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The Worley Ltd (ASX: WOR) share price is up slightly this morning after the company announced an extended contract with a UK partner.

At the time of writing, the global engineering company’s shares are up 0.66%, trading at $10.60. 

Renewed contract

In today’s release, Worley advised that INEOS O&P UK has renewed its master services agreement for its Grangemouth, United Kingdom site. One of the largest manufacturing plants in the country, INEOS O&P UK produce chemical products that include ethylene, polyethylene and ethanol. This is then used to create bottles and pipes, cabling and insulation, food packaging, and more.

Under the agreement, Worley will provide engineering services for ongoing maintenance and upgrades to the facility. These works are expected to be small in capital expense terms and will run for 4 years.

The deal will be managed by Worley’s Glasgow, United Kingdom office, and supported by the Global Delivery team.

CEO commentary

Worley CEO Chris Ashton welcomed the extended partnership, saying:

Worley has been at Grangemouth for more than 20 years and this extension of our master services agreement reinforces the strong relationship the Worley team has developed with INEOS O&P UK. We look forward to continuing our relationship and helping INEOS O&P UK achieve its sustainability goals.

Worley overview and share price snapshot

A leading global engineering company, Worley provides design and project delivery services, including maintenance, reliability support services and advisory services. The business operates in the energy, chemical and resources sector.

The Worley share price has fallen around 13% over the last 12 months, and 8% lower year-to-date. Although the company has announced a raft of agreements in the past 3 months, its share price has failed to take-off.

Based on current valuations, Worley commands a market capitalisation of roughly $5.5 billion.

More reading

• Why the Worley (ASX:WOR) share price is climbing today
• Why the Worley (ASX:WOR) share price will be on watch today
• What’s with the Worley (ASX:WOR) share price today?
• Oil’s recovery is happening faster than you think: Citigroup
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Althea Group Holdings Ltd (ASX: AGH) share price is on course to end the week on a positive note.

At the time of writing, the cannabis company’s shares are up 2% to 52 cents.

Why is the Althea share price pushing higher today?

Investors have been buying Althea shares this morning following the release of a positive announcement.

That announcement reveals that its Canadian subsidiary, Peak Processing Solutions, has received an initial purchase order from Peace Naturals Project.

Peace Naturals Project is a subsidiary of C$4.4 billion and Nasdaq listed cannabis giant Cronos Group.

According to the release, the initial purchase order forms part of a larger one-year commercial services agreement and is valued at approximately C$134,000.

Under the agreement, Peak Processing will perform the hydrocarbon extraction of cannabis biomass and process the extract into cannabis concentrate products, ready for sale into the Canadian adult-use cannabis market.

Management notes that the capability to produce hydrocarbon extracted cannabis concentrates is in limited supply in Canada. Positively for Althea, Peak Processing is among a handful of processors able to service this in-demand product category. Production is expected to commence this month.

Management commentary

Althea’s CEO, Joshua Fegan, was pleased with the agreement and notes that its Peak Processing business has started 2021 strongly.

He said: “It is pleasing to see how quickly the Peak business is taking off this year, attracting a world-class supply agreement with Peace Naturals, just a few months post licensing. We look forward to continuing to secure supply agreements with other like-minded players in the fast-growing Cannabis 2.0 space and further demonstrating the world-class cannabis extraction capabilities of Peak.”

Today’s gain means that the Althea share price has now risen an impressive 73% since this time last year.

This compares very favourably to a 5% gain by the benchmark ASX 200 index.

More reading

• Why the Althea (ASX:AGH) share price is surging 8% higher today
• Here’s why the Althea (ASX:AGH) share price is racing 8% higher today
• What will Elite Cannabinoids mean for ASX cannabis shares?
• How did ASX cannabis shares perform in 1H FY21?
• Here’s why the Althea (ASX:AGH) share price is jumping 7% today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Tesla Inc (NASDAQ: TSLA) stock remained in reverse gear Thursday morning, rolling toward its third straight day of losses with the share price down 1.3% as of 11:20 a.m. EST.

