The Remarkable Evolution of the Electric Vehicle
Electric vehicles have undoubtedly gone mainstream, heralded as the answer to our environmental woes and the future of transportation. But while it might seem like a sudden, revolutionary breakthrough, EVs have actually been around for over a century. Their story is one of bursts of innovation, long stretches of stagnation, and then fresh surges in popularity thanks to a mix of technological advances and growing environmental awareness.
More recently, demand for electric vehicles has dropped dramatically, with their gasoline counterparts continuing to dominate the market – but the ultimate rise of the electric vehicle does still appear to be inevitable.
The origins of the electric car go back to the late 19th century when inventors like Thomas Edison and William Morrison were tinkering with electric-powered vehicles. While their prototypes were far from perfect—slow, heavy, and limited in range—they showed that electric cars had potential as a real alternative to gasoline engines. At that time, EVs competed head-to-head with steam and internal combustion engines, but it wasn’t long before gas-powered cars took the lead. They were lighter, faster, and, most importantly, they could go much further on a single refueling.
By the early 20th century, gasoline cars had a firm grip on the market. The rapid expansion of gas stations, coupled with assembly-line manufacturing pioneered by Henry Ford, made these cars cheaper and easier to fuel up, pushing EVs to the sidelines.
Even so, electric vehicles never completely disappeared. They resurfaced occasionally, especially during times of crisis. For example, the oil embargoes and energy shortages of the 1970s sparked a brief revival of interest, as did growing concerns about air pollution. But once again, the limitations of battery technology—big, heavy, and not very efficient—kept EVs from becoming a viable option for the average driver.
The real game-changer came in the early 2000s, when lithium-ion batteries hit the scene. These batteries were smaller, lighter, and could store more energy, making them a perfect fit for EVs. Suddenly, an electric car could drive hundreds of miles on a single charge and recharge in a matter of hours rather than days. This shift, combined with increasing public awareness of climate change and strong government incentives, brought EVs back into the mainstream conversation.
Gasoline Still Dominates the Road
Despite all the excitement surrounding electric vehicles, traditional gasoline-powered cars are still the kings of the road. As of 2023, internal combustion engine (ICE) vehicles account for around 90% of all passenger cars worldwide, leaving EVs with just about 10% of the market share. Even this 10% includes both battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which shows just how dominant gas-powered cars remain.
In some regions, EVs are making more progress. In Europe, for instance, they accounted for around 12% of new vehicle sales in 2022, while in the U.S., the number was a more modest 7.6%. Despite these gains, when you consider the 1.4 billion gasoline-powered cars still on the roads globally, the number of EVs—about 26 million—is just a tiny drop in the automotive bucket.
This continued dominance of gas-powered cars boils down to a few key factors. Gasoline cars are still cheaper upfront and more convenient, especially in areas with limited charging infrastructure. Additionally, the variety of available gasoline models—from tiny economy cars to massive SUVs—gives consumers more options at different price points and use cases. So while EVs are catching on, they still have a long way to go before they truly challenge the global footprint of gasoline cars.
In 2024, demand for EVs has slumped, highlighting just how much more work there is for the industry to do, but the rise of electric vehicles does ultimately seem inevitable.
A Look at the Road Ahead
Of course, any conversation about today’s electric cars inevitably leads to Tesla. Founded by Elon Musk, Tesla didn’t just make electric cars—they made them cool. By combining futuristic designs, high-tech interiors, and software updates that keep cars up-to-date long after they’ve been sold, Tesla changed the way people thought about EVs. Suddenly, an electric car wasn’t just a green choice—it was a status symbol. This sparked a wave of interest and pushed other automakers to scramble to develop their own electric models to keep pace.
Now, it seems like every major car manufacturer is jumping on the EV bandwagon. The increased competition has led to faster innovation and lower prices, making EVs more accessible to a broader audience. But challenges remain. A sparse charging network in many parts of the world, ongoing concerns about battery lifespan, and the environmental impact of producing and disposing of batteries are all issues that have to be overcome.
