2 Energy Stocks You Can Buy Right Now to Play the EV Boom
I don't doubt that electric vehicles will replace gasoline-powered vehicles in time, but it's not clear what that means for investors. We don't know if Tesla's high margins are sustainable, or if they'll come back to industry norms over time. Start-ups like Rivian have compelling products but may not be able to ramp up before incumbents catch up. Then there's the charging business that's getting crazy valuations from investors before ever proving it can make money.
What we know is that electric vehicles will increase the consumption of electricity around the world compared to the status quo, and I think it's safe to say that EV owners are more likely to install solar, EV chargers, and even energy storage in their homes compared to non-EV owners. Given those facts, NextEra Energy (NYSE: NEE) and SunPower (NASDAQ: SPWR) are two companies with tailwinds from electric vehicles that could last for decades.
There are two ways for a utility to grow. One is for electricity demand to increase, and the other is from raising prices for electricity. EVs could help both for utilities like NextEra Energy.
Source Fool.com
