A brand that has captivated not only car enthusiasts, but environmentalists and sustainability advocates. Innovative technology and stylish design have made Tesla the fastest growing car manufacturer, not to mention a pioneer in the EV market. Despite their factory price tags being significantly above the budget of many mid-income households, their success in the category to date has gone largely unchallenged. But even after a year of tumbling share prices seeing it lose around 34% over the past twelve months, Tesla’s hold on investors reigns supreme, with the team at HULT Private Capital confirming many of its investors are looking to capitalise on the plunge by increasing their holdings in the company at its much more alluring current $800 share price.
EV Sales To Continue Rising
In a survey led by KPMG at the end of 2021, the general consensus from leaders in the global auto market was that we will see electric vehicles account for around 50% of all vehicle sales by 2030. With the recent surge in the price of oil owing to market volatility surrounding Russia’s invasion of Ukraine, consumer interest in EVs has risen considerably over the past month and is likely to continue peaking as the market becomes more accessible with greater consumer choice and the ongoing rollout of charging facilities.
HULT’s Investment Manager detailed “Renewable energy investments not only show great promise financially but meeting the social responsibly factor is fast becoming a priority”
“With plans underway to produce their own batteries in a bid to cut production costs by up to 50%, I don’t think increasing Tesla holdings within mid to longer term portfolios is a bad idea at all,” explained HULT’s investment manager, Chris Bland. “As society opens up more to the prospect of sustainable living, we are finding more clients are eager for their portfolios to reflect it. Renewable energy investments not only show great promise financially but meeting the social responsibly factor is fast becoming a priority for investors, whether in the stock market or through funds like those we work with.”
The advancement of renewable energy technologies such as the recent announcement from fund management Octopus Renewables to develop nine onshore wind farms in a joint bid with Wind 2 Limited supports the notion of investor demand for green growth. Octopus Energy Generation’s CEO, Zosia North-Bond highlighted the importance of the move, alongside their other recent acquisitions across mainland Europe, because “the energy crisis has shown how exposed Europe is to global fossil fuel prices. These new wind farms will help Europe reduce its reliance on gas and become energy-independent.”
HULT Private Capital declare 15% Of portfolios are now green
HULT Private Capital advised green investments are forming an average of fifteen percent of their investors’ structured assets, with many pension pots becoming progressively greener over recent years. Just last week, the Rt Honorary Therese Coffrey MP, addressed the Pensions and Lifetime Savings Association at their ESG Conference 2022 on managing climate risk and the UK government’s stance. She described it as ‘great that UK pension schemes are at the forefront of tackling climate risk, with leadership and progress being made across the sector.’
As we continue to move towards a ‘net-zero’ future, now appears to be a great opportunity for savvy investors to shape their portfolios around responsible net-growth.