With recent fluctuations as a direct result of Brexit, many have been hesitant to invest their hard-earned money on the automotive industry.
But with the recent changes in regulation been announced as well as the production of more efficient and affordable electronic vehicles this new decade can be the beginning of change.
In this article, we will be looking into whether or not investing in electronic vehicles is a worthwhile investment.
The current state of the automotive industry
The current state of the automotive industry is somewhat a mixed bag. On one hand, the production and sales of fuel-powered cars are decreasing whilst the sales in electric vehicles continue to increase. This, therefore, suggests that people are more willing to invest in fast-charging electric cars than the traditional cars that are available on the market. This has therefore led to shares in Tesla and other electric car manufacturers increasing along with the interest in new technologies increasing.
The ban on the sale of fuel-powered vehicles
This is an issue that has only be worsened by the announcement on Tuesday from the British Prime minister. This announcement outlined the banning of the sale new hybrid, petrol and diesel cars by as early as 2035. This is 5 years earlier than the original deadline and is seen as a huge push by the British government to decrease carbon emissions. This is no surprise to many as figures such as Greta Thunberg and David Attenborough work towards changing attitudes around climate change, however, many are wondering whether technological advancements are able to accommodate this sudden shift.
This is a step that many are excited to see as younger generations campaign to reverse the effects of climate change and work towards a greener planet, but with car sales already dwindling due to pricing in a tough economy, could this harm the industry as a whole. This comes after the automotive industry had already suffered as a result of Brexit uncertainty. This is evident in the number of car plants that are currently in talks of closing. One of the first to be affected by this is the Swindon Honda manufacturing plant that is set to close in 2021.
Investing in EV stock
Though there is speculation around the development of new electric vehicles to meet this carbon emissions deadline, this is great news for the EV sector and emerging companies. Though there are many that are already investing their money to buy Tesla shares, there are many others that are looking to begin investments in the EV industry. So, make sure to search for some top news about the Tesla share. With the development of electric vans receiving an order of £340m from UPS, this is set to revolutionise a number of industries and reduce the carbon footprint of the business. Therefore, it is the perfect time to begin investing, not only in the manufactures themselves but also in other parts of the business that provide the technology to power these new and emerging electric vehicles.
With a number of different companies collaborating on parts to make the next electric vehicle, investing in businesses such as Delphi, Aptiv and BorgWarner are worthwhile and stable investments. This is of a benefit to you as they are emerging companies at the forefront of design and microchips that make the electric car possible. In addition, now would be the perfect time to invest as the EV market is set to rise to at least 10 % of all cars sold by 2025, this figure, however, could change in light of recent event with many cars manufactures beginning to invest in this emerging industry. As a result of this increased investment, there is set to be a boom around the industry with new and creative ideas to create some of the world’s most efficient electric cars.
The future of the EV market
In addition to this 10% increase, we are also set to see a number of emerging manufacturers entering the market. With companies such as Polestar already emerging, there are set to be a number of strong contenders to rival Tesla, some that are existing such as Porsche and others such as Polestar that are branching out and creating new and exciting technology to help expand the industry. Whether you are currently driving an electric car, or you are looking to make the switch to an electric mode of transport, chances are you will be driving one by the year 2025.
The price of electric vehicles
One of the biggest reasons behind so many people not using electric cars at this time is the price. Though this is saving the environment with new and creative technologies, this also comes with a price tag. This is something that will need to be addressed by a number of these manufacturers in order to convince drivers to opt for the all-electric vehicle. However, with the development of government grants and other incentives, the affordability of vehicles such as this is are looking much more likely.
With this in mind, this is a promising time for this ever-expanding industry and more and more of us are becoming aware of our carbon emissions and are working towards a much greener future. Will you be opting for an electric car in the near future or are you planning on waiting to see where this industry will go?