Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

I Walked into the Mercedes Dealership…

Economics / Motoring Mar 16, 2023 - 09:35 PM GMT

By: Submissions

Economics By Chris Wood : I couldn’t believe what I saw at the Mercedes dealership… 5% is the magic number… The simplest way to profit from the EV boom…

  1. I walked into a Mercedes shop in New Orleans the other day and was shocked…

All I saw were electric vehicles (EVs). Rows and rows of them.

I had to walk all the way to the back of the store to check out the “old school” gas-powered models.



My estimate is seven out of 10 cars in the shop were electric.

And the way the trend is going, it won’t be long before gas cars are considered “classic.”
  1. America has finally hit its EV “tipping point”…

It took a long, long time. Tesla (TSLA) sold its first EV way back in 2008.

As recently as 2019, EVs only accounted for a tiny 1.4% of new car sales in the US.

But last year, EV sales surpassed 5% of all new car sales in America.

That’s important because 5% is often the tipping point that takes a newer technology from obscurity to widespread adoption.

According to Bloomberg, after Norway hit 5% EV adoption in 2013, the floodgates opened. Today, eight out of 10 new cars sold in Norway are electric.

China surpassed 5% in 2020. Today, its EV sales account for 19% of new car sales.

The same kind of boom is happening in many other countries, like the UK, Switzerland, and Iceland.

It’s about to happen here in the US, too. Bloomberg estimates EVs will represent half of all new car sales in the US by 2030.

  1. What’s the best way to profit from this disruption?

When most people think EVs, they think Tesla.

A decade ago, Tesla was a $4 billion company. Now, it’s the world’s seventh-largest, valued at roughly $600 billion. It’s handed investors 15,000% gains since 2013.

Tesla pioneered high-performance EVs. And it remains the world’s largest EV producer to this day.

But is it the best stock to profit from the EV boom?

Probably not. Ford, Chevrolet, Toyota, Mercedes… Every legacy carmaker is offering EVs now. Not to mention competition from EV startups like Rivian (RIVN)Lucid (LCID), and Nio (NIO). Rumors have it even Apple (AAPL) is working on an EV.

It’s anyone’s guess which of these companies will come out on top 10 years from now.

So why take the risk?

Especially since there’s a simpler way to profit off the EV megatrend...

  1. You want to own the company fueling most of the EVs driving on American roads today…

When you pop the hood on an electric car, you won’t find an engine. You’ll find a motor powered by batteries.

Every EV needs a high-quality battery... and Bloomberg estimates demand for EV batteries in the US will surge by 15X by 2030…

Source: Bloomberg

These batteries have to be made out of lithium.

Lithium batteries are the only ones efficient enough to power EVs. They’re lightweight, charge faster, and last longer than any other type.

With every automaker going electric, demand for lithium will continue to skyrocket. Tesla’s Model S, for example, has roughly 140 lbs. of lithium inside its battery.

And this is great for the world’s largest lithium producerAlbemarle (ALB).

  1. Albemarle controls over a quarter of the market and owns the purest lithium mines on the planet…

When carmakers like GM, Ford, and Tesla need boatloads of battery-grade lithium, they turn to Albemarle.

The miner sold over $5 billion worth of battery-grade lithium in 2022. It was its best year yet.

In fact, Albemarle’s lithium sales last year nearly quadrupled compared to 2021.

With EVs entering the “mass adoption” phase, now’s a great time to buy shares of ALB if you’re a long-term investor.

P.S. I don’t own an EV... yet. I’ve test-driven a few Tesla Model Ss, and they’re awesome. But I’m still waiting until the EV charging infrastructure gets a lot better.

Plus, I still love the roar of my bi-turbo V8 Mercedes.

-

To get more ideas like this sent straight to your inbox every Monday, Wednesday, and Friday, make sure to sign up for The RiskHedge Report, a free investment letter focused on profiting from disruption.
Expect smart insights and analysis on the latest breakthrough technologies, the big stories the mainstream media isn't reporting on, and much more... including actionable recommendations.
Click here to sign up.

By Chris Wood

http://www.riskhedge.com

© 2022 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - 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