Despite these obstacles, the future of electric vehicles looks bright. Advances in battery technology continue to push the limits of range and charging speed, while governments are investing heavily in expanding charging infrastructure. Several countries have even set timelines for phasing out the sale of new gasoline-powered cars entirely.
While the rate of change remains uncertain, it’s clear that the EV market has reached a tipping point. As technology keeps pace with consumer expectations and infrastructure catches up to demand, electric cars are poised to become the new normal. Ultimately, this isn’t just about swapping one engine for another—it’s a fundamental shift in how we think about transportation and sustainability.
The electric car’s journey has been anything but smooth, but it feels like we’ve reached a pivotal moment. From early experiments to niche prototypes to the widespread adoption we’re starting to see today, EVs are set to reshape the way we move over the next century. And this time, they’re here to stay.
10 EV Stocks to Keep an Eye On
Tesla, Inc. (NASDAQ: TSLA)
Tesla’s impact on the automotive industry is undeniable. They’ve not only popularized electric vehicles but also pushed the boundaries of technology with features like Autopilot and Full Self-Driving, though the latter remains controversial and under scrutiny. Their Supercharger network provides a significant competitive advantage, offering convenient and fast charging for their customers. This vertical integration, controlling both the vehicle and the means to power it, is a key part of their strategy. Beyond cars, Tesla’s energy business, including solar panels, solar roofs, and battery storage (Powerwall), positions them as a leader in sustainable energy solutions for homes and businesses. However, competition is intensifying from both established automakers and EV startups. Tesla’s future hinges on their ability to maintain their technological edge, navigate production challenges, and expand into new markets while addressing concerns about vehicle safety and the promises of their autonomous driving technology.
Rivian Automotive, Inc. (NASDAQ: RIVN)
Rivian has carved out a unique space in the growing electric truck and SUV market. Their R1T truck and R1S SUV are designed for adventure, boasting impressive off-road capabilities, unique design features, and a focus on sustainability. Their “skateboard” platform, a flexible chassis that can underpin various vehicle types, is a key part of their strategy for future models. Backed by Amazon, Rivian has secured a major order for electric delivery vans, demonstrating their potential in the commercial vehicle sector. This provides a stable revenue stream while they ramp up consumer vehicle production. However, they face the challenge of scaling production to meet demand and competing with established truck manufacturers like Ford and GM, who have their own electric truck offerings. Rivian’s success hinges on their ability to execute their ambitious plans, manage production costs, and navigate the complexities of the automotive industry while appealing to both adventure-seekers and commercial fleet operators.
Lucid Group, Inc. (NASDAQ: LCID)
Lucid is aiming for the top end of the EV market, focusing on luxury and performance. Their Air sedan boasts incredible range, powerful electric motors, and luxurious interiors, rivaling even top-tier internal combustion engine vehicles from brands like Mercedes-Benz and BMW. Their focus on technology and in-house development of key components like their electric motors gives them tight control over their vehicles’ performance and efficiency. However, Lucid is a relatively new player with limited production capacity, and they need to prove they can scale production and achieve profitability while maintaining the high quality expected of luxury vehicles. The luxury EV market is becoming increasingly competitive, with established automakers like Mercedes-Benz and Audi introducing their own electric models. Lucid needs to maintain its edge in technology, performance, and brand appeal to succeed in this demanding segment.
NIO Inc. (NYSE: NIO)
NIO has emerged as a major player in the Chinese EV market, known for its premium electric SUVs with stylish designs and advanced technology features. Their innovative battery swapping technology allows users to quickly swap depleted batteries for fully charged ones at dedicated swapping stations, addressing range anxiety and offering a unique customer experience. This approach also allows NIO to offer battery subscription services, potentially lowering the upfront cost of their vehicles. NIO is also expanding into European markets, signaling its global ambitions. However, they face intense competition in China from both domestic and international EV makers. NIO’s success depends on their ability to continue innovating, expand their battery swapping infrastructure, and navigate the complexities of international expansion while maintaining a strong brand image and customer loyalty.
