Despite the ongoing global semiconductor chip shortage, government initiatives have helped the electric vehicle (EV) industry generate record sales in the third quarter. And because increasing investments are being made to address the chip shortage and ramp-up EV production, Wall Street expects the shares of EV manufacturers NIO (NIO), Li Auto (LI), Electric Last Mile Solutions (ELMS), and Electrameccanica (SOLO) to soar in price in the coming months. So, let’s drive by for a closer look at these companies.Favorable government policies to encourage the transition to a cleaner future, including tax credits for electric vehicle (EV) buyers (and rising oil prices), should speed the shift to EVs in the coming decades.
Despite the current global semiconductor chip shortage, some EV manufacturers witnessed record sales in the third quarter. Increasing investments to ramp up semiconductor production should further drive the EV industry’s growth. Investor optimism about this space is evidenced by the Global X Autonomous & Electric Vehicles ETF’s (DRIV) 16.6% gains, compared to the SPDR S&P 500 Trust ETF’s (SPY) 8.2% returns over the past month. The global EV market is expected to grow at a 15.4% CAGR to $187.94 billion by 2026.
Given this backdrop, Wall Street analysts are optimistic about the upside potential of shares of EV manufacturers NIO Inc. (NIO), Li Auto Inc. (LI), Electric Last Mile Solutions, Inc. (ELMS), and Electrameccanica Vehicles Corp. (NASDAQ:SOLO).