When I look at the EV landscape today,Γ I see a graveyard with a few shining stars.ΓΒΓ’ΒΒ When I look at the EV landscape today,Γ I see a graveyard with a few shining stars. Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Ν β Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ Νβ
| Luke Lango Editor, Hypergrowth Investing |
Podcast The Best Stocks to Strike It Rich in βThe Great EV Consolidationβ Welcome back to the Hypergrowth Investing podcast! This week, Aaron and I talk about one of the biggest, yet most underrated, trends this year: The Great EV Consolidation. In short, the number of electric vehicle companies will dramatically shrink over the next few years, not unlike that of the gas-powered car boom in the early 1900sβ¦ Back then, nearly 500 companies entered the race to capitalize on this technological marvel, but by 1930, less than 50 of them were operating. Cherry on the top: Just three automakers made up 80% of the market. Itβs a natural evolution. And the same thing is happening with EVs today. Which means that there are fantastic long-term investments and fantastic short-term trades to play the Great EV Consolidationβ¦ but only if you pick the right stocks. To prove my point, electric trucking company Nikola (NKLA) just agreed to acquire battery maker Romeo Power (RMO)! Weβve said before that the EV industry is too crowded, and weβre due for a βgreat consolidation.β Nikolaβs buyout of Romeo is just the beginning. When a new technological paradigm emerges, everybody wants to start a business around it because they see an immense opportunity to strike it rich. But the market isnβt big enough to sustain all those startups. As an industry matures, it consolidates around a few players. Those left out in the cold either go bankrupt or get acquired. Guess what? The EV market is maturing. Every time I leave the house, I see a Tesla Model 3, or I see a Tesla Model S, and often find myself in a βTesla sandwich,β flanked by Tesla EVs on the highway. Looking at the data, June 2022 saw a record-high number of EV auto sales . The industry has started to become meaningful to the global economy. And I believe that over the next 12 to 36 months, the EV industry will be defined by two things β rapid growth and rapid consolidation. The top players that arise out of the EV boom will differentiate themselves from the pack in terms of some major value-add (think: cost, design, performance, or branding). Those electric car titans will attract all the consumer demand, reap all the rewards of the EV Revolution, and squeeze out 90% of the industry. So, when I look at the EV landscape today, I see a graveyard with a few shining stars. To make some short-term gains, look for small-cap EV stocks that could be great acquisition targets -- and are not at risk of bankruptcy. These companies will sport an edge over their competitors, plus unrivaled talent and technology. Investors who take advantage of small, beaten-up, yet high-quality EV stocks primed to be bought out by future titans of industry will see tremendous gains over the coming few years. Sincerely, |
| Luke Lango Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. |
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