Renewable energy has dominated the discourse in recent times. The fact is that fossil fuels are no longer sustainable energy sources. They are not meant for the future. Corporations and governments all over the world are committed to reducing their carbon footprints in the foreseeable future. This has created opportunities for companies that produce cars powered by alternative energy sources such as electricity. The pure-play electric companies focus on the production of only electric vehicles. Some of the best electric vehicle stocks are stocks of companies such as Tesla, XPeng and Nio.

The traditional vehicle manufacturers have also started producing their own electric vehicles, e.g. Toyota, Ford, etc. They have substantial resources and should be able to compete favourably with the pure-play companies.