electric car plugged in

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.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender