Electromobility: Tesla & Lucid Motors as winners in the upswing - insights from a financial expert

Electromobility: Tesla & Lucid Motors as winners in the upswing - insights from a financial expert

Bern, October 23, 2023 – According to a forecast by S&P Global, one in four new vehicles will be electrically powered by 2030. Electromobility is currently experiencing a strong upswing, which is revolutionizing the automotive industry and could have a decisive impact on the stock markets. Shanna Strauss-Frank, financial expert at Freedom Finance Europe, provides insights into which industries and companies could benefit from this change. Particular attention is paid to Tesla and the up-and-coming US luxury manufacturer Lucid Motors. There are also significant opportunities in the areas of charging infrastructure and chip production for electric vehicles. There is also a strong upswing in the raw materials markets, especially lithium, due to the growing demand for batteries for electric cars. While some economic sectors are losing momentum, the electromobility market is increasingly becoming the focus of investors.

As Shanna Strauss-Frank points out, S&P Global plans that one in four new cars sold will be electric by 2030. In addition, from 2035, new cars that run on diesel or gasoline will no longer be allowed to be registered in the EU. This has already prompted some industry leaders to switch to producing electric cars, leaving traditional internal combustion engines behind. Tesla is considered the market leader in electric vehicles and has experienced a 16-fold increase in value over the last 13 years. Nevertheless, experts believe that the company's growth potential has not yet been exhausted. For example, Tesla plans to use technologies to produce large castings to significantly reduce costs in automobile production.

In addition to Tesla, the US luxury manufacturer Lucid Motors could also be interesting for investors. The company has announced plans to enter the Chinese car market, which is expected to increase sales and revenue in the long term. The growth prospects for Lucid Motors shares are promising, according to Strauss-Frank, as they are currently trading below the initial public offering price.

The market for electric charging stations is forecast to grow to $142.3 billion by 2030. Tesla is the most successful company in the US market and has the largest network of fast charging stations with 18,000 Superchargers in the USA. Electric cars from other manufacturers such as Ford, GM, Nissan, Honda, Mercedes-Benz and Rivian will soon be able to be connected to Tesla Superchargers, which would make Tesla the leader in the charging station market in the United States.

According to Morgan Stanley, the chip market for electric vehicles also has promising growth prospects. Jabil Inc., one of the most important chip manufacturing companies, was recently acquired by the Chinese company BYD. Experts expect technological breakthroughs and innovative solutions from this merger.

Another area that has been boosted by electric vehicles is the commodity markets. Particular attention is paid to the lithium deposits and facilities required for the production of batteries. Companies from Australia and Chile, the largest lithium producers in the world, could be interesting for investors. Albemarle, a US company, mines lithium in Chile and is considered a world leader. With a planned sales increase of 40 to 55 percent compared to the previous year and possible acquisition plans, Albemarle is strengthening its position as a leading company in lithium production.

While some economic sectors such as healthcare, energy and basic industries are losing steam, the electric vehicle market is gaining momentum and becoming the focus of investor attention.

Source: According to a report from www.moneycab.com,