Why? My fellow Fool and Tesla-watcher Daniel Sparks told you the first half of the story on Wednesday: A new report out of Morgan Stanley says that Ford Motor Company (NYSE: F)‘s new Mustang-E is cutting into Tesla’s electric vehicle market share in the United States — it dropped by 12 percentage points in February.

The second part of this story dropped later Wednesday night. CNBC reported that Fiat Chrysler — now part of Stellantis (NYSE: STLA) — spent $362 million last year buying regulatory credits to offset the emissions of the cars it sells. Most of this money went to Tesla, which has credits aplenty to sell because the cars it manufactures don’t emit carbon at all.  

So what

So why is that important? Last year, Tesla raked in $1.6 billion in 100%-margin regulatory credit revenue, selling credits it doesn’t need to automobile manufacturers that do. Analysts are hoping that this business will boom even bigger in 2021, dropping as much as $2 billion in revenue straight down to Tesla’s bottom line, and thus helping it to grow its earnings.  

But here’s the thing: Stellantis plans to cut back its purchases of regulatory credits this year — not by much, but by some. It certainly doesn’t plan to increase those purchases by 25%. And if other car companies follow Stellantis’s lead and fail to increase their credit purchases, or even ratchet them back, then the primary source of Tesla’s profits could at best be peaking, and at worst — reversing.

Now what

Now consider what that trend might look like as more and more automakers — companies like Hyundai, Volkswagen, and GM — start selling more EVs of their own. Consider what it might look like if these other car companies not only don’t need to buy as many credits, but start producing some credits that they can sell. And consider what it might look if these other companies start to steal electric vehicle market share from Tesla, cutting into the amount of credits Tesla generates to sell.

The scenario above may not necessarily spell doom for Tesla, but it certainly doesn’t help support the case for Tesla stock trading at more than 900 times earnings.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Shocking photo shows how quickly electric cars could take over
• Elon Musk doubles down on promise to IPO Starlink
• Why this ASX tech ETF is in the buy zone
• How Tesla’s (NASDAQ:TSLA) Elon Musk just lost $19 billion
• Why Tesla and Peloton Interactive led the Nasdaq lower Wednesday

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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NextDC Ltd (ASX: NXT) shares slipped to a 9-month low this week despite an upbeat half-year result which included an upgrade to its FY21 guidance. While the NextDC share price has gone south, some big brokers were impressed with the results and have maintained a bullish stance. 

Broker ratings for the NextDC share price 

On 2 March, Morgan Stanley retained an overweight rating for the NextDC share price with a $14.60 price target. The broker noted that the company’s first-half revenues and operating income were ahead of estimates with a strong pick up in business activity in the new year. 

Citi is also bullish on the NextDC share price but made a slight price target adjustment from $14.80 to $14.45 with a buy rating on 4 March. The broker described the company’s results as solid, with revenue and operating income margins ahead of forecasts. Themes such as accelerated cloud adoption and digitisation were factors behind the broker’s positive view. 

1H21 highlights 

NextDC’s half-year results were solid across all reporting metrics. The company delivered a 27% increase in revenue to $121.6 million and a 29% improvement in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $65.7 million.

The company is still on its journey to profitability, reporting a loss after tax of $17.5 million. NextDC is well capitalised for growth with $716 million in cash and cash equivalents as of 31 December 2020. It also has a number of debt facilities to provide additional liquidity and capital if required. 

Taking a look at the bigger picture, NextDC has delivered a compound annual growth rate (CAGR) of 21% for revenue and 32% for EBITDA since 2H17. It highlights the increasing use of hybrid cloud and connectivity both inside and outside the data centre as customers expand their digital ecosystems. 

Upgraded guidance fails to ignite NextDC share price 

Upgraded guidance is always the icing on the cake after a solid earnings announcement. NextDC upgraded its revenue guidance to $246 million to $251 million (previously $242 million to $250 million). The business is seeing strong growth in recurring data centre services revenue, underpinned by long-term customer contracts. 

