CEO of Tesla Motors Elon Musk.
Brendan McDermid | Reuters
Electric vehicle stocks could climb up to 50% this year, according to Wedbush analyst Daniel Ives, who thinks there’s enough room in the market for more than just Tesla.
“In my opinion EV stocks could be up another 40- 50% this year, given what we’re seeing in terms of a green tidal wave globally,” Ives told CNBC’s “Street Signs Europe” Monday.
“I think right now it’s a big enough ocean for more than one boat,” said Ives. “It’s not just going to be Tesla’s world.”
Ives said he expects the electric vehicle industry to grow into a $5 trillion market over the next decade; in 2020, market research firm Fortune Business Insights valued it at around $250 billion.
He’s also bullish on the outlook for traditional automakers, as well as pure electric vehicle makers like Tesla.
And it’s not just EV makers that analysts are bullish on. In a February note, Goldman analysts pointed to six EV battery specialists with significant potential upside.
“This is one of the most transformational growth trends in the last 20 or 30 years in terms of EV, and many are going to play and win in this sector over the coming years,” Ives added.
One thing that currently sets Tesla apart from other electric vehicle makers is the $1.5 billion it has put into the world’s best-known cryptocurrency, bitcoin.
Ives said that Tesla is now “tied to the hip a bit” with bitcoin, but that’s not necessarily a bad thing.
“I think that’s a double-edged sword,” he said in reference to the investment. “I still believe it’s a smart strategic move for Tesla to go after Bitcoin … They’ve made more from Bitcoin than they have from selling EV cars last year.”
Ives said he thinks that between 3% and 5% of U.S. corporations will own bitcoin or another cryptocurrency in the next 12-18 months.
“It’s going to be contained until we start to see more regulatory goal posts, but this is not going away,” he said, pointing to recent bitcoin investments from fintech firm Square and software giant MicroStrategy.