TM - Three Stocks That Fuel EV Development
Many electric vehicles will make their debut over the next 24 months. It will still take time for EVs to entirely replace their gasoline counterparts. However, the pace at which battery technology gets developed can greatly speed up the adoption as it is aimed at making their price much more affordable. EVs need an infrastructure and a lower price tag to become a truly valid replacement. But there are three players which can resolve this barrier.
Reducing the cost of critical components – Aptiv
Aptiv (NYSE:APTV) doesn’t make electric cars but supplies the EV industry with critical components. Its E-Mobility division includes high-voltage electrical connectors and wires, charging cables, active cooling systems to monitor and dissipate heat generated by high-voltage charging, and electrical safety systems. Its stock hasn’t recovered since the March lows, but the enthusiasm for its products should bounce back with the recovery of EVs that were far less hit by the pandemic than the traditional automotive industry.
Reducing the cost of batteries- Panasonic
Panasonic Corporation (OTC:PCRFY) was also hit hard during the pandemic and it is still on the road to recovery. The key to the electric is found in batteries. Panasonic is the leader when it comes to production of batteries that hybrids, plug-in hybrids and all-electric vehicles need.
Both Tesla (NASDAQ: TSLA) and Toyota (NYSE:TM) have joined forces with Panasonic to manufacture batteries for their EVs. Panasonic reported the first quarterly profit from its Tesla battery business already in February. When economies of scale kick in, costs are expected to decrease and helping to improve that profitability.
Making complex technology affordable
Worksport Ltd (OTC: WKSP) is already established as an innovative manufacturer of affordable tonneau covers, the best-selling accessory of pickup trucks. But the company went even further with its TerraVis line that incorporates ground-breaking solar technology into its tonneau covers. It allows pickup truck drivers to generate and store energy providing power in remote conditions. Yesterday, the company announced it is in active negotiations to supply the TerraVis system to a U.S.-based Electric Truck manufacturer. The deal is expected with result revenues amounting to $70 million. The economic value of this relationship will have a profound impact on Worksport’s future growth. Moreover, the $70 million is just the beginning as the contract is likely to extend into the future.
Exceeding beyond limitations
While EVs are often portrayed as a key element of any zero-carbon future, but they are only one part of the puzzle. For them to be truly clean, the environmental footprint of the manufacturing process also needs to be green. Otherwise, they will just shift the emission from car to plant. This is why the above EV components play a great role at getting us to a zero-carbon future.
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