Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Asia Leading the World in Electric Cars, How to Profit

Companies / Investing 2010 Sep 15, 2010 - 09:14 AM GMT

By: Tony_Sagami


Best Financial Markets Analysis ArticleIn 2009, the world bought 61 million cars and almost all of them were powered by internal combustion, gasoline engines. That’s going to change in a big way.

J.D. Power predicts that the world will buy 2 million electric vehicles by 2020. The researchers at HSBC are shooting much higher and expect the world to buy 9 million EVs (electric vehicles).

When it comes to hybrid and electric cars, the Asians are rapidly becoming the global leaders in technology and sales.

Korean auto giant Hyundai unveiled its first all-electric car last week, the BlueOn, which combines an efficient electric motor with the newest generation of lithium-ion polymer battery technology.

The BlueOn can reach speeds as high as 81 miles per hour and can travel up to 80 miles.

The car has two charging docks: One for household 220-volt outlets and a 380-volt industrial-strength power for quick recharging. The household plug takes six hours to fully charge, while the industrial charge can deliver an 80% charge in 25 minutes.

Hyundai expects to produce 2,500 units by the end of 2012, but the Korean government is committed to helping (a euphemism for subsidies and tax breaks) its automobile producers make one million electric cars by 2020.

Nissan, Honda, Mitsubishi, and Toyota have already rolled out all-electric cars. Nissan forecasts that all-electric vehicles will reach 10% of the global auto market by 2020.

The Nissan Leaf, a four-door hatchback due in showrooms late this year, will have a base price of $32,780, but that cost will drop to roughly $25,000 once a $7,500 electric vehicle tax credit is figured in. The price tag puts the Leaf, which can go up to 100 miles on a single charge from a home outlet, within reach of mainstream car buyers.

The Asians are rapidly becoming the global leaders in technology and sales of hybrid and electric cars.
The Asians are rapidly becoming the global leaders in technology and sales of hybrid and electric cars.

The Mitsubishi i-MiEV (Mitsubishi Innovative Electric Vehicle) will go on sale in the U.S. in 2011 and will be priced at less than $30,000 prior to the $7,500 federal tax credit. The i-MiEV is smaller than a MINI Cooper and has been described as a “glorified golf cart.” It does, however, reach speeds up to 80 mph and can go up to 75 miles on a single charge.

Honda has been primarily focused on hybrid vehicles, which make up 6% of its sales now, but will introduce a pure non-gasoline car by 2012. Honda is betting on hydrogen fuel cells instead of battery-powered electric cars, so I expect Honda to either become the kingpin or flop of the green car market.

The Toyota Prius, with more than 1 million cars on the road, is the most successful gasoline/electric hybrid car on the market. So many experts expect great things from the all-electric Toyota IQ. The IQ won’t be available in the U.S. until 2012, but Toyota will undoubtedly become a major force if not leader of the EV marketplace.

Pink Sheets: A daily publication compiled by the National Quotation Bureau with bid and ask prices of over-the-counter stocks. Unlike companies on a stock exchange, companies quoted on the pink sheets system do not need to meet minimum requirements or file with the SEC. The name “Pink Sheets” comes from the color of paper the quotes were historically printed on.

Electric cars are here to stay and some automakers are going to make a bundle by delivering the most effective and lowest cost EV to the marketplace. My money is on the Asian automakers and you can invest in any of the above five.

Electric cars are here to stay and some automakers are going to make a bundle delivering them to the marketplace.
Electric cars are here to stay and some automakers are going to make a bundle delivering them to the marketplace.

Toyota (TM) and Honda (HMC) are traded on the New York Stock Exchange while Hyundai (HYMLF.PK), Nissan (NSANY.PK), and Mitsubishi (MMTOY.PK) are available on the over-the-counter Pink Sheet market.

Many investors aren’t familiar or are uncomfortable with the Pink Sheet market. Any stock trading on the Pink Sheets falls into one of these two categories: (1) companies that don’t meet the listing requirements of the New York, American or Nasdaq stock exchanges or (2) companies that are unwilling to jump through the regulatory hoops and filings that accompany listing on the major exchanges.

For foreign companies, getting listed on the NYSE or Nasdaq means that they have to have a completely separate American legal department and a completely separate accounting department. A lot of major companies — like Hyundai, Nissan, and Mitsubishi — have no interest in setting up a duplicate accounting and legal department just to be listed on a U.S. exchange.

That’s why a lot of big, household-name foreign companies — like Nintendo, Nestle, and Volkswagen — are traded on the Pink Sheets.

The biggest problem for most of the 15,000 stocks that trade on the Pink Sheets is a pathetic lack of trading volume. Many of the Pink Sheet stocks don’t trade for days or even weeks at a time and suffer from Grand Canyon-sized bid/ask spreads. It is pretty hard to make money on a stock when the market maker is killing you for a 10% to 25% bid/ask spread on both sides of the trade.

That is why I strongly recommend you always use a “limit” order whenever buying and selling on the Pink Sheets.

On the other hand, all three of those Asian automakers are available on their home exchange in Japan and Korea. In general, you’re better off buying in a company’s home market, but I’ve found that a lot of U.S. investors are unwilling to buy on a foreign stock exchange.

Which of the five Asian automakers do I think will win the EV race? At this time, I do not own any automakers, foreign or American, but I believe the head of the class of the auto industry is Toyota. I’ve traveled ALL over Asia and the one car company that I see in every country I go to is Toyota.

Toyota was a $130 stock as recently as 2007, but is now in the $70 range. That’s a big haircut, but I believe the global economic slowdown will take all auto stocks, including Toyota, down a bit further. Look for Toyota to re-test its 2009 lows around $60, at which price I would become very interested.

Who knows? Maybe you’ll make enough off of your Toyota stock to buy yourself a shiny new electric car.

Best wishes,


This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in