The electric vehicle (EV) space has been hitting some speed bumps as of late. Ever since the U.S. Federal Reserve began its rate hike cycle in 2022 to diffuse inflationary pressures, not only has taking out a loan become expensive but consumer demand for goods has also dwindled. In the United States and elsewhere, consumers have become accustomed to taking out car loans to purchase new vehicles. Elevated rates mean these car notes are expensive; car insurance has certainly not gotten cheaper either.
Nevertheless, what investors should be confident about is the staying power of electric vehicles. Governments have worked endlessly to promote them, and consumer sentiment is shifting toward electric vehicles over conventional combustion engine ones.
For long-term investors, below are the three top EV companies driving the future of transportation.
BYD (BYDDY)
From lithium-ion battery maker to international electric vehicle behemoth, Chinese automaker BYD (OTCMKTS:BYDDY) is a key player in shaping the global EV market. At the end of 2023, BYD was able to surpass Tesla‘s (NASDAQ:TSLA) vehicle delivery count, making it the largest the EV business on the planet in terms of delivery volume. While spots for #1 deliveries can change hands from quarter to quarter, BYD’s achievements should resonate to all investors.
The Chinese EV maker’s first quarter delivery results for 2024 also surpassed analysts expectations. BYD’s dominance in mainland China and successful expansions to other regions, such as Southeast Asia, underscores the way in which the company is shaping the future of transportation. The European Union and American governments might baulk or have concerns about BYD’s relatively low-price tag, but the fact of the matter is, most of the world desires vehicles at a cheap price. BYD is providing this at a high capacity, ultimately helping to shape transportation.
EHang (EH)
The second entry on this list does not make cars per se, but it does design and manufacture electric flying vehicles. EHang (NASDAQ:EH) is China’s number one electric vertical take-off and landing (eVTOL) start-up company. While we are years away from flying cars being a standard mode of transportation in cities, it’s hard to not think of EHang, which has sold functional eVTOL vehicles as well as formed partnerships in major cities across the globe, as having a role in shaping future transportation.
In the city of Guangzhou, where EHang has worked to scale up deliveries of its EH216-S aircraft, there are many modes of transportation, especially with public transport being ubiquitous. EHang is simply paving the way for flying cars to be another option for some city dwellers to take in order to get from A to B.
EHang is also trying to bring its eVTOL aircraft to the Middle East with recent partnerships in the United Arab Emirates.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is certainly struggling as of late, but the U.S. automaker’s role in shaping the EV market to what it is today is undeniable. The EV giant, with Elon Musk at the helm, has made the mass production of electric vehicles possible. Tesla has also been instrumental in building out much of the charging infrastructure in the United States that EV owners rely upon. The automaker’s role in infrastructure has been so well-recognized that the trillion-dollar infrastructure bill signed into law a few years ago will leverage Tesla and its charging capabilities to build out more charging infrastructure in the United States.
Moreover, despite a severe slowdown in deliveries, Tesla is still one of the two largest EV companies in the world. Because of that, Tesla’s role in the future of private vehicle transportation will remain significant for the long term.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.