fbpx
StashLearn
Get started
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

The Battle Between SUVs and Electric Cars

November 18, 2019

SUVs still control the fast lane.

2 min read

You may have noticed more electric cars and charging stations on the road recently, but that doesn’t mean that gas-guzzling Sport Utility Vehicles, or SUVs, have disappeared.

Far from it. In fact, while people bought more electric vehicles in 2018, they purchased even more SUVs, making them the top-selling automobile in the U.S., and potentially cancelling out the positive environmental impact of electric vehicles.

That’s according to the International Energy Agency, in its annual energy report, released November 12, 2019. The IEA is an organization run by a consortium of 30 countries, devoted to developing clean and sustainable energy.

This year’s report predicts that global energy consumption will soar by 2040 under current climate policies, which could also lead to increased carbon emissions and global warming. The agency found growing use of renewable sources of energy such as wind, solar, and hydropower, but it also found the use of nonrenewable resources that create greenhouse gas emissions are rising at a rate that may outweigh any positive impact from renewable energy.

Top Takeaways from the Climate Report

SUVs vs. electric cars

Most U.S. car companies are developing electric cars,  to compete with Tesla, the biggest player in the electric car industry. In October 2019, Ford announced plans to start producing electric cars, as well as a national network of charging stations. Ford also announced plans to develop an electric version of its iconic Mustang. Similarly, General Motors said it will soon release dozens of new electric car models by 2023, to add to its Chevrolet Bolt. Fiat Chrysler also announced plans in 2019 to develop electric Jeeps.

Still, consumers seem to prefer driving SUVs. While sales of electric cars increased by 81% in 2018, there were still only 1 million electric cars on the road. Nearly half of all car sales in the U.S. in 2018 were reportedly for SUVs. Last year, there were 200 million SUVs on the road, compared to 35 million in 2010. SUVs are also the second-largest contributor to global carbon emissions, after the energy and power sector, according to CNBC.

0million
SUVs on the road in 2010
0million
SUVs on the road in 2018
*Source: CNBC

The International Energy Agency says that under current conditions, energy demand will continue to outpace the development of renewable resources.

You can invest in renewable energy companies and companies that develop electric car technology on Stash.

Welcome to your new financial home.

Start today with any dollar amount.

Get the App

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

By Claire Grant
Claire is a content writer for Stash.

Investment Profile

Legal Cannabis Industry

Get all the details on investing in marijuana and the cannabis industry legally.

Learn more
Explore more articlesChoose a topic to learn more about
love and money budgeting Careers Technology pop culture
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.