With demand for electric vehicles (EVs) growing rapidly, the next big hurdle for the nascent industry is supply. Research Analyst Chris Benway says investors should stay focused on finding companies that can rise to the challenge.

Key Takeaways

  • Global EV sales are hitting an inflection point as demand for the vehicles solidifies. But with technology still evolving and supply constrained, EV-related stocks have been volatile.
  • Companies focused on recruiting top engineers, developing both hardware and software, finding reliable sources of raw materials, and raising sufficient capital will likely be best positioned.
  • Despite near-term volatility, EVs’ growth potential looks increasingly promising. Manufacturers are achieving sizable gross margins, and technology is unlocking new applications, such as autonomous driving.

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