The surging popularity of electric vehicles among the masses, bolstered by favorable government policies, has made Wall Street analysts highly optimistic about the industry’s growth. The U.S. government is stepping up its efforts to decarbonize vehicles by setting up long-term goals and addressing chip shortage barriers. Therefore, analysts expect lesser-known EV stocks REE Automotive (REE), Volta Inc. (VLTA), and Ideal Power Inc. (IPWR) to rally in the upcoming months.Electric vehicles (EVs) have been gaining traction since last year, amid growing climate change concerns and cost efficiencies. The U.S. government is pushing to make half of the cars sold be EVs by 2030 as part of its plans to phase out fuel-powered vehicles over the next few decades and tighten pollution rules regarding automobile emissions.
Moreover, countries worldwide have been trying to ramp up semiconductors production, which is crucial for EVs. The United States has allotted $52 billion to curtail the global chip shortage.
The global EV market is expected to grow at a 29% CAGR from 2021 to 2026. Thus, Wall Street analysts expect under-the-radar EV stocks REE Automotive Ltd. (REE), Volta Inc. (VLTA), and Ideal Power Inc. (IPWR) to witness substantial gains in the upcoming months.