Electric cars own the future. But here are 4 traditional automakers that could be winners

Published Wed, Aug 4 20219:15 PM EDT

Electric vehicles are benefiting from the green energy boom, and investors have largely focused on Chinese pure EV players. But Morningstar identified four traditional automakers it said were best poised to ride the trend. The firm estimates that by 2030, 30% of all cars sold globally will be electric vehicles, surging from just 3% in 2020. By 2025, Morningstar predicts EVs will become cheaper and perform on par with internal combustion, traditional vehicles. It said EV adoption will rapidly jump in the second half of this decade as charging infrastructure gets built throughout China, Europe and the U.S. "Automakers are announcing substantial increases to their EV portfolios for the long term, and EV mix will grow over the long term to at or near 100% of industry sales," wrote Seth Goldstein, an equity analyst at Morningstar. "This massive growth creates potential investment opportunities throughout the EV supply chain," he wrote in a note dated July 27. Leading electric car company Tesla was among the automakers that Goldstein named as being best positioned to take advantage of the sector's rapid growth. Morningstar's other four picks were all traditional automakers: 1. BMW This German automaker has premium passenger vehicle brands such as BMW , Mini and Rolls-Royce. It also has 14 "electrified" models, which accounted for 8% of its total sales volume last year, according to Morningstar. By 2025, BMW plans to have 25 such models, of which 12 will be EVs and 13 will be plug-in hybrids — a vehicle that runs on both electricity and fossil fuels. BMW has set a goal for EVs to make up 50% of its global sales volume by 2030. 2. Ford After previously focusing on hybrid models, this American brand is now shifting its attention to EVs. Goldstein said Ford's Mustang Mach-E "to us looks like a real competitor to a Tesla Model Y." "The 2022 launch of the F-150 Lightning , an EV version of Ford's most profitable vehicle platform, shows Ford is serious about EVs," he added. 3. General Motors This year, the American automaker said it aims to sell only zero-emission vehicles by 2035 . General Motors also plans to invest $35 billion over five years into EV and autonomous vehicle development. By the end of 2025, it plans to launch 30 EVs and with a goal of 1 million EV sales annually. It is also selling its proprietary battery technology to other car firms such as Honda, says Goldstein. 4. Volkswagen Morningstar noted that 3% of the German automaker's 2020 sales came from EVs. Volkswagen is spending 46 billion euros over the next five years to "electrify" its portfolio of vehicles, Morningstar's Goldstein says.

Attendees of the Chicago Auto Show on July 15, 2021 get into a Ford Mustang Mach-E for a test ride in the electric crossover outside of the McCormick Place Convention Center.

Michael Wayland / CNBC