Not just Tesla: Tech analyst says electric vehicle stocks could soar 50% this year

Electric vehicle stocks could climb as much as 50% this year, in line with Wedbush analyst Daniel Ives, who thinks there’s sufficient room out there for greater than just Tesla.

“In my opinion EV stocks could be up another 40- 50% this year, given what we’re seeing in terms of a green tidal wave globally,” Ives informed CNBC’s “Street Signs Europe” Monday.

“I think right now it’s a big enough ocean for more than one boat,” stated Ives. “It’s not just going to be Tesla’s world.”

Ives stated he expects the electric vehicle business to develop right into a $5 trillion market over the following decade; in 2020, market analysis agency Fortune Business Insights valued it at round $250 billion.

He’s additionally bullish on the outlook for conventional automakers, in addition to pure electric vehicle makers like Tesla.

“This is really going to be what I believe is a renaissance of growth for these automakers and you’re going to see a re-rating,” he stated, pointing to General Motors and Ford.

And it is not just EV makers that analysts are bullish on. In a February notice, Goldman analysts pointed to six EV battery specialists with important potential upside.  

“This is one of the most transformational growth trends in the last 20 or 30 years in terms of EV, and many are going to play and win in this sector over the coming years,” Ives added.

One factor that at the moment units Tesla aside from different electric vehicle makers is the $1.5 billion it has put into the world’s best-known cryptocurrency, bitcoin.

Ives stated that Tesla is now “tied to the hip a bit” with bitcoin, however that is not essentially a foul factor.

“I think that’s a double-edged sword,” he stated in reference to the funding. “I still believe it’s a smart strategic move for Tesla to go after Bitcoin … They’ve made more from Bitcoin than they have from selling EV cars last year.”

Ives stated he thinks that between 3% and 5% of U.S. firms will personal bitcoin or one other cryptocurrency within the subsequent 12-18 months.

“It’s going to be contained until we start to see more regulatory goal posts, but this is not going away,” he stated, pointing to latest bitcoin investments from fintech agency Square and software program large MicroStrategy.