The electrification of vehicles worldwide to reduce carbon emissions is driving demand for ancillary electric vehicle (EV) companies too. As such, we think Investors seeking to capitalize on the industry’s growth should consider a bet on QuantumScape (QS) and Romeo Power (RMO) because Wall Street analysts expect these stocks to deliver solid returns in the near term.The electric vehicle (EV) industry has immense growth potential because the world is gradually moving toward zero-emissions transportation. And investors’ interest in the EV space is evident in the Global X Autonomous & Electric Vehicles ETFs’ (DRIV) 101.8% returns over the past year versus the tech-heavy Nasdaq's 47.1% returns.
The growth of the EV industry is making the prospects bright for ancillary EV companies also. For example, because most EVs rely on lithium-ion batteries for power, companies involved in producing these batteries are well positioned to grow.
Given this industry’s promising prospects, sector analysts are highly optimistic about the near-term performance of QuantumScape Corporation (QS) and Romeo Power, Inc. (RMO). As such, we think it could be wise to scoop up these stocks now.