The company’s continuous investment into new centres creates additional capacity and inventory across all markets to drive further enterprise and network opportunities. 

Foolish takeaway

Strong results, upgraded guidance and positive broker ratings have been unable to turn the NextDC share price around so far this week. The company’s shares have dropped by more than 5% since its half-year result and by nearly 14% year to date. 

However, it’s not just the NextDC share price that’s been underperforming. The S&P/ASX 200 Info Tech (ASX: XIJ) index has also been struggling, falling by more than 10% in February, despite the ASX 200 closing 1% higher. 

More reading

• Top ASX shares to buy in March 2021
• NEXTDC (ASX:NXT) share price on watch after strong half and guidance upgrade
• 3 of the best ASX shares you can buy right now
• Is HyperOne listed on the ASX?
• 2 ASX tech shares to buy for cloud computing exposure

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX shares that could be cheap and may be worth looking at.

One of the most common ways that investors try to compare different investments is by looking at the price / earnings ratio (P/E ratio). The lower it is, the cheaper it is, though that doesn’t necessarily give the best indication of value.

However, there are some businesses that are growing quickly yet are valued at a relatively low p/e ratio compared to other companies and sectors.

Here are two that fit that description:

Accent Group Ltd (ASX: AX1)

Accent is an ASX retail share that sells a large array of different shoe brands from its different stores. Its flagship chain of retail outlets is called The Athlete’s Foot.

Like plenty of other retail shares, the company is experiencing high levels of growth in these strange times due to COVID-19.

In the recent FY21 half-year result, total sales went up by 6.6% to $541.3 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 44% to $97.5 million, earnings before interest and tax (EBIT) grew by 47.3% to $81.8 million and earnings per share (EPS) rose 56.9% to 9.76 cents.

This result was driven by a 110% increase of online sales to $108.1 million, which represented 22.3% of total sales.

The strong result allowed the company to pay a record ordinary interim dividend of 8 cents per share, up 52.4% compared to the prior corresponding period.

In the first eight weeks of FY21, like for like sales were up 10.7%, whilst digital sales were up 65.4%.

The Accent CEO Daniel Agostinelli said:

Accent’s integrated digital capability, large and growing store network, strong portfolio of exclusive distributed brands and emerging capability in building new business formats and vertical products continues to drive strong sales and margin growth. The management team remains focused on driving digital growth and innovation. With long-term objectives and incentives linked to driving at least 10% compound EPS growth, Accent continues to be defined by strong cash conversion and the consistently strong returns it delivers on shareholders’ funds.

According to Commsec, the Accent share price is valued at 16x FY21’s estimated earnings.    

Nick Scali Limited (ASX: NCK)

Citi currently rates Nick Scali as a buy and has a share price target of $12.05.

Furniture business Nick Scali is seeing record levels with its order book, which is an indicator of future revenue and potential profit. The sales order growth in January 2021 was up 47%, representing the largest month of written sales orders in the company’s history.

The furniture business said that in the first six months of FY21 its sales revenue climbed 24.4% to $171.1 million, with pre-AASB16 EBITDA jumping 94.2% to $60.2 million and EBIT doubling to $57.7 million.

Nick Scali’s margins climbed substantially during the six-month period, with the gross profit margin increasing by 180 basis points to 64% and the EBIT margin growing by 1,270 basis points to 33.6%.

Underlying EPS doubled to 50 cents, allowing the board to increase the interim dividend by 60% to 40 cents per share.

Nick Scali has its eyes on the online growth potential. The company said in the half it saw $8.8 million of written sales orders, with an EBIT contribution of $3.5 million. It now expects to significantly exceed the $4 million contribution previously forecast for the full year. The company also said:

There remains significant scope for growth in the online segment, via adjacent product opportunities as well as continuing to build Nick Scali’s online offering in New Zealand. Investment in the capability is underway with further updates expected in the second half of FY21.

