(C) Reuters. 2 Electric Vehicle Manufacturers Wall Street Analysts Predict Will Gain More Than 80%
With President Biden’s proposal to invest $174 billion in electric vehicle (EV) development, the domestic EV industry could witness solid growth soon despite short-term hurdles such as a global semiconductor chip shortage. Supportive government policies and regulations worldwide should also contribute to the industry’s growth. As a result, Wall Street expects the shares of EV makers Fisker (FSR) and Electrameccanica (SOLO) to gain more than 80% over the next 12 months. Read on for details.After experiencing a slump on concerns over overvaluation and a semiconductor chip shortage, electric vehicle (EV) stocks are gradually regaining investors’ attention in-part because President Biden’s $174 billion spending pitch for EVs–as part of his $2.3 trillion infrastructure spending proposal–is expected to boost the industry’s growth.
Furthermore, the demand for EVs is expected to continue increasing in the United States because Biden’s proposed legislation would boost tax credits to as much as $12,500 for EVs that are assembled in the United States. These factors, together with increasing investments to address the semiconductor chip shortage, should boost the industry’s growth in the United States. As a matter of fact, the global EV market is expected to grow at a 33.6% CAGR between 2020 – 2027, to hit an aggregate $2.5 trillion, according to Meticulous Research.
Given this backdrop, Wall Street analysts expect Fisker Inc. (FSR) and Electrameccanica Vehicles Corp. (NASDAQ:SOLO) to gain more than 80% over the next 12 months.
2 Electric Vehicle Manufacturers Wall Street Analysts Predict Will Gain More Than 80%
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