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Highlight
- Much of Elon Musk’s net worth comes from his stock in EV manufacturer Tesla
- Governments are giving incentives to buyers to encourage adoption of battery-driven vehicles
- Incentives may no longer be available once a certain threshold of EV adoption is reached
Elon Musk is the richest person in the world, the first to ever cross the 300-billion-dollar milestone, but the fact that electric vehicles are at the heart of his wealth must entice people into considering buying an EV.
Musk is far ahead of competitors
Musk's closest competitor on the list is Amazon's Jeff Bezos, whose wealth emanates from Amazon, the e-commerce, cloud computing and AI company that has penetrated the lives of many. Tesla, too, is penetrating our lives in a similar fashion, but its user base is yet to come close to Amazon’s.
Is it the right time to invest in an Electric Vehicle?
And Tesla is not alone. Panasonic, LG Chem, Samsung and now all leading automakers are the stakeholders in the industry, which undeniably is on the top of the list of global investors. EVs are a leading priority for President Biden, who is aiming at a 50 per cent share of EVs in total vehicle sales by 2030.
Also read: 3 Canadian EV stocks that should be on your radar
Governments are incentivizing EV purchases
One of the key arguments behind adopting EVs today is that the many governments are promoting the industry. Once their adoption becomes large-scale, these tax incentives would no longer be available. GM and Tesla have both hit the target of selling 200,000 EVs and individuals purchasing these EVs now do not qualify for the US$7,500 tax credit in America.
Incentives are likely to be completely phased out once EV share in total sales exceeds 50 per cent. In Canada as well, point-of-sale incentives on purchase of an EV might get phased out with time.
And hence, if Musk's richest person tag that owes to EV doesn't entice you, these tax incentives should. Besides, lithium batteries are becoming an increasingly affordable alternative to fossil fuels, and clean energy is what we need to cut emissions and save our world. The reasons to buy an EV are all here, and they are compelling too. The returns of TSX Renewable Energy Index have also remained positive.
Also read: Algonquin & 2 other TSX clean energy stocks to buy before November
Bottom line
Electric vehicles are being adopted everywhere around the world. Most countries have tax and other incentives in place to encourage the adoption of battery-driven vehicles. These incentives are set to be phased out once large-scale adoption of EVs is reached.
So, it may be a wise decision to hop on the future trend now and avail benefits.
