2 Energy Stocks to Buy Now to Profit from the EV Boom

The term “energy stock” is hilarious. When you think of an energy stock, an oil and gas business comes to mind. Many industry categorization manuals classify that as an energy company. But in reality, companies engaged in energy transmission might be “energy stocks,” including technology companies, utilities, and even asset management firms.

That brings me to the point of this article.

The rise of electric vehicles (EVs) need not be bad for energy stock prices. Many people believe that to be true, however, it’s not. EVs may even benefit the energy sector if you define “energy” broadly to encompass nuclear, solar, and wind energy. In this post, I’ll examine two renewable energy companies that benefit from the EV movement rather than suffer from it.

Canadian Solar Energy Stocks

This isn’t just a little business assisting people in purchasing solar panels to install on their roofs; it also sells solar panels to utility companies, huge office complexes, and other industries. Sure, CSIQ sells solar panels to households, but it’s much more than the dime-a-dozen solar businesses you’ve probably heard about. It is a $2 billion medium-sized business with connections to major corporations.

The growth of EVs has numerous advantages for the solar industry. EVs run on electricity, which is initially produced by solar panels. Second, EV owners are more likely than average to create their solar energy at home, making solar a particular type of energy. According to research, 38% of North American EV owners also had solar panels, and another 10% said they intended to buy some soon. These numbers are substantially higher than the averages for the population. Therefore, CSIQ has a more significant potential client base the more EVs are purchased.

How is the business of Canadian Solar doing? Good enough. It generated $2.31 billion in revenue during the most recent quarter, up 31% year over year, and $74.4 million in profits, up 560% year over year. That growth is fantastic. You can bet CSIQ will continue to encourage green living if governments continue to do so.

Brookfield Renewable Partners

A Canadian fund for investments in renewable energy is called Brookfield Renewable Partners (TSX:BEP.UN). Similar to an ETF or a REIT, it has a diverse portfolio of assets available for purchase on the stock market.

EV owners can use a range of “green energy” assets owned by BEP.UN to charge their vehicles. Hydroelectric plants, wind farms, and solar utilities are a few examples. They are considered “clean” energy sources by governments, which may give BEP the upper hand in an era of escalating climate change restrictions.

How is BEP doing commercially? It appears to be working reasonably well. BEP.UN reported $294 million in funds from operations, up 10%, and $1.27 billion in revenue, up 25%, for the most recent quarter. Given that Canada has prioritized combating climate change, that is significant growth, and Brookfield Renewable Partners is sure to receive favorable treatment from the government in the future. Therefore, there is a remote chance that BEP.UN’s impressive performance will endure.

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