Electric vehicles (EVs) were once a sci-fi pipedream. Today, they’re a rapidly growing alternative in the effort to fuel the world with eco-friendly alternatives to fossil fuels. There’s so much demand for EVs that the market is predicted to grow at a CAGR of 6.63% from 2024 to 2029. As the Managing Director and Head of the Asset Management and Financial Principals Coverage Team for J.P. Morgan Private Bank in Connecticut, Justin Nelson has a lot of professional interest in EVs. They represent a rapidly growing slice of the automotive industry that could lead to tremendous growth for his clients’ portfolios.
But on a personal level, Nelson just thinks they’re cool. “I always liked cars. I’m an enthusiast who appreciates different types of cars, including EVs,” he says. An automotive enthusiast and financial expert managing over $15 billion in assets, Justin Nelson is well-positioned to provide insights into how EVs will shape the future of transportation, investments, and sustainability.
Justin Nelson On The Technological Edge of EVs
Unlike traditional vehicles, which rely on gas, electric cars have rechargeable batteries that are often powered by renewable energy from solar or wind sources. “People don’t realize, when you drive a car like that, how bad it is for the environment, and the fact that that was what every car was back then,” Justin Nelson says. EVs are prohibitively expensive for many drivers today, but the costs are decreasing as they become more ubiquitous. There’s also the question of infrastructure: today’s EVs take hours to recharge and don’t always have a long enough range suited for long out-of-town drives.
Despite these limitations, Justin Nelson believes EVs have a serious technological edge in the car industry. Nelson marvels at the cutting-edge technology incorporated into EVs, noting how companies like Tesla lead the charge by packing their best innovations into electric models. “It’s interesting that car makers have put their best tech into EVs,” he says. As battery efficiency and charging infrastructure continue to improve, Nelson believes the performance gap between EVs and traditional vehicles will only widen, solidifying EVs as the future of the automotive industry.
While Nelson is optimistic about EVs, he acknowledges that the transition will take time. Affordability, charging infrastructure, and consumer education are key hurdles. “I totally respect the fact that I think a transition is going to take time,” he says. He predicts that adoption rates will accelerate as more affordable EV options enter the market and infrastructure becomes more robust.
The EV Market as an Investment Opportunity
“I have a solid commute everyday which gives me the opportunity to try various cars,” Justin Nelson explains. This commute gives the gearhead plenty of time to geek out about up-and-coming technology in EVs. Since automakers pour their latest technologies into EVs, it offers Nelson a chance to forecast the future of the auto industry—and investments in this market.
As a manager and private banker, it’s his job to manage his clients’ wealth responsibly. In many cases, that includes offering investment guidance. From a financial perspective, Nelson sees immense potential in the EV sector.
Balancing Financial Returns and Sustainability with EVs
The transition to electric vehicles is about much more than cars. It’s the culmination of concerns about fossil fuels, climate change, and affordable transportation. Justin Nelson loves the speed and ease of maintenance of EVs, too. While the future is uncertain, Nelson believes EVs hold a lot of promise, both for our everyday lives and for investments.
While Justin Nelson won’t ditch his gas-powered classic vehicles any time soon, he predicts a future where EVs reign supreme. “People will stop making manual transmission cars, where it’ll just be a small thing for collectors who really enjoy that experience. Not a lot of people who know how to drive them anymore,” he predicts.
