It’s no secret that consumer demand for electric vehicles (EVs) has been on the rise, but is it really a trend that’s here to stay?
LikeFolio data clearly shows that the answer to that question is yes and it also provides a compelling answer as to why.
While the government-led push for “greener” economies remains an idealistic but unrealistic motivator, there’s a much more down-to-earth reason for the recent surge in EV demand: Rising Gas prices.
Consumer mentions referencing concerns about gas prices have gained +663% on a year-over-year basis and aren’t shown any signs of pulling back, with fuel prices sitting at a record high level in the U.S.
Consumer mentions of purchasing an electric vehicle have rocketed higher as a result, currently sitting just below all-time highs, pacing at an enormous +69% QoQ and +245% YoY on a 90-day moving average.
Runaway demand, limited supply, and asset inflation are all combining to push EV prices higher.
According to a recent Bloomberg article, automakers are charging more for electric vehicles across the board, fueled by strong demand and rising costs.
Tesla is reportedly boosting prices by as much as $6,000 a car.
And one firm, according to CNBC, expects a sharp increase in demand for battery minerals over the next four years that could push the price of EV battery cells up by more than 20%.
Nevertheless, the substantial demand for electric vehicles remains, so which companies will capitalize?
Here are the EV stocks we are watching:
In terms of raw Demand growth, Rivian is clearly steaming ahead, with Purchase Intent Mentions trending at an impressive +322% YoY.
Rivian’s CFO Claire McDonough recently stated that the company has seen an “acceleration in demand,” adding that they “had 10,000 new pre-orders with a $93,000” average selling price.
With powerful underlying Mention growth backing the management teams’ bold claims, Rivian is undoubtedly one to watch.
Although Rivian boasts impressive year-over-year Purchase Intent mention growth, it’s not in the same league as Tesla (TSLA) when it comes to volume.
Tesla stands alone as the sole success story in the Electric Vehicle space. It’s also one of the most innovative companies in the whole world, so it’s no surprise that TSLA’s demand dwarfs that of both its up-and-coming and traditional peers, accounting for more than 75% of combined PI volume.
LikeFolio has been extremely bullish on Tesla since 2017, and based on the underlying Purchase Intent Mentions, trending +50% QoQ and +48% YoY, we’re maintaining our favorable outlook until the competition starts to close the distance.
As we noted in a recent bullish opportunity alert, Ford (F) is outpacing its legacy peers such as GM, Toyota, and Honda when it comes to electric vehicles.
Consumer demand growth for its fully electric F-150 ‘Lightning’ is outperforming that of top-dog Tesla’s electric pickup: Cybertruck.
Furthermore, demand growth for the regular, gas-powered version of the F-150 isn’t far behind the Cybertruck and is significantly outpacing that of the Tesla Model 3.
Ford is already a well-established and respected name in the auto industry…
LikeFolio data suggests the company is on its way to becoming a force in the EV space as well.
Although EV demand is surging, it’s important to remember that the electric vehicle market is still in its infancy.
Tesla recently proved that a company could have success selling electric vehicles.
Now, consumers’ interest has been piqued, and the race is on to find out who can wrestle market share away from Elon.
With LikeFolio data, we can identify the most promising opportunities of today and monitor them as the EV market continues to evolve.
It could take years for the next big EV winner to emerge, and you can bet we’ll be ahead of the market when they do!