When it comes to identifying next-generation breakthrough investments that could rise 100%, 200%, 500%, or more, I always come back to one saying.
Where there’s disruption, there’s opportunity.
Case-in-point: the internet.
Throughout the 1990s, the emergence of the Internet rapidly disrupted how people across the globe worked, communicated and played.
For many, it was a scary time. Change is never easy. For many more, it was an exciting time, as the Internet was unlocking a new world of possibilities.
But… for investors… it was an opportunity.
Specifically, it was a once-in-a-decade opportunity to invest early in emerging titans of the internet industry. Like Amazon (NASDAQ:AMZN)… when it was a $438 million company in 1997…
It’s a $1.8 TRILLION company today – representing a whopping 365,000%-plus return.
That means a mere $1,000 investment in Amazon in 1997 would be worth more than $3.6 million today.
Need I say more?
Where there’s disruption, there’s opportunity – and the bigger the disruption, the bigger the opportunity.
Right now, we are on the cusp of an enormous disruption as big as the internet… and that’s the shift toward electric vehicles.
Long story short, the world’s transportation network is rapidly being electrified. This change is nothing new. Electric cars have been around for over a decade. So far, they’ve made a dent in the market. It looks like in 2021 that electric vehicles (EVs) will account for about 10% of all new car sales.
That’s a sizable number. But nothing huge considering, again, EVs have been around for a decade.
According to our modeling, though, that 10% number is about to jump to 80% over the next two decades, implying jaw-dropping EV volume growth of ~2,000% over the next 20 years, as multiple game-changing trends converge to set the stage for EVs to finally takeover the world.
- The demand is shifting. Today’s consumers are more aware than ever before of climate change, and are increasingly aligning their purchasing decisions to “go green.” As a result, over 60% of prospective car buyers in the U.S. today want an EV – and that number is going up every single year.
- The laws are changing. Governments are also more aware than ever before of climate change, and are increasingly enacting legislature to promote adoption of “green” technologies. More than 200 cities and counties across the world have a “100% clean energy” target for 2030, 2040, or 2050 – while districts on the cutting edge of green tech (like California and New Jersey) are outright banning gas car sales after 2035.
- The tech is improving. EVs used to be significantly limited by driving range. Thanks to major technological improvements on the battery front, that’s no longer true. The average range of an EV has increased 140% since 2011, with a fully-charged EV now getting as much range as a gas car at 300-plus miles (and some EVs even fetching over 500 miles of range). Even further, gas cars aren’t increasing their driving ranges. EVs are, and rapidly – so by 2030, EVs will be able to drive significantly farther than gas cars.
- The costs are falling. EVs also used to be significantly limited by costs. That is, they have traditionally been far more expensive than gas cars. Again, though, this is no longer the case. Average EV prices have dropped 70% since 2010, and are now largely on par with gas cars. Economies of scale and technological improvements will unlock further cost reductions, and by 2030, EVs will be substantially cheaper than gas cars.
- The supply is pivoting. For years, auto industry incumbents were asleep at the wheel when it came to the EV revolution. Not anymore. Every major automaker in the world – from Ford to GM to Bentley – is making all-out blitz into the EV category, in what will amount to an unprecedented surge in EV supply over the next decade.
The future couldn’t be any clearer.
EVs are on the cusp of fundamentally disrupting the entire multi-trillion-dollar auto market.
It’s one of the biggest disruptions we have ever seen in the past 50 years – and, by extension, it’s one of the biggest investment opportunities we have ever seen in the past 50 years, too.
The right investments in the EV sector will score investors 10X, 20X, even 30X returns over the next few years.
Note the emphasis above…
The right investments.
That’s the thing about disruptive megatrends. It’s not about just finding the right megatrend to invest in, but finding the right companies within that megatrend to invest in.
Some might argue that the internet runs counter to this. But, although the internet did turn into a globally ubiquitous, multi-trillion-dollar industry, you couldn’t just point, click, and buy the first internet startup you saw — most internet startups in the 1990s went under. Remember Pets.com? Or eToys.com? Or Boo.com? What about Webvan?
Yeah, there’s a reason you don’t. All failures. Only a handful of 1990s internet startups actually turned into enormous long-term winners, like Amazon.
The same will be true about the electric vehicle space.
It will turn into a globally ubiquitous, multi-trillion-dollar industry by 2030. But there are a lot of EV startups today, and the reality is that most of them will fail.
Only a handful will succeed – but those that do, will generate Amazon-like returns.
Unfortunately, most people don’t have time to spend countless hours researching arcane subjects that might lead to potentially profitable investments. That’s what we’re here for: to help you identify the right investments in the EV megatrend.
In our flagship investment research advisory Innovation Investor, we have scoured through the entire EV market, analyzed nearly every company in this space, and identified the best investment opportunities to capitalize on the enormous shift toward electric vehicles.
Some of them are EV makers. Some of them are battery companies. Some of them are charging companies. The common denominator? They’re all disruptive innovators.
We’re talking companies that could be the next Tesla – or bigger.
The research is already finished. The buy calls have already been made. All that’s left are the profits to be had from investors like you who take action.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.