Electric Vehicles Gaining Momentum

Lyft’s Announcement
Electric vehicles are steadily gaining popularity, and ride share companies are reacting. Lyft (LYFT) announced Wednesday that it plans to eliminate gasoline-powered cars from its vehicle options by 2030.

Lyft partnered with the Environmental Defense Fund to make the announcement. The EDF recognizes the potential impact this decision could have on the EV market and on the environment overall. Battery-powered vehicles are still a small percentage of total US vehicle sales, but that share is growing.

The Case for Electric Vehicles
Lyft is making the transition to EVs to protect the environment but also because of financial considerations. The company expects its operating costs to go down in the long term as it shifts away from gas engines. Even though EVs are typically more expensive to purchase, mainly because of the high price of batteries, Lyft believes it will more than make up for the upfront cost thanks to the money it will save on gasoline.

For years, people have voiced concerns about electric vehicles because of their battery life and limited availability of charging stations. Tesla (TSLA) is working to address both issues. For one, it increased the range on select Model S sedans to 400 miles per charge, which is a 20% improvement from the last model’s battery life. Tesla is also ramping up company-owned charging infrastructures.

Shares of EV Makers Increase
Investors are closely watching ride-share companies and EV makers. Shares of Lyft and Uber (UBER) have been down recently whereas EV makers are having a much better year stockwise with many of their shares having hit record numbers.

NIO (NIO), a Chinese manufacturer specializing in developing electric autonomous vehicles, is up almost 70% this year, and Tesla’s stock has skyrocketed 140%. Companies that supply EVs are also seeing their stocks climb. Fuel cell truck maker Nikola’s (NKLA) stock has risen more than 90% since the company went public on June 3. The industry will be an interesting one to keep an eye on as both consumers and companies like Lyft gain interest in new-and-improved electric vehicles.

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