Article wrote that according to the International Energy Agency (IEA), the prices of smaller electric vehicle (EV) models are expected to fall to levels comparable to those of combustion engine cars in North America and Europe by the mid-2020s, resulting in nearly one in five cars sold globally this year being electric. The IEA raised its forecast for EV sales due in part to the U.S. Inflation Reduction Act, which supports the green industry and subsidizes the purchase of EVs for consumers, IEA Executive Director Fatih Birol said.
In China, half of the EVs worldwide are on the road, including battery-electric cars and plug-in hybrids, and 60% of global EV sales occurred there last year. The report noted that electric car sales globally will jump 35% this year to 14 million, accounting for 18% of the passenger car market, up from only 4% in 2020. The IEA predicted that small and medium-sized EVs in North America and European markets would reach price parity with combustion engine equivalents in the mid-2020s, while larger cars like SUVs and pickups would achieve purchasing parity in the 2030s. Governments are investing in EV expansion to protect the environment, boost industrial policy, and reduce dependence on oil, which is expected to fall by 5 million barrels per day by 2030 due to the EV transition, Birol said.
Now everything I have read in that article seems like good news for EV sector. Especially, if the prediction for EV sales going up for 35% comes true. But to know for sure, I will have to wait. Meanwhile, one other company popped in my mind – Tesla. It seems that they also feel the pressure of competition already, as they decided to lower the prices of their models. And given that they are one of the biggest EV companies on the market, I decided to check their stocks and possibly invest in them.
Currently the price is at 160 USD, however it has been volatile in the past few months. For example, in April last year, the price was at 340 USD.* And the lowest point it hit was in January 2023, when the price hit 103 USD.* Based on all the info I have gathered, I decided to buy some stocks as soon as the market will open.
Performance of Tesla Inc stock over 5 years. Source: investing.com
* Past performance is no guarantee of future results.