Half Of All Cars Sold by 2030 Could Be Electric. Which EV Supplier Stocks Stand To Gain?

Half Of All Cars Sold by 2030 Could Be Electric. Which EV Supplier Stocks Stand To Gain?

Our theme of Electric Vehicle Supplier Stocks has fared well, rising by about 27% year-to-date, outperforming the S&P 500 which was up by about 21% over the same period. The theme was also up by about 77% since the end of 2019, compared to the S&P 500 which was up by roughly 41% over the same period. The transition to EVs is likely to gather pace, with President Joe Biden indicating that he wants half of all new car sales in the U. S. to be electric by the end of this decade. The move is also being backed by the largest U. S. automakers. This shift would give EV suppliers big room for growth, as electric vehicles accounted for just about 2% of all cars sold last year. Now, although competition in the component space is also likely to intensify considerably in the coming years as the EV market expands, companies in our theme should benefit from an early mover advantage. Within our theme, Albemarle, one of the largest producers of lithium which is used in EV batteries, has been the strongest performer, with its stock up by about 60% year-to-date driven by higher lithium prices and a faster