According to Citi, the Nick Scali share price is trading at 11x FY21’s estimated earnings with a projected grossed-up dividend yield of 11%.

More reading

• 2 ASX dividend shares with generous yields
• 3 highest yielding ASX dividend shares
• 3 ASX shares that doubled their profit in reporting season
• This fantastic ASX dividend share will help you beat low interest rates
• Accent (ASX:AX1) share price on watch following earnings release

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Finding top shares to buy in March 2021 could prove to be a tough process. The stock market has rallied after the 2020 market crash. As such, some companies may now appear to be overvalued based on their financial prospects.

However, it may still be possible to unearth top stocks that offer a mix of competitive advantages, solid finances and low valuations. Such companies could offer favourable long-term growth opportunities relative to other businesses.

Searching for top shares where other investors are not looking

A good place to start when searching for top shares could be unpopular sectors. Other investors may have disregarded them based on a variety of factors, including their uncertain prospects or a rapid pace of change that is taking place. This may provide opportunities to buy high-quality companies when they are trading at attractive prices.

Clearly, every investor will have their own version of what represents an attractive company. However, it could include those businesses that have solid financial positions and the capacity to adapt to a changing economic outlook. Through looking for such businesses where other investors are not spending much time doing likewise, it may be possible to unearth the most appealing buying opportunities following the stock market rally.

For example, investors may not be especially upbeat about the prospect of finding top shares in sectors such as financial services or energy at the present time. They face difficult operating conditions that could lead to losses for investors in what remains a precarious economic environment. However, by identifying the strongest businesses within such sectors, it may be possible to find undervalued companies within them.

Comparing stocks to their peers

Once a potential buying opportunity has been found, it may be a good idea to make a comparison with sector peers. This can provide a guide as to whether it among the top shares to buy today.

For example, two companies operating in the same sector may have similar valuations. However, one business could have a wider economic moat, such as a unique product or strong brand, that reduces its overall risks. Similarly, two stocks could have wildly different valuations – even though they have similar cost bases and revenue drivers. This may mean there is a misprising opportunity that can be exploited by investors.

Assessing a company’s quality

Clearly, the future is always a known unknown. Even top shares that offer a mix of low prices and solid financial prospects can underperform the market. They may even fail to deliver a positive return in the coming years.

However, by taking the time to analyse specific sectors that may be unpopular at the present time, it may be possible to obtain a relatively attractive risk/reward ratio. Over time, this may lead to attractive portfolio returns.

More reading

• 2 cheap ASX shares to buy with impressive growth
• Why the Bellevue Gold (ASX:BGL) share price is on watch
• Is the Xero (ASX:XRO) share price in the buy zone after its acquisition?
• Can the ANZ (ASX:ANZ) share price go even higher?
• Shocking photo shows how quickly electric cars could take over

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Thursday the Xero Limited (ASX: XRO) share price tumbled lower with the rest of the tech sector despite the announcement of a new acquisition.

The cloud-based business and accounting platform provider’s shares fell 2.5% to $115.90.

This means the Xero share price is now trading almost 27% lower than its 52-week high.

Is this a buying opportunity?

One broker that sees the weakness in the Xero share price as a buying opportunity is Goldman Sachs.

In response to its acquisition of Planday, this morning the broker retained its buy rating and $157.00 price target on the company’s shares.

Based on the current Xero share price, this price target implies potential upside of 35% for its shares over the next 12 months.

What did Goldman say about the acquisition?

Goldman appears to believe the acquisition would be a meaningful step into Europe.

Its analysts commented: “We see the transaction as a potential meaningful step for XRO in (1) providing a beachhead for core accounting expansion in Scandinavia and Continental Europe where Planday currently operates (we previously estimated Denmark/ Norway/ Sweden / Germany and France have a combined subscriber/revenue TAM of 6.2mn/NZ$1.5bn), (2) building out its App ecosystem (post Waddle, Hubdoc etc.); and (3) driving Planday penetration through Aus/NZ/Other subscribers.”

Why is the Xero share price good value?

