Everyone knows by now, traditional ICE vehicles are on their way out, fast driven to obsolescence by electric vehicles (EVs).
In fact, according to Needham’s clean tech analyst Vikram Bagri, EV adoption is “progressing faster than expected.” Realistically, this is not much of a shock considering the macro background.
“The fundamental landscape for EVs is more constructive than ever with elevated gas prices, government support, and improving availability,” Bagri noted. “Though we expect to see some near-term volatility as gas prices fluctuate, there is a regulatory and demand-driven path to EV adoption.”
By 2030, forecasts for EV penetration in the U.S. from IEA, BCG, and BNEF range between 44% and 53%. Individual OEMs expect a much speedier rate of adoption with many automakers setting their sets on 100% EV sales by 2030 or 2035.
Adoption brings plenty of opportunities for public companies operating in the space, and this translates to opportunities for investors.
Bagri and his team have been assessing the prospects of several EV makers and have separated – according to their view – the industry’s wheat from the chaff. Let’s take a closer look.
Fisker Inc. (FSR)
Elon Musk might be the world’s most famous EV entrepreneur, but Henrik Fisker is hoping to give Musk a run for his money. The Fisker co-founder (the company was formed with wife Geeta Gupta-Fisker) and CEO has an enviable record in the industry, having designed several luxury cars such as the Aston Martin DB9, BMW Z8, Aston Martin V8 Vantage, and the VLF Force 1 V10, amongst others.
Fisker has turned his focus to EVs. The start-up was founded in 2016 and Fisker plans to take share in the EV market by mass producing vehicles which are sustainably made in addition to being reliable and affordable.
The first vehicle off the production line will be the Fisker Ocean, an electric sport utility vehicle (SUV). SUVs account for around half of the passenger vehicles sold in the US and the EU, making the SUV market the biggest segment in the passenger vehicle category.