The 2010’s were the decade when the electric vehicle (EV) revolution got started.
At the start of the decade, electric vehicles were essentially non-existent. Over the course of the next ten years, several things happened, all of which sparked more widespread EV adoption. Global legislation started promoting EV purchases in an effort to combat carbon emissions. Infrastructure was built out to support EVs. Technology advanced to give EVs more range and power. Battery costs came down to make EVs more affordable. Consumers became increasingly aware of the adverse environmental impact of gas-powered cars, and similarly increased their uptake of EVs.
Net net, EVs went from non-existent at the start of the 2010’s, to over 2 million global deliveries in 2018, or over 2% of global auto deliveries.
This growth ramp is far from over. If the 2010’s were the decade when the EV revolution got started, the 2020’s will be the decade wherein the EV revolution goes mainstream.
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All the same tailwinds will remain in play. Global legislation will continue to incentivize EV adoption. Charging station infrastructure will continue to expand. EVs will continue to become more advanced with more range. Battery costs will continue to come down. Consumers will continue to pivot toward EVs as they become more and more concerned with reducing carbon emissions.
In other words, all the same tailwinds that started the EV revolution in the 2010’s, will sustain that revolution in the 2020’s. Considering EVs are ramping from a 2% penetration rate in 2018, the room for further growth here is tremendous. Indeed, IEA thinks that by 2030, global EV sales could measure anywhere between 20 million and 30 million cars, implying 10-fold to 15-fold growth from 2018.
That’s huge growth. Big enough to warrant buying and holding some EV stocks for the next decade. For the full story visit Investor Place.
