Opportunities in EVs and Charging for 2020
Renewable energy is my main investment focus for 2020. This includes companies in the electric vehicle supply chain.
For example, look no further than the 21st century EV pioneer. Back in 2013, Tesla (Nasdaq: TSLA) was out of favor and cheap.
At $47 per share, it was selling for peanuts. Analysts were predicting its quick demise.
But here is what I wrote to my readers in April of that year: “Investors who want a pure play in the EV space might do well to consider investing in a few shares of Tesla Motors.
“Given the enthusiasm for the company’s cars and its rapid growth rate, you might be able to afford one yourself in a few years just by selling the shares you purchase now.”
It turns out that April 2013 was the precise month when Tesla’s stock went from three straight years of flatlining to explosive growth. Every $1,000 invested back then would be worth $8,238 today.
That would have turned a $10,000 investment into $82,685. That’s more than enough to buy a decked-out Model 3 today.
A few of my readers actually bought Teslas with their gains. But here’s the exciting thing: I think it’s going to happen again.
Tesla’s Crystal Ball
Let’s say you purchase $10,000 in Tesla shares today. I believe you could buy a Tesla with your gains in as little as five years.
Consider this: Over the next five years, Tesla will have more revenue streams, including sales from pickup trucks, semitrucks, Model Y cars and solar roofs.
By 2025, most EVs will have 400-plus mile ranges. Tesla is almost there today with a 370-mile range for its Model S.
It wouldn’t surprise me at all if Tesla has 500-mile range batteries by then. It’s the clear energy density leader when it comes to EV battery packs.
Charging currents continue to rise too. In five years’ time, EVs will be able to be recharge in minutes.
Prices will be even lower than they are today. And by 2025, I believe the number of charging stations will grow by a factor of 10 or more.
A Golden Hour for EV Manufacturers
As EV demand continues to rapidly increase, EV manufacturers are finding themselves able to sell every EV they can deliver. And Tesla is just the tip of the iceberg.
Most automakers have more than one EV in the works. Volkswagen has announced the electrification of all of its vehicles over the next decade.
And light-duty EVs are just one part of the widespread electrification of our transportation system. Medium- and heavy-duty electric truck and bus sales are rapidly increasing.
There could be 5 million of them on the world’s roads by 2030. Half of the world’s buses could be electric in just five years.
Though it’s true that electric buses and trucks cost more than their diesel-guzzling cousins, they have a much lower total cost of ownership.
Major cities, including Chicago, Dallas, Louisville and Philadelphia, are already running EV transit buses. California is spending $70 million on 200 electric school buses.
About 60% of urban governments already have green vehicle buying policies in place.
All of these numbers are just going to skyrocket from here. It presents a great opportunity for investors in the EV and charging sector.
Savvy, forward-thinking investors definitely want to have an exposure to this fast-moving area.
The EV Semitruck Race Is Heating Up
June 17, 2020