Tesla (NASDAQ:TSLA) worked hard and it was not easy for it to rise to the top. Years behind with execution problems and criticism of its production, with many believing its stock could not get back to its highs. But Tesla certainly proved us wrong.
The company traded around the US$70 range for about three years until it finally started to soar, only to plummet with the crash. However, since then shares have skyrocketed. As of writing, shares are up an incredible 1,083% since the March 2020 market crash.
The biggest jump, of course, came in November 2020. That was due to the United States presidency officially moving over to Joe Biden’s administration. Biden’s administration promised a return to focusing on green initiatives, including electric vehicles (EV). Since then, the administration has promised more EV initiatives, including most recently replacing 650,000 federal vehicles with EVs.
The company continues to be ahead of the curve thanks to its innovative technology. It could be the first auto manufacturer to have a completely autonomous vehicle. Of course, this all makes shares in the company completely overvalued. So, what are other options investors can consider?
Think EV Related
EV Sales EV financing EV charging ( S2F2C) – that is the Ideanomics, Inc. (NASDAQ:IDEX) business model. The company has two primary divisions – the Mobile Energy Global (MEG) division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing and energy management solutions. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry. Or put another way – end to end electric vehicle (EV) solutions.
Hydrocarbon-based transportation services are not dead and are not going away anytime soon – there is literally a century of infrastructure investment in this market segment. But the beauty is that some of this infrastructure can also be utilized by the rapidly expanding EV market both in commercial and personal transportation. By providing a full sales-financing-charging service, the MEG division has found a niche in commercial transportation. Specializing in the facilitation of vehicle procurement, finance and leasing options and energy management solutions, Ideanomics provides full-service to commercial fleet operators. This allows these transportation specialists to do what they do best – move things without trying to figure out and dissect the latest and greatest (or worst) in the EV transportation sector.
The EV market was valued at $162.34 billion in 2019. Analysts predict it could be worth $802.81 billion by 2027 for a compound annual growth rate (CAGR) of 22.6%. For those companies that support this growth, it is clear a long-term hold would be a solid investment.