Buy this stock of US electric vehicles before the “engine bans” start
Governments have been cracking down on emissions for decades now – this is nothing new. But fuel economy standards aside, they’ve left automakers more or less alone on this front.
Over the past year, however, regulators and lawmakers around the world have focused their attention on vehicles which, according to the World Resource Institute, produce between 20% and 25% of global CO2 and greenhouse gas emissions. .
And that’s a big deal because until now, regulation has always been the “missing piece of the puzzle” in getting the electric vehicle revolution off the ground.
In a way, it’s not that different from cryptocurrency or even cannabis; growth and profits have been good so far, but you know that serious the boom will start once the laws start to change.
And that’s exactly what’s happening in the electric vehicle space – a series of proposed laws and regulations set an expiration date for gasoline and diesel internal combustion engines.
It’s going to be a monster profit catalyst for the stocks of one of America’s most overlooked and aggressive electric vehicle makers.
And right now, the market correction gives us a beautifully reduced entry point…
The beginning of the end for internal combustion engines
As I said, electric vehicle growth has been okay so far, more than tripling between 2016 and 2020. And it’s hard to dispute the gains made in stocks like Tesla Inc. (NASDAQ: TSLA).
But the real The electric vehicle boom has not yet started, simply because of the widespread availability and low cost of internal combustion engines that we have had for over 100 years now.
But politics – and more importantly, the economy – change rapidly.
We’ve had small hybrid vehicles like the Toyota Prius and relatively inexpensive small electric vehicles like the Nissan Leaf for some time. But the Ford Motor Co.(NYSE: F) ‘s electric “Lightning” version of its market-crushing F-150 pickup sets the stage for a big change. After tax credits, the Lightning F-150 truck will be cheaper than its massively popular gas-powered stable mate.
And last week, I shared research with you that indicated that internal combustion engines could very well be a waste of money for automakers by 2030.
There is no going back from here.
We have also seen a global tsunami of new regulations and proposed regulations that would put electric vehicles in a much stronger position in the market.
Norway has joined 21 other countries in North America, Central America, Asia and Europe with the intention of phasing out the sale of consumer gasoline vehicles by 2025. The Union European Union with 27 members, the third largest economy on the planet, proposes a phase-out of all gasoline vehicles from 2035.
Technically, these “bans” aren’t really bans, they are emission reductions – 100% emission reductions, which would make it impossible or at least extremely impractical to sell vehicles with internal combustion engines.
In the United States, other than a commitment to move to a fully electric federal government fleet, there are no official plans for vehicle emission limits, but the pressure is mounting. At the state level, however, several states are pushing forward legislation to require an end to tailpipe emissions over the next several years.
If it’s not the writing on the wall, I don’t know what it is. Automakers – far more sensitive to their bottom line than politicians – can see it, and the smartest and most forward-thinking are heading towards the development of electric vehicles. and development of new battery technology. Some, like General Motors Co. (NYSE: GM), have decided to phase out ICE (Internal Combustion Engine) vehicles on their own, no matter what happens in the regulatory arena.
At the end of the day, ideology doesn’t have much to do with it – it’s about cold hard money. There’s just more of it in EVs from now on.
Expand your portfolio of electric vehicles with this company
Last week I recommended my favorite international electric vehicle manufacturer, NIO inc. (NYSE: NIO), poised to dominate the Chinese EV market, which is growing even faster than the EV sector in the US and Europe… for now.
But the American market for electric vehicles – which is already large – is going to be absolutely huge within 20 years; I firmly believe it. The Energy Policy Solutions think-tank predicts that up to 75% of new light-duty vehicle sales will be electric by 2050, but I think this projection is a bit conservative because it did not factor in the commitment. of the Biden administration for an all-federal electric fleet.
My favorite way to play in the U.S. EV market is Fisker Inc. (NYSE: FSR) – a “double game” about electric vehicles and the battery technology that powers them.
Old-school electric vehicle investors will remember Fisker’s previous incarnation, Fisker Automotive. In 2011, she produced the luxury hybrid Fisker Karma. The Karma was produced in very small numbers, less than 2,000 units, which sold for between $ 102,000 and $ 116,000, so it never really caught on.
But founder Henrik Fisker is a true automotive genius who helped design the BMW Z8 and the Aston Martin DB9 and V8 Vantage. When he brought Fisker to the stock market through a Special Purpose Acquisition Company (SPAC), he was essentially letting the world know that Fisker was back and here to stay.
By 2025, this company has an incredible pipeline. In fact, it might be easier to list what the company is not works in its pipeline. If it has wheels and an electric motor, Fisker is probably developing it.
There are plans to bring at least four consumer electric vehicles to market by 2025 in everything from sedans and pickup trucks to sports cars and SUVs. It builds 12-person autonomous electric shuttles that can be sold directly to city governments around the world. And, in a blow to Tesla, Fisker announced that he was making the first fully electric “Papemobile” – an SUV-based custom build for Pope Francis.
The stock was listed on the Russell 3000 Index last month and has fallen by about $ 5 a share since then.
You can see here that FSR stocks are trading below their 50 and 200 day moving averages, but the Relative Strength Index (RSI) reading of $ 37 suggests the stock is heading into oversold territory. . I really like this $ 15 business, and I like it even better at $ 10. As a long-term game, it is a stock that you buy and hold onto until one day you realize you are sitting on 10x your investment.
That’s the kind of profit potential the VE space offers right now. I currently know of a $ 2 EV inventory looking to go public in the United States – something that could happen any day now. This stock has already been on a 1,100% run over the past year, and full access to U.S. capital markets at a time when the electric vehicle industry is booming could very well mean another 1,100 rally. % looms. My colleague Michael Robinson has the details on this little EV part…
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About the Author
Andrew Keene, Editor-in-Chief of Club 1450, Super Options, and Project 303 at Money Map Press, is a world renowned trader and renowned expert in all options.
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