Goldman Sachs sees a lot of value in the Xero share price at the current level due to its belief that it has a very long runway for growth.

The broker explained: “Key pillars of our buy thesis are: (1) Xero has a long runway for cloud accounting growth (in existing and new markets); (2) can drive earnings through monetisation of its ecosystem; (3) has highly attractive unit economics; and (4) substantial barriers to entry at scale.”

“Overall, we believe this proposed acquisition is consistent with our positive view on Xero monetising its ecosystem and entering new geographies, with the FY21 result (13th of May) as the next key catalyst,” it added.

This could make it worth taking a closer look at Xero once the volatility in the tech sector eases.

More reading

• ASX 200 sinks, Xero reveals acquisition, ARB driven higher
• Is Altium’s (ASX:ALU) dividend growth star fading?
• Why are ASX tech shares like Afterpay (ASX:APT) so volatile?
• 2 quality SaaS ASX shares to buy in March 2021
• Why the Xero (ASX:XRO) share price is on watch today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bellevue Gold Ltd (ASX: BGL) share price is one to watch in early trade. Shares in the Aussie mid-cap gold miner could be on the move following an after-market announcement on Thursday evening.

Why is the Bellevue Gold share price on watch?

Bellevue Gold yesterday said it had succeeded in its Supreme Court of Western Australia court hearing. The company’s shares have been in a trading halt as it resolves issues around the appointment of its previous auditors.

The Aussie miner was seeking to “rectify the administrative oversight” related to the appointment of Grant Thornton. That largely centred on the company’s failure to seek shareholder approval for the appointment at an annual general meeting (AGM).

The court yesterday found that the appointment of Grant Thornton as auditor from 20 November 2018 to 2 February 2021, when Ernst & Young were appointed, is not invalid and does not constitute a contravention of the Corporations Act 2001 (Cth).

Yesterday’s update means the court has now granted orders to amend these auditor appointment matters and cleansing notices. Bellevue failed to have approval granted at the 2018, 2019 and 2020 AGMs. However, the court found that this did not invalidate Grant Thornton’s appointment.

The Bellevue Gold share price has been frozen since Friday 26 February. Shares in the Aussie gold miner have slumped in 2021 and will be worth watching this morning.

Despite a rocky start to the year, Bellevue shares remain up 30.9% in the last year and 3,500% over the last five years.

Foolish takeaway

The Bellevue Gold share price is one to watch this morning as the miner’s shares return to trade. Bellevue shares have fallen 38.5% in 2021 to 72 cents per share as at Friday 26 February’s close. Gold investors will be watching the mid-cap stock closely after its one-week absence when the ASX boards open up today.

More reading

• Why is the Bellevue Gold (ASX:BGL) share price frozen?
• Why the Bellevue Gold (ASX:BGL) share price is crashing 23% lower today
• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a strong performer over the last six months.

During this time, the banking giant’s shares have rallied a whopping 57% higher.

Is it too late to buy ANZ shares?

According to a note out of Goldman Sachs, the ANZ share price could still be going a little higher from here.

This week the broker upgraded the bank’s shares to a buy rating with a $29.00 price target.

Including the $1.25 per share dividend that the broker expects the bank to pay in FY 2021, this implies a potential total return of 6.5% for ANZ’s shares.

What did Goldman say?

Goldman Sachs made the move for a number of reasons. This includes its balance sheet strength and its net interest margin (NIM).

It explained: “We upgrade ANZ to Buy given: (i) still solid balance sheet momentum, (ii) its 1Q21 trading update highlighted it was well positioned for the current NIM environment,( iii) we think the update on its cost targets expected at its 1H21 result could provide a further catalyst for re-rating, and (iv) our revised A$29.01 TP offers 14% TSR [at the time] and the stock is trading at a 21% discount to peers (9% historic average).”

Can the ANZ share price go even higher?

Goldman Sachs isn’t the only broker that believes the ANZ share price can go higher.

Analysts at Morgans currently have an add rating and $31.00 price target on the bank’s shares.

