A renewable energy infrastructure is well on its way to being built. However, patient investors still have time to get involved with green transportation stocks.
Fossil fuels will still be needed for decades to come. Therefore, traditional energy stocks will remain solid investments, particularly for the income generated by their dividends.
The Electric Vehicle Leader: Tesla (TSLA)
As of January 31, 2024, Tesla (NASDAQ:TSLA) stock is down more than 20% in 2024. Most of that drop occurred after the company’s “train wreck” of an earnings report, which disappointed the top and bottom lines.
Tesla is still the head-and-shoulders leader in the EV space. The competition will play catch-up in an environment with a higher interest rate. The company plans to build a less expensive, mass-market compact crossover scheduled to start delivery in mid-2025.
The bottom line is that investing in green transportation stocks is a long-term play. But if you have the patience to wait on the payoff, here are three stocks to consider.
The Future of Air Travel: Vertical Aerospace (EVTL)
Looking beyond the EV market, flying cars or electric vertical take-off and landing (EVTOL) vehicles are becoming a reality. Vertical Aerospace (NYSE:EVTL) is one of the emerging publicly traded names in the sector.
Vertical Aerospace is a penny stock that currently trades for around 72 cents a share. The company has received a delisting warning and has issued a going concern warning to investors. This is not a stock without risk.
The company has a prototype unit, the VX4, that has logged over 1,000 test flights and is targeting 2025 as the year it can receive FAA certification to begin commercial operations.
Innovating School Buses: Blue Bird (BLBD)
Blue Bird (NASDAQ:BLBD) is a niche player among green transportation stocks, manufacturing school buses, including electric school buses.
According to the company’s investor presentation, 60% of the company’s sales are of the non-diesel variety. Its competitors can only cite 10% to 20%. Revenue and earnings have been increasing year-over-year (YOY). In fiscal year 2023, Blue Bird turned a 23% net loss into a 19% net profit. That’s one reason that BLDB stock is up 102% in the last 12 months.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.