Electric vehicle (EV) stocks invade the world. You know. I know that. The market knows it. We all know that.
Consumers want to drive electric vehicles these days, 60% of potential car buyers want to buy an EV. Lawmakers also want you to drive an electric vehicle, as more than 200 cities around the world have a â100% clean energyâ goal for 2030, 2040 and 2050.
In addition, these cars run farther, last longer, get cheaper and get much more, a lot more accessible. Oh, and not to mention, every automaker from Ford to Jeep to Rolls-Royce is launching new electric vehicles.
So I repeat: Electric vehicles are taking over the world.
It is not something that will happen tomorrow or in the next few years. It’s happening right now.
You’re here (NASDAQ:TSLA) has just delivered a record number of 241,300 vehicles in the third quarter of 2020. Chinese electric vehicle manufacturers Nio (NYSE:NIO) and Xpeng (NYSE:XPEV), both also reported record September delivery figures. Inquiries about electric cars in the UK recently hit record highs amid soaring fuel prices.
As a result, it looks like approximately 10% of all new car sales in 2021 will be electric vehicles, according to our modeling. This is up from around 5% in 2020 and 3.5% in 2019. In 2016, that number was only 0.3%.
In other words, in just five years, we have gone from 0.3% global penetration of electric vehicles to 10%. It’s huge growth – and things are just beginning.
With changing demand and legislation, as well as increasing supply, improving technology and lowering costs, we expect the penetration rate of electric vehicles to reach 80% by 2040, which implies Electric vehicle volume growth of around 2,000% over the next 20 years.
With such growth potential over the next two decades, the electric vehicle industry offers investors multiple excellent long-term investment opportunities.
And the time to go âall inâ with electric vehicle stocks is at present.
You seeâ¦ due to external macroeconomic noise from inflation, the Fed and Treasury yieldsâ¦ EV stocks struggled in 2021.
I am currently looking at the largest electric vehicle companies by market capitalization. You got Tesla, Nio, Lucid Group (NASDAQ:LCID), Xpeng, Li Auto (NYSE:LI), Arrival (NASDAQ:ARVL), and Fisker (NYSE:RSF) in the top seven.
At current prices, Tesla is 12% below its early 2021 highs. Li Auto is at 28% of its highs. Xpeng is 37% below its highs. The finish is 41% on its peaks. NIO is at 44% of its highs. Fisker is at 48% of its peaks. Lucid is at 58% of its peaks.
Get the point? These stocks have been beaten – and now is the time to buy them.
Because 2022 is going to be a pivotal year for electric vehicles.
We suspect that the $ 1 trillion infrastructure bill and $ 3.5 trillion budget reconciliation packages will be passed, providing huge legal tailwinds to the electric vehicle industry via expanded subsidies, credits. tax and more charging infrastructure for electric vehicles.
At the same time, we believe that the supply chain shortages that impacted the availability of chips to make electric vehicles will ease in 2022, as the impacts of Covid-19 on manufacturing capacity will become less serious.
Meanwhile, you have a ton of new EVs hitting the market.
Lucid is on track to deliver thousands of its ultra-premium Lucid Air in 2022. NIO is expanding in Europe for the first time. The Fisker Ocean is expected to hit the market at the end of 2022. BMW and Audi will launch a whole new fleet of premium electric vehicles in 2022. The Rivian pickup will make waves. Canoo’s lifestyle van is expected to begin deliveries.
There is a lot on the electric vehicle record in 2022.
And that’s why we’re hammering the table about EV inventory right now. We believe investors have a generational opportunity to buy high-quality EV stocks at a huge discount before jumping into a huge rush in 2022 and beyond.
Alas, the million dollar question is: Which VE stocks should you buy?
For this, we turn to our flagship investment research product – Innovative investor – where we invest in the world’s most innovative companies, disruptive megatrends and disruptive technologies.
Of course, electric vehicles fit that description perfectly. But, in keeping with our high standards for stock picking, we’re not going to buy all available EV stocks. Indeed, we believe that most EV companies will fail because the industry cannot support dozens of winners.
Instead, we buy the highest quality EV stocks with the highest chance of long-term success and rate our subscribers with returns of 100%, 200%, and over 300%.
To find out which EV stocks are on our âbuyer’s radarâ today, click here.
At the time of publication, Luke Lango had (directly or indirectly) no position in any of the stocks mentioned in this article.