[Editor’s note: “The Global EV Disruption Is Your Million-Dollar Opportunity” was previously published in November 2021. It has since been updated to include the most relevant information available.]
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 internet rapidly disrupted how people across the globe worked, played, and communicated.
For many, it was a scary time. Change is never easy. For many more, it was an exciting time. 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 the emerging titans of disruptive industry. Think Amazon (AMZN), when it was a $438 million company in 1997…
It’s a $1.2 TRILLION company today – representing a whopping 273,000%-plus return.
That means a mere $1,000 investment in Amazon in 1997 would be worth more than $2.7 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 amid an enormous disruption as big as the internet — the shift toward electric vehicles.
Electric Vehicles Are Transforming Transportation
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. Despite this, by the end of 2020, there were just 86,000 quarterly EV sales.
But the industry has since kept soaring to new heights. In July 2022, for example, global EV sales rose more than 50% year-over-year!
And compared to our modeling, that’s nothing. Multiple game-changing trends are converging and setting the stage for EVs to take over the world. Indeed, the data implies a jaw-dropping EV volume growth of ~2,000% over the next 20 years.
- Demand is shifting. Today’s consumers are more aware than ever before of climate change. And they’re increasingly aligning their purchasing decisions to “go green.” According to a recent national survey from Consumer Reports, 71% of Americans have the desire to drive an EV. And that number is going up every single year.
- 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. Not to mention the recently passed Inflation Reduction Act, which is allocating nearly $400 billion to climate-friendly tech development.
- 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 even fetching over 500 miles of range). Even further, gas cars aren’t increasing their driving ranges. But EVs are – and rapidly. So, by 2030, EVs will be able to drive significantly farther than gas cars.
- 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, 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.
- Supply is pivoting. For years, auto industry incumbents were asleep at the wheel when it came to the EV revolution. But that’s not the case anymore. Every major automaker in the world – from Ford (F) to GM (GM) to Bentley – is making an all-out blitz into the EV category. And it will amount to an unprecedented surge in EV supply over the next decade.
The future couldn’t be any clearer.
EVs are 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.
The Final Word on the EV Revolution
Here’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 electric vehicles.
By 2030, it will become a globally ubiquitous, multi-trillion-dollar industry. But there are a lot of EV startups today, and the reality is that most 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.
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 are EV makers. Some are battery companies. And some are charging companies. The common denominator? They’re all disruptive innovators.
We’re talking companies that could be the next Tesla (TSLA) – 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 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.