Stock Market

Let me start this issue by stating the obvious: Electric vehicles are going to take over the world.

Source: Sopotnicki / Shutterstock.com

That’s an inevitability.

Consumer demand is shifting so that most prospective car buyers today want an EV…

Laws are changing to support the adoption of EVs…

Technology is improving so that these cars can last longer and drive farther…

Costs are falling so that EVs are now cheaper than gas-powered cars…

Supply is migrating so that every automaker is pouring all of their resources into launching new EVs…

As the old saying goes, all the stars have aligned. The EV Revolution is upon us.

To contextualize the size of this shift with numbers, our modeling suggests that about 10% of all new car sales in 2021 will be EVs. That’s up from about 5% in 2020, and 3.5% in 2019. Back in 2016, that number stood at just 0.3%.

We predict that the EV penetration rate will soar toward 80% by 2040, implying EV volume growth of ~2,000% over the next 20 years.

Source: InvestorPlace

Source: InvestorPlace

With so much growth potential over the next two decades, the EV industry offers investors multiple excellent long-term investment opportunities. We believe investors stand to make a lot of money over the next decade by simply buying and holding high-quality EV stocks.

However, we believe most of that money will be made in a single year: 2022.

To understand why, we need to understand how technological megatrends evolve on Wall Street.

Typically, on Main Street, world-changing technological trends take a long time to actually change the lives of people like you and me. E-commerce, for example, emerged in the late 1990s, yet didn’t become a household ubiquity until the 2010s. Streaming TV first emerged in the early 2010s, yet it wasn’t until the back-half of that decade that households started to cut the cord in bulk.

On Main Street, technological trends take years and sometimes even decades to play out.

But on Wall Street, they tend to happen in a year or less.

Wall Street is a giant discounting machine. Investors look to the future, discount that future back by some discount rate, and incorporate those projections into their calculations of a company’s present value.

To that end, Wall Street doesn’t want for change to happen – it acts before change happens.

So, as soon as e-commerce emerged in the late 1990s, investors acted on the coming E-Commerce Revolution. They gobbled up Amazon.com (AMZN) stock. In 1998 alone, that stock soared 967% in a single year!

Lather, rinse, and repeat for the Streaming TV Revolution. As soon as Wall Street saw the writing on the wall that streaming TV was going to take over the world, investors swarmed into Netflix (NFLX) stock. It rose 297% in 2013 alone!

To be sure, Amazon stock has soared way higher since 1998, and Netflix stock has soared way higher sine 2013.

But since 1998, Amazon stock’s best annual performance (+178% in 2003) doesn’t even come close to its 967% gain in 1998. And since 2013, Netflix stock’s best annual performance (+134% in 2015) is less than half of its 297% gain in 2013.

In other words, these stocks had their best years – by far – in the first innings of their technological revolutions.

The same will be true for EV stocks.

We feel strongly that 2022 will be for EV stocks what 1998 was for Amazon, and 2013 was for Netflix.

The U.S. government just passed a $1.2 trillion infrastructure bill which includes billions of dollars for EV tax incentives and EV charging infrastructure. Another $1.75 trillion bill is on the table, which includes tens of billions in further EV investments.

The world’s leading countries just wrapped up at the COP26 Summit, where they’ve all jointly agreed to bolster their efforts in the fight against climate change. A lynchpin therein is boosted support for EV adoption globally.

For the first time ever in 2022, the median price of an EV with at least 200 miles of driving range will fall below the median price of a gas-powered car.

Also for the first time ever in 2022, every major automaker – new and old – is going to launch a suite of new EVs, giving consumers more choice than ever before at the dealership.

Again, folks, all the stars have aligned. Next year is going to be “The Year EVs Took Over the World.

It’s also going to be the year that EV stocks soared like never before.

To help investors position themselves for this coming electric vehicle boom, I just gave a presentation to an exclusive group of 60 people at the landmark Hudson Theater in Southern California.

In that presentation, I talked about why EVs are the future… why 2022 is going to the biggest year yet for the EV Revolution… what EV stocks are set to soar next year… and, perhaps most critically, I talked about one tiny $3 stock that could end up being the EV sector’s biggest winner in 2022 and beyond.

Right now, I’m going to pull back the curtains on that event and give you a front-row seat to learning about the small $3 stock at the epicenter of the biggest technological revolution of our lifetime.

Click here to watch that presentation.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Articles You May Like

Top Wall Street analysts recommend these dividend stocks for higher returns
My Top 10 Stock Market Predictions for 2025
Quantum Computing Revolution: The Gargantuan Opportunity Investors Shouldn’t Ignore
Nvidia sees ‘remarkable’ influx of retail investor dollars as traders flock to AI darling
Starboard sees an opportunity to create value at Riot Platforms amid growth in hyperscalers