With 2021 likely to be another stellar year for Tesla, several other manufacturers are vying to be in the driver’s seat of electric vehicle (EV) development amid ever-growing hype and competition, says GlobalData. Not only were EVs the talk of the town across industries, but the leading data and analytics company has revealed that modern investors are willing to bet big on EV companies based largely on the anticipation of just how large this sector could grow.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “Judging by the rate at which businesses are talking about EVs, it won’t be long before these vehicles hit the mainstream. Environmental, social and governance (ESG) issues will be the most impactful theme over the next decade and companies that don’t invest will see a drop in profits far sooner than they ever imagined. Go green or go bust.”

GlobalData’s filing and analytics database notes that both EVs and Autonomous Vehicles have gained mentions and sentiment in 2021, while hydrogen has run out of steam. Mentions of EVs in company documents rose 35% in 2021 while sentiments grew by 5%. Autonomous vehicles saw 25% rise in mentions and 9% in sentiments.

Daniel Clarke, Thematic analyst at GlobalData, suggests that modern investors are willing to bet big on EV companies like Tesla and Rivian, despite gaps in current revenue and valuations.

Clarke comments: “The Rivian valuation is an example of how modern investors make critical decisions based on recognizing future themes over a more traditional financial metric approach.”

Key Automotive theme sentiments seem to be highly positive and in the 0.9-1 range, while sentiment around Hydrogen as a theme has fallen behind EVs and Autonomous Vehicles in 2021.

On the Hydrogen front, Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, suggests that while several companies consider hydrogen as an over-hyped technology, Toyota seems to be more confident around the theme.

Agwan comments: “Mainstream implementation of hydrogen engines in the near-to-midterm is likely to be a long shot, with EVs being the key channel towards a carbon-neutral transition. However, Toyota needs time to overcome engine-related challenges and showcase the technology as not over-hyped.”

Pereira adds: “Analysis of GlobalData’s Filing Analytics database also shows us that automotive companies have better control over supply chain issues in Q4, with discussions around supply risk down by around 8% in Q4 2021* compared to Q3. However, persisting chip supply pressures could dampen EV sentiments moving into 2022.”

*Until 12 November 2021