Those who follow electric vehicle stocks in the market, or simply keep tabs on billionaire Elon Musk’s companies, probably remember when Tesla stock began to climb in August 2020 preceding a five-to-one split on Aug. 11. Shares continued to increase by 81% through late August of last year and have been hovering in the $700s post-split into 2021.
But Wedbush analyst Daniel Ives believes there’s more to EV stocks than Tesla. “I think right now it’s a big enough ocean for more than one boat,” he told CNBC’s Street Signs Europe.
The tech analyst predicted the EV industry will reach $5 trillion by the end of the decade, CNBC writes. That’s an ambitious projection, as Allied Market Research valued the global EV market at $162.34 billion in 2019, with a market projection of $802.81 billion by 2027. However, given that Tesla’s valuation now sits at $689.59 billion, Ives’ numbers could be on the money, so to speak.
With President Joe Biden’s emphasis on slowing or reversing climate change, the U.S. may see more incentives for the development and purchase of EVs and other sustainable technology. Biden has mentioned consumer tax credits to support the sale of EVs, as well as investments in the infrastructure required to support fleets of EVs on the streets, including a $400 billion investment that would support, among other things, the installation of 500,000 new EV charging outlets by the end of 2030, CNBC reports.
Other major players in the game include Chinese manufacturer NIO, Workhorse Group, and conventional internal combustion vehicle manufacturers who have developed or are developing electric vehicles, including General Motors.
Learn More: The True Cost of Going ElectricRead Next: 5 Questions To Ask Before Buying an Electric Vehicle
Goldman analysts also pointed to EV battery makers as companies to watch in the coming year, CNBC reports.
In addition to predicting that EV stocks could rise 40% to 50% this year, Ives is also bullish on Bitcoin. He told CNBC that he thinks 3% to 5% of U.S. corporations could follow Tesla to invest in Bitcoin or other crypto within the next year to 18 months.