car plays, some provide key components for EVs and one is at a crossroads.