Electric vehicles Energy

Cowen says prosperity in Electric vehicles would serve as a great benefit to these charging companies

Electric vehicles have been a source of plenty of attention recently. However, many investors seem to look for a significant change in these charging companies. Investors want to set up an infrastructure required to keep the production of these vehicles on the run. Investment bank started its coverage on the companies in the sector of electric vehicles. A statement in a note written by analyst Gabe Daoud says that many investors have flooded the field after seeing its potential to grow tremendously. Other factors flooding investors into the fields include developing valuable vehicles, strong units in the economy, and repetitive revenue.

The world seems to be evolving rapidly, especially in the energy and automotive sector, where the latter has fully entered into a period of massive disruption and many jobs generated. New automotive companies are overtaking the traditional ones, but the incumbent ones are also trying their best to be at par with others.

General Motors (GM)

General Motors appeared on the front line of many EC investors following its announcement to make a strategic alliance with Nikola, an electric-truck start-up. GM wants to make a full evolution to electric vehicles before they are late.GM has placed huge sums of resources behind their plan to help them achieve their EV goal. GM has developed new electric vehicle battery technology called Ultium and LG Chem, a Korean battery maker.

Rich Smith (Volkswagen)

Volkswagen is the largest car manufacturer in the world, having over 11 million cars underway production. It has 25% more vehicles and trucks than GM, and it produces 89% of vehicles than Ford. Volkswagen Company would benefit most from the forthcoming EV boom. The number of vehicles manufactured annually means a larger massive scale, which should help Volkswagen keep its vehicle costs cheaper. This year, Volkswagen invested about $2.3 billion into Chinese EV Manufacturers as part of its plan to sell 3 million EVs and trucks by 2025.

Lou Whiteman (Ford)

In 2019, Ford laid a blueprint for investing in an electric-truck start-up. The automaker stated that it plans to form a coalition with Rivian Automotive LLC, an Amazon. Com-backed Michigan firm. Ford wants to manufacture both an SUV and an electric pickup. The company made an investment of $500 million for a small stake in Rivian. The two companies are also making a new electric Ford vehicle while working under Rivian. Pickups serve as a great source of profit for the Ford company. However, not all investments produce fruits. For instance, in 2016, Ford acquired a Chariot commuter rideshare based in San Francisco to upgrade its nascent Ford Smart Mobility subsidiary. In 2019, Chariot was closed, forcing Ford to take charge of only $40 million.