Transportation Trends: The Bigger the Change, The Bigger the Gains

What’s coming is going to be powerful … and fast.

a bush cut out in the shape of a car with a plug attached to it and a charger symbol in the center implying it's an electric vehicle
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If you understand what’s about to happen, you could make a tremendous amount of money in a short time.

Some of the biggest industries on Earth are about to undergo a massive transformation that will create a historic reordering of the global economy.

Think of it as a “perfect storm” of change that’s just on the horizon. And while this storm may be terrifying to some, I hope you’ll see it as a huge opportunity.

As the 1990s came to an end and historians started writing books on the 20th century, one thing was clear …

The 20th century was the age of oil.

Mankind totally reordered the global economy around a substance that, when refined a certain way, explodes when exposed to flame.

We didn’t have the interstate highway system. We didn’t have the suburbs. We didn’t have parking lots or gas stations or the “car culture” that became a defining aspect of 20th century life.

But thanks to petroleum refining innovations in the late 1800s, the use of cars and gasoline exploded all over the world. Cars gave us a much faster and much cheaper way of getting around … and we began a century-long period of reordering the entire global economy around oil.

We spent trillions building highways, pipelines, the suburbs, refineries, gas stations, parking lots, and oil platforms. We launched gigantic, world-spanning mining and manufacturing industries devoted to the production of steel, rubber, and other raw materials required to produce cars. We overhauled our cities to accommodate cars and trucks.

Oil’s awesome wealth creation power allowed penniless families to amass dynastic fortunes … and to this day, the automobile and oil industries are among the largest on Earth. They control nations. The value of assets under their control runs into the trillions of dollars.

And these industries are about to get totally upended.

Think of the transportation industry like a large dining table that took decades and trillions of dollars to set up. The tablecloth is about to get yanked out.

During this time of epic change, huge, seemingly dominant companies will go out of business very quickly. Longstanding billion-dollar brands will become worthless virtually overnight. New companies will spring up in their place … and make their shareholders very wealthy.

One of the Most Dominant Investment Themes of the Decade

The “old” auto industry is about to get demolished, and what I call the four horsemen of its apocalypse — the four major disruptive changes hitting the industry at the same time — are creating this “perfect storm” of change and opportunity:

  1. The decline of the internal combustion engine. Look for hypergrowth of battery-powered electric vehicles (EVs).
  2. The rise of ride sharing services. The traditional concept of car ownership is about to change.
  3. The rise of autonomous vehicles (AVs). Self-driving cars have gone from a science fiction fantasy to actually operating in the real world.
  4. The growing importance of “tech” in cars. The “in car” experience of the future is going to change dramatically.

As a result, powerful new carmakers, component makers, and software makers will take their market share and deliver massive rewards to shareholders.

That’s why this mega-trend that I call “Transportation 2.0” is one of the most dominant investment themes you’ll see over the next decade.

Now, when I talk about building wealth in technology stocks, I often say, “The bigger the change, the bigger the gains.”

Let’s take just a glimpse at the big change coming with electric vehicles …

The Energy Industry Administration calls for EV sales to more than triple to 6.5 million units by 2024. ARK Investment Management is even more bullish, predicting 37 million EVs will be sold in 2024. That would be an amazing 79% compound annual growth rate (CAGR) and result in full-year sales of $1.1 trillion.

Even if EV sales increase to 20 million units in the next few years, it is an easy 10X opportunity for investors.

Buyers will increasingly adopt EVs because they will save fuel costs. They will be better for the environment. And … get this … they will get cheaper and cheaper.

Who ever heard of car prices going down?

Electric vehicles currently cost more than gas-powered vehicles, but not for long. In just two years, a major milestone is expected to be hit when an average EV will be more cost effective than the average gas-powered vehicle. By 2024, ARK Investment Management predicts EV prices will average $17,000 while a Toyota Camry remains constant at $25,000. At that point, it’s practically a no brainer.

How can EVs get cheaper? Ongoing innovation and improvements to the car’s battery.

A few years ago, the battery made up about 57% of an EV’s cost. By last year, that percentage fell to 33%. And by 2025, it is projected to be just 20% of the cost of the vehicle as they get smaller, cheaper, lighter, and better at holding a charge.

There is no denying that vehicles in the future will be powered by next-generation batteries rather than the old school internal combustible engine. This is a perfect example of how the MORE a technology changes the world for the better, the MORE revenue it will generate … and the BIGGER the gains will be for investors.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2020/08/next-gen-batteries-the-bigger-the-change-the-bigger-the-gains/.

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