Four stocks to plug into the electric vehicle revolution

Old-guard car manufacturers have joined Tesla, and more arrivals are around the corner.

Vikram Barhat 26 October, 2016 | 5:00PM

Transportation accounted for 26% of total greenhouse gas emissions in 2014 in the United States, making it the second largest contributor after electricity (30%), according to the most recent U.S. Environmental Protection Agency (EPA) report.

Given that nearly 95% of the world's transportation energy comes from gasoline and diesel, it's not surprising that the EPA and the National Highway Traffic Safety Administration (NHTSA) in the U.S. are pushing for emission and fuel efficiency rules projected to save consumers US$1.7 trillion in gas.

This has ushered the global automotive industry into a disruptive new era. Leading manufacturers are now rushing to capture the largest slice of the low-emission electric vehicles (EV) market, which Goldman Sachs expects to grow from about 1 million cars in 2015 to more than 25 million in 2025 when it will have become a US$244 billion industry. By 2025, electric vehicles -- hybrid and pure electric cars combined -- will represent 22% of all light vehicles worldwide, says the Goldman Sachs report. Projections like these have prompted some industry experts to suggest this could be the inflection point for the EV market before growth explodes.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Motors Co27.79 USD1.42
Nissan Motor Co Ltd ADR8.22 USD12.45
Tesla Inc820.23 USD0.17
Volkswagen AG ADR15.52 USD4.05

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.