This week in our Hypergrowth Investing podcast, we’re looking at quite possibly the disruption of the decade — the “Electrification of Everything.”
Electric vehicles, clean energy and energy storage, and eVTOLs (electric vertical takeoff and landing aircraft).
You’ve probably heard me talk about each one of these themes at one point or another, but they demand to be viewed through a wider lens. Up first, EVs.
With lithium prices on the rise yet again, investors are asking the question: Is this a major headwind for EV stocks?
Ultimately, supply chains are improving, and lithium supply is growing – there are more mines being built and more money being dedicated to the space. Indeed, over the next one to two years, lithium supply will expand, and that will help prices to move lower.
Beyond lithium prices, we’re seeing a lot of positive developments in the EV space. Mercedes-Benz (DMLRY) just announced plans for a long-haul electric delivery truck – which also means we’ve made some impressive strides in EV battery tech. And GM (GM) is investing nearly $500 million in a stamping plant to be used for EV production.
The EV stocks that we’re most excited about? The companies beginning significant production ramps into 2023.
Another space that we love – and whose stocks have been absolutely soaring lately – is the energy storage industry.
In fact, if there were one sector to stay bullish on over the next 12 months, regardless of the macroeconomic backdrop, it’s energy storage. Population growth, urbanization, and digitization are creating a demand for energy that we don’t have the supply to meet. We need more energy.
Most think it should come from more oil and gas, more solar and wind, more nuclear, maybe hydrogen. But the thing holding us back, especially on the clean tech side of things, is energy storage. So, this is a space that’s due for massive growth in the months and years ahead.
We love innovative tech that works to solve real-world problems. And right now, energy storage systems are putting on their red capes and saving the day. Because of that, investment in the space is growing exponentially.
And one of the major catalysts for this expansion is the U.S. Inflation Reduction Act. That includes a first-ever investment tax credit (ITC) for standalone energy storage units. Those ITCs are what allowed solar panel construction to boom in the 2010s – and for solar stocks to rocket during that time. And now ITCs are doing the same thing for energy storage. We really could not be more bullish on this space.
When we talk about EVs, we’re usually talking about cars. But with electric aircraft buzzing around in the news, will that be the next big sector to keep an eye on?
When it comes to shorter commutes, we think eVTOLs make total sense. And the news about Air Canada’s eVTOL order means this megatrend is really “taking off” (ba-dum-tss).
When it comes to transportation, there are great short- and long-haul options. Need to go to the grocery store? You’ll hop in your car and ride over. Have to travel cross-country? You’ll catch a flight at the airport. But what about medium-haul transportation? We think eVTOLs will fill that void very well.
And though this “flying car” future might seem ages away, most eVTOL makers plan to commence operations in 2024. That’s just a little over a year away. We’re fast-approaching the start of a breakthrough transportation medium that could revolutionize the way we travel. Now is the time to hop on board with eVTOL stocks.