XPeng Inc. (NYSE: XPEV)
XPeng is another Chinese EV maker making waves with its focus on technology and autonomous driving features. Their vehicles offer advanced driver-assistance systems, including their XPILOT system, which provides features like lane keeping, adaptive cruise control, and automated parking. XPeng places a strong emphasis on connectivity and user experience, with sophisticated infotainment systems and over-the-air software updates. XPeng is expanding its product lineup and targeting younger demographics with its innovative approach and focus on technology. However, they face the same challenges as NIO, including intense competition in China and the need to expand globally. XPeng’s success will rely on their ability to differentiate themselves through technology, deliver on their autonomous driving promises, and capture market share in a rapidly growing but increasingly crowded market.
General Motors Company (NYSE: GM)
GM, a giant of the traditional automotive industry, is making a significant push into the EV space, leveraging its vast manufacturing expertise and brand recognition to compete in the mass market. With models like the Chevrolet Bolt EV and EUV, and upcoming electric trucks like the Silverado EV, Blazer EV, and Hummer EV, GM is electrifying its popular models to appeal to a wide range of customers. Their Ultium battery platform provides a flexible foundation for a wide range of EV models, from compact cars to heavy-duty trucks. However, GM needs to overcome its legacy image and convince consumers that it’s a serious EV contender, not just playing catch-up. The transition to EVs requires significant investments in new technology, production facilities, and charging infrastructure, as well as a shift in company culture. GM’s success in the EV market will depend on its ability to execute its electrification strategy, manage the transition effectively, and appeal to a new generation of EV buyers.
Ford Motor Company (NYSE: F)
Ford is another traditional automaker embracing the electric future, and they’re doing it with iconic models. The Mustang Mach-E, an electric SUV that evokes the spirit of the classic muscle car, has been a success, and the F-150 Lightning, an electric version of America’s best-selling pickup truck, is generating significant buzz. Ford is investing heavily in EV production and aims to become a major player in the electric truck market, where they have a strong legacy. However, they face the same challenges as GM in transitioning to an EV-focused company while maintaining its existing business. Ford needs to balance its legacy business with its EV ambitions, manage the complexities of the changing automotive landscape, and ensure that its electric offerings live up to the expectations set by its iconic brands.
Toyota Motor Corporation (NYSE: TM)
Toyota has been a leader in hybrid vehicles for years with its Prius model, but they’ve been relatively slow to embrace fully electric vehicles. However, they’re now ramping up their EV efforts with models like the bZ4X SUV, an all-electric crossover, and plans for a wider range of electric vehicles across its brands, including Lexus. Toyota’s renowned manufacturing expertise, global reach, and strong reputation for reliability give them a solid foundation for EV success. However, they need to catch up to competitors who have already established a strong presence in the EV market and overcome skepticism about their commitment to fully electric vehicles. Toyota’s success will depend on their ability to accelerate their EV development, introduce compelling electric models, and convince consumers that they’re serious about electrification.
QuantumScape Corporation (NYSE: QS)
QuantumScape is a high-risk, high-reward company developing solid-state batteries for EVs. Solid-state batteries have the potential to revolutionize the EV industry, offering significant improvements in energy density, charging time, and safety compared to current lithium-ion batteries. If successful, QuantumScape’s technology could enable EVs with longer range, faster charging times, and reduced fire risk. However, solid-state batteries are still in the development stage, and there’s no guarantee that QuantumScape will be able to mass-produce them at a commercially viable cost and overcome technical challenges related to durability and scalability. Investors are betting on the potential of this game-changing technology, but it’s a long-term play with significant uncertainty.
ChargePoint Holdings, Inc. (NYSE: CHPT)
ChargePoint is a leading provider of EV charging infrastructure, playing a crucial role in enabling the widespread adoption of electric vehicles. They operate a vast network of charging stations across North America and Europe, offering various charging solutions for homes, businesses, and public spaces. As EV sales grow, the demand for charging infrastructure will increase, positioning ChargePoint for potential growth. However, the charging infrastructure market is becoming increasingly competitive, with both established companies and new entrants vying for market share. ChargePoint needs to maintain its leadership position by expanding its network, offering convenient and reliable charging solutions, and adapting to the evolving needs of EV drivers and industry standards. Their success depends on their ability to navigate this competitive landscape, secure strategic partnerships, and capitalize on the growing demand for EV charging.