AUS
NZ
UK
CA
USA
IND
Highlights
- Major carmakers like Toyota, Honda, Hyundai, etc. are lagging in the switch to zero-emissions vehicles.
- At least 57.5% of global vehicle sales must be electric vehicles by 2030 to limit global heating to 1.5 degrees Celsius, as per IEA.
While a lot of carmakers have planned to switch to zero-emissions technology with the introduction of electric vehicles (EVs), only a few are actually making progress in that direction. Most carmakers are lagging in the adoption of battery-powered vehicles as they continue to sell diesel and petrol cars that are more profitable.
As per think tank InfluenceMap, only two carmakers, Tesla and Mercedes-Benz, are on the trajectory to hit the climate goals of limiting global heating to 1.5 degrees Celsius. While 100% of Tesla's vehicles produce zero emissions, Mercedes-Benz is on track to manufacture 56% battery-powered vehicles by 2029. On the other hand, companies like Toyota, Honda, Hyundai, Nissan, and General Motors are failing to keep pace with the shift to zero-emissions cars.
©2022 Kalkine Media®
Notably, calculations by the International Energy Agency, an intergovernmental organisation, stress that more than half (57.5%) of car sales across the world must be zero-emission vehicles by the year 2030 in order to restrict global heating to 1.5 degrees Celsius. This target was agreed upon at the Paris climate conference in 2015. The scientific consensus is that a huge part of the world will become unhabitable if the target isn't achieved.
With the shift to electric vehicles being seen as an extremely crucial step to keep the global heating in check, let us look at some FTSE-listed stocks that manufacture products related to electric vehicles.
Ceres Power Holdings Plc (LON: CWR)
The UK-based company specialises in electrochemical and fuel cell technology for electric vehicles. For the year to 31 December 2021, it posted a gross profit of £20.3 million.
The company holds a market capitalisation of £1,272.48 million and its share value has plunged by over 27% over the past one year. Ceres Power's shares were trading at GBX 685.58, up 2.58% at 8:21 am GMT+1 on 18 May 2022.
AFC Energy Plc (LON: AFC)
AFC Energy develops alkaline fuel cells that use hydrogen to generate clean energy. Its fuel cell systems are deployable in EV chargers as well as off-grid decentralised power systems.
The FTSE AIM 100 constituent has a current market cap of £190.25 million, and its shares traded at GBX 26.82 at 8:24 am GMT+1 on 18 May. The shares haven't performed particularly well over the past one year and have depreciated by more than 48%.
AMTE Power Plc (LON: AMTE)
The company develops Lithium-ion and sodium-ion battery cells and serves customers across automotive, aerospace, and defence segments.
AMTE Power's shares traded at GBX 78.80 at 8:09 am GMT+1 on 18 May 2022. It has a market capitalisation of £28.37 million, and its shares nosedived by over 71% over the past year.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
