The electric mobility industry has seen a rapid advancement in technology, largely as a result of the global prioritization of the reduction of emissions. This means, unequivocally, that would-be investors have a lucrative opportunity in e-mobility.
Plans to become carbon neutral over the next several decades are a topic that dominates the mission statements of almost every major automotive company worldwide, whether as part of the COP26 declaration on expediting the transition to 100% zero-emission vehicles and vans, or a standalone accord.
The sheer magnitude of investment and change that will occur over the next several decades will have societal-level consequences that will have a long-term impact on financial markets as the United States and other governments worldwide begin to put their visions for a cleaner future into action. The burgeoning wave of momentum will be difficult for investors to overlook.
The advancement of EV adoption will not be due to a single policy; there will be a need for a coordinated effort and aggressive deployment of existing solutions. The question of whether or not electric vehicle range solutions will be economically viable is heavily reliant on global standardisation and public-private partnerships. The technology is here, but whether we are prepared to embrace it remains to be seen.
Electric vehicles have been around for a while, but increased competition, rapid technological changes, and current government priorities indicate that the future of transportation is unquestionably electric. There are numerous ways for investors to gain access to electric vehicles and green transportation.
Direct investment in electric car makers’ stock is one strategy, as is taking a more indirect approach by purchasing stock in suppliers of essential materials or components.
One of the several exchange-traded funds currently offered may be of interest to investors who want diversified access to the electric car industry.
Some investors may prefer to purchase shares of pure-play electric vehicle manufacturers, whereas others may be keen on what the existing players are working on. Those interested in conducting their own research may be interested in the manufacturers of key components such as batteries and sensors and the materials used to make them. Those seeking a more diversified approach may wish to consider one of the targeted exchange-traded funds.
All things considered, there are plenty of opportunities for all types of investors when it comes to the future of mobility — electric vehicles and green transportation — irrespective of one’s investment style.