In addition, the broker is forecasting a $1.45 per share dividend in FY 2021. Based on this and the current ANZ share price, its shares could provide investors with a total return of 14% over the next 12 months.

All in all, while the ANZ share price has rallied strongly over the last six months, the run may not be over.

More reading

• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade
• These ASX 200 shares are trading at near 52-week highs
• The ANZ (ASX:ANZ) share price just hit a 52-week high
• The big four banks offer these juicy dividend yields to ASX investors
• Here’s why the ANZ (ASX:ANZ) share price is underperforming today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares like Tesla Inc (NASDAQ: TSLA) and Lynas Rare Earths Ltd (ASX: LYC) have been going gangbusters as investors increasingly come to the realisation that electric vehicles will take over.

This shift is still in its infancy in Australia. Just 0.2% of all vehicles in this country are powered electrically, according to insurer Budget Direct.

But if you were in any doubt about how quickly a market can change, check out this picture:

WOW 13 years for #Techchange #Horses to #Cars #NYC Easter 1900 & Easter 1913 – What Technology changes by 2030 #FutureofWork #ArtificialIntelligence #MachineLearning #IoT #Robotics https://t.co/lkZ0vkFQgu – via @builidingcontext pic.twitter.com/zboK8MHydv

— Ian Knowlson 📈 (@IanKnowlson) December 29, 2018

https://platform.twitter.com/widgets.js

The dramatic side-by-side photo, attributed to Project Haystack Connections managing editor Therese Sullivan, shows how a New York City streetscape completely morphed in just 13 years.

The left photo shows the Easter Parade in 1900 dominated by hundreds of horse-driven carriages, with just one motor vehicle seen.

But the same parade only 13 years later hosts just one horse-powered carriage, surrounded by hundreds of motor cars.

If the transition from horses to petrol engines happened that quickly, the less dramatic shift from petrol to electric could occur in the blink of an eye.

UBS research heads Céline Fornaro and Patrick Hummel reckon transport globally could be “almost fully decarbonised” by the year 2040. 

“Our forecast is that electric vehicles will account for 40% of global new car sales by 2030,” they reported.

“While many industry players think that is too high, we think it could be too low.”

And to remind you, 2030 is only nine years away now.

Tailwinds for electric cars

Already some countries have created a deadline to outlaw sales of petrol-powered vehicles. 

“The UK even plans to ban the sale of combustion engine vehicles in 2030, and aims for aviation net zero emissions by 2050,” said Fornaro and Hummel.

“China has laid out a roadmap to carbon neutrality by 2060. California has pioneered the adoption of the electric car and penalises heavily the use of non green carbon fuels. The certification of Europe’s first two-seater electric plane came in 2020.”

As well as regulation, the UBS report cited two other drivers that will supercharge electric car adoption:

• Battery technology: “Battery costs have dropped by more than 50% over the past five years, and full manufacturing cost parity with combustion engine cars should be reached by 2025, at the latest.”
• Fuel-cell technology: “Hydrogen powered fuel-cell trucks could become the most cost efficient solution for long haul transportation. The technology could also replace diesel powered locomotives and could even be used in ships (e.g., ferries).”

Investors seeking to add exposure to the future of electric car domination have increasingly poured into vehicle manufacturers like Tesla or Nio Inc (NYSE: NIO).

Additionally, there are many companies that contribute materials or parts to the industry. Lynas and Magna International Inc (NYSE: MGA) are two examples.

There are also businesses involved with providing charging infrastructure, as listed by our The Motley Fool colleagues in the US.

More reading

• Lynas (ASX:LYC) share price jumps 6% to new 52-week high
• Why the RareX (ASX:REE) share price is up 400% in a year
• ASM (ASX:ASM) share price jumps as scoping study supports $45m plant build
• Elon Musk doubles down on promise to IPO Starlink
• Here are 3 ASX 200 diamonds in the spotlight while the market sank today

Tony Yoo owns shares of NIO Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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