Last week, we talked about how, even though the artificial intelligence megatrend is the most powerful and popular one right now, you shouldn’t kick other megatrends to the side in its favor.
And the electric vehicle (EV) megatrend that’s been growing for the past few years is one of my favorites.
While I usually go for the “picks and shovels”-types of plays in the EV space, I do have an automaker that I see coming out on top… even going so far as to dethrone the “king” of EVs, Tesla Inc. (TSLA).
Here’s why…
A Tale Of Two Americas
A lot of people don’t realize it, but America has been divided into two groups for the last 30 years or so. Now when I talk about two group, I’m not talking about rich or poor; instead, these two groups revolve around those who know how to leverage new technologies… and those who don’t.
The 1% make up the first group: the ones who managed to take advantage of the internet’s wealth-building opportunities… while the 99% make up the second group. Right now, there’s an incredible opportunity for everyday Americans to ascend to the first group… It’s all thanks to a brand-new technology silently taking the country by storm.
A New King
My top pick in the EV space is Volkswagen AG (VWAGY).
VW often stands atop the champion’s podium as the world’s largest auto manufacturer. The giant German company jockeys with Toyota Motor Corp. (TM) year by year for the top spot, whether measured by auto deliveries or revenues.
In 2020 and 2021, for example, Toyota sold more cars, but VW produced larger revenues. In 2019, VW sold more cars than Toyota and produced larger revenues.
Volkswagen Group owns the Volkswagen brand of automobiles, of course. But it also owns Audi, Porsche, Bentley, Bugatti, Lamborghini, Ducati, Scania, Seat, Skoda, and Man brands.
In all, VW’s 120 production plants produce and sell eight to 10 million cars per year in 153 countries… and they do so very profitably.
During the past 12 months, for example, VW posted gross earnings (EBITDA) of $56.3 billion and net income of $17.8 billion – and that’s with various supply-chain challenges, a war in Ukraine, and recessionary conditions worldwide.
You get the point. VW is one of the biggies.
But Tesla might be the sexiest EV company, which is probably the main reason its stock has been dazzling investors for so many years.
Even though Tesla shares have tumbled about 34% from their all-time high, they remain a whopping 782% above their 2020 low and still cling to a hefty $801-billion market value.
Let’s put the number in perspective, relative to Volkswagen…
Crushing Metrics
While it’s true that Tesla’s EV sales crushed Volkswagen’s in 2022 by nearly 130% (with Tesla reporting 1.31 million EV sales in 2022 and Volkswagen reporting 572,100), Tesla trails far behind Volkswagen on all other relevant metrics. The differences between the two automakers are enormous.
- Tesla sold 1.3 million cars last year. Volkswagen sold six times more than that.
- Tesla spent $1 billion on research and development (R&D) during the last 12 months. Volkswagen spent six times that amount.
- Tesla generated $81.5 billion in revenues in 2022. Volkswagen generated 3.5 times more.
And yet, Volkswagen’s market value is not 3.5 times larger than Tesla. On the contrary, Tesla’s market value is 11 times larger.
It is true that Tesla makes far more EVs than Volkswagen. But even on this metric, Volkswagen clearly shines brightly.
As every major car company on the planet designs new EV models and begins delivering them into the marketplace, Tesla’s market share will shrink, perhaps rapidly.
But there’s no need to fret about Tesla’s future, when the EV sector is offering so many other ways to play the EV trend.
I expect VW to continue outperforming Tesla in 2023 and beyond – by making a market-beating advance, as Tesla’s lavish valuation continues to shrivel.
On Friday, we’ll talk more about Volkswagen’s prospects… and why it could grow to dethrone other EV automakers.
Regards,
Eric
P.S. I was the first person to publicly release footage of Elon Musk’s secretive AI project – what he calls “Project Omega.” That was months before the AI boom went exponential. I’ve also given my readers a chance to see gains of 1,000% or more – 41 different times.
Just $10,000 into only one of these recommendations could’ve made you a millionaire. Now I believe the stage is set for AI once again. Only this time, we’re on the verge of seeing an AI panic unlike anything you could ever imagine.
“Project Omega” is entering its final phase, and Eric is warning everyone to prepare. In this video, I share my 1,000% AI blueprint for turning the coming panic into 1,000% profit potential in the days ahead.
