Don’t just sit back as EV stocks explode this year

Source: Ilija Erceg / Shutterstock

[Editor’s note: “Don’t Just Sit Back While EV Stocks Break Out This Year” was previously published in January 2022. It has since been updated to include the most relevant information available.]

Electric vehicles invade the world. You know. I know that. The market knows it.

Consumers want to drive electric vehicles these days. In fact, 60% of potential car buyers today want to buy an EV. Lawmakers want you to drive an electric vehicle too. More than 200 cities around the world have a “100% clean energy” goal for 2030, 2040 and 2050.

Plus, these cars drive farther, last longer, get cheaper, and get a lot, a lot more accessible. Oh, and don’t forget that all the automakers of Ford (F) to Jeep to Rolls Royce (RYCEY) launches new electric vehicles.

So I repeat: Electric vehicles are taking over the world.

This is not something that will happen tomorrow or in the next few years. It’s happening right now.

In the first quarter of 2022, You’re here (TSLA) delivered a record 310,048 vehicles. Chinese electric vehicle manufacturer NIO (NIO) delivered 25,059 vehicles in the second quarter of 2022, up 14.4% year-over-year. And amid soaring fuel prices, inquiries about electric cars in the UK have recently hit record highs.

In fact, approximately 10% of all new car sales in 2021 were electric vehicles. This is up from around 5% in 2020 and 3.5% in 2019. In 2016, that number was just 0.3%.

In other words, in just five years, we have gone from 0.3% global electric vehicle penetration to 10%. That’s huge growth – and things are just getting started.

Thanks to changes in demand and legislation, as well as increasing supply, improving technology and decreasing costs, we expect the penetration rate of electric vehicles to reach 80% by 2040. This implies Electric vehicle volume growth of around 2,000% over the next 20 years.

With such growth potential over the next two decades, the electric vehicle industry offers investors multiple excellent long-term investment opportunities.

And the time to go “all in” with stocks of electric vehicles is at present.

Pile in electric vehicle stocks

Thanks to external macroeconomic noise from inflation, the Fed, Treasury yields and global supply chain issues, electric vehicle stocks struggled for some time.

But take a look at the biggest electric vehicle companies by market capitalization right now. You have Tesla, Li-Auto (LI), Lucid (LCID), NIO, Rivian (SHORE), XPeng (XPEV) and The North Star (PSNY).

And if you don’t already have them, now is the time to buy them. 2022 and beyond will be a disruptive era for electric vehicle stocks.

The supply chain shortages that have impacted electric vehicle production have begun to ease, as the impacts of COVID-19 on manufacturing become less severe.

Meanwhile, a ton of new electric vehicles are hitting the market.

Lucid is on track to deliver thousands of its ultra-premium Lucid Air this year. It has over 30,000 reservations, representing $2.9 billion in potential sales. NIO is expanding in Europe. The Fisker (FSR) Ocean is expected to hit the market in late 2022. BMW and Audi are launching an all-new fleet of premium electric vehicles in 2022. Rivian is making waves with its pickup truck and Amazon (AMZN) Partnership. And Canou (GOV) has just announced its own partnership with the retail giant walmart (WMT).

The last word

There’s a lot on the EV file in 2022.

And that’s why we’re hammering the table on EV inventory right now. We believe investors have a generational opportunity to buy high-quality electric vehicle stocks at a huge price before they embark on a huge run in 2022 and beyond.

Alas, the million dollar question is: Which EV stocks should you buy?

For that, let’s focus on the methods behind Hypergrowth Investing. We invest in the world’s most innovative companies, disruptive megatrends and breakthrough technologies.

Of course, electric vehicles fit that description perfectly. But we’re not going to buy all the stocks of electric vehicles. Indeed, we believe most EV companies will fail because the industry cannot support dozens of winners.

Instead, we buy the highest quality electric vehicle stocks with the greatest chance of long-term success. And we get for our subscribers returns of 100%, 200% and 300% and more.

Find out which electric vehicle stocks are on our “buy radar” today.

As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.

Garland K. Long