In this video Steve Weiss and Brenda Vingiello join the ‘Halftime Report’ to discuss electric vehicles and how best to play that sector of the market.
Before 2010, there was no market for electric vehicles. However, in 2009 after the signing of the American Recovery and Reinvestment Act (ARRA), $2.4 billion was allocated to development of technology for electric vehicles. The ARRA is what sparked the beginning of the electric vehicle market. Without this act signed into law, the market for electric vehicles would not exist today.
The average stock for an EV company is $19.77 and has risen 55% in the last year. One cannot deny the fact that buying stocks for EVs, at this point of their creation, is a risky endeavor as it is still too early to tell if they will become mainstream or just another fad. Although the market for EVs is still small, it has potential to grow dramatically within the next few years as more and more companies are coming out with new models.
There were many who believed in this idea so much that they invested heavily in EV stock to try to reap the benefits of what could end up being a massive industry. Some of the more major players in this market include Tesla Motors and Nissan. One can invest in these companies through buying stock in them on public exchanges such as NASDAQ, NYSE, AMEX, OTCBB, etc. An individual who wants to invest in EVs can also buy mutual funds that are dedicated to EVs or index funds that have stakes in EV companies.