The electric truck market has been slow to develop, even though manufacturers such as Volvo and Ford have rolled out electrified versions of their existing trucks in order to beef up their product lines. The result is that investors may be missing the big picture when it comes to the $350 billion trucking market, which is expected to switch to electric.
The issue is that the segment is extremely small. In fact, electric trucks have only been deployed in a couple of European countries and even within the US only in limited fleet usage at two different freight firms in Arkansas.
In order to tap into this huge market, investors should look to companies with strong potential in the electric vehicle industry. Yet investors may be missing a big opportunity in an industry still largely ignored by Wall Street because of a lack of interest from analysts and a lack of understanding of how the market will play out.
Investors should go beyond advanced transmission technologies and look for companies that stand to benefit from increased sales volumes for electrified models. There are also many other subtle opportunities investors can tap into as product development continues. Here are four overlooked areas that investors should be looking into.
Vehicle manufacturers continue to develop new batteries that can hold enough energy to power high-capacity vehicles that could help lead to greater sales in the electric truck market. This includes both current batteries and new technology being developed by start-ups.
But investors can’t forget about automakers that plan to play a key role in driving down costs for battery technology, such as BMW, which is working on its own lithium-ion battery system as well as an electric tractor.