Why investing in electric cars is a no-brainer

It was cold and dark this morning when I woke up.

My cell phone alarm made me hear the sounds of a soft vibraphone, as I don’t like being woken up by loud, creaking noises.

I know my grandfather used to wake up to one of those old alarm clocks with the bells ringing. During my visits, this thing woke me up from my sleep and triggered my anxiety a bit.

Of course, my grandfather was a bit of a badass.

A career Navy man, he spent most of his deployments on some of the early nuclear submarines, sharing berths with other Silent Service submariners who actually slept on torpedoes. So I don’t imagine that a loud alarm clock with bells bothered him much.

Anyway, I dragged myself out of bed before sunrise because Thanksgiving is always a busy day, and I wanted to get some exercise and a short meditation session before seeing my family for the having dinner.

Between the stress of family drama and the shovelful of carbs and fats down my throat, I at least needed to start the day with some level of fitness — and I’m glad I did. As I write this, we haven’t even started dinner yet, but we are already starting to eat Vietnamese spring rolls (also known as chả giò) and a bunch of random meats and cheeses from a charcuterie platter that I bought from a local cheese shop which I think is the best in the game.

The booze started flowing early too, but I’m not a heavy drinker. I will however smoke a joint with my cousin after the main course. It is tradition.

Another tradition in my family is to listen to my uncle looking for ways to poke fun at my interest in clean energy and electric cars. It’s a relatively new tradition, of course.

Last year, he told the story of an electric car that caught fire in someone’s garage, saying: “See, those things are dangerous!”

Never mind the fact that, according to the Bureau of Transportation Statistics and the National Transportation Safety Board, for every 100,000 internal combustion vehicles sold in 2020, 1,529 caught fire. For every 100,000 electric vehicles sold, only 25 caught fire.

I shared the data with him, but he quickly dismissed it as “leftist propaganda”.

That’s usually his answer whenever his arguments are derailed by data, and honestly, I just accepted it. After all, what do I care what he thinks of electric cars – especially since the guy barely drives 20 miles a day.

He is now retired and spends most of his time watching the news and eating under stress. In fact, I feel bad for him. He has worked hard all his life, but has virtually no savings and often relies on me and other family members to buy his insulin (he is diabetic) and pills.

My cousin told me not to buy him the latter, but why not? The man deserves to have fun in his later years. Of course, that doesn’t mean spouting nonsense about electric cars – especially for me, a person who’s helped thousands of people get rich by investing in this space.

If you invested in Tesla (NASDAQ: TSLA) when I wrote about the stock shortly after its IPO, you know exactly what I’m talking about.

This action literally turned many ordinary investors into millionaires.

But if you haven’t, don’t worry. Because I have two new EV stock picks that, quite frankly, could make the gains we’ve seen on Tesla look like pocket change.

The first is the one I told you about last week.

It’s the company that’s about to start production of a $30,000 solar-powered electric car.

While it can still be plugged into an EV charger, it also draws power from the sun using solar cells built into the vehicle itself. So, depending on how long your commute is, you might literally never have to pay for “fuel” again…unless, of course, someone figures out how to charge you for sunlight.

This particular company already has over 22,000 pre-orders (over $600 million in pre-orders), and they won’t even be ready until next year.

Considering the purchase price and the solar technology that can power this 5,000 pound vehicle without depending on a drop of gasoline, diesel or electricity from a power grid, it’s no surprise that so many insiders are calling this thing a Tesla killer.

Of course, I don’t believe for a second that this solar-powered electric car company will bankrupt Tesla, but it will be able to deliver an affordable electric car that will easily compete with Tesla on price, thus giving most medium-car buyers the opportunity to go electric and on the cheap.

You can read my full analysis on this company here.

The other electric vehicle stock I’m extremely optimistic about heading into 2023 is an electric bus maker.

As I’ve written before, the low hanging fruit in the electric vehicle game is municipal bus fleets.

Thanks to electric buses proving to be much cheaper to own and operate than traditional internal combustion buses, fleet buyers are ditching their old diesel-powered buses and placing large orders for electric buses.

As pointed out BloombergNot only will the growth of electric buses exceed the growth rate of electric passenger cars, but in almost all charging configurations, electric buses have a lower total cost of ownership than conventional municipal buses.

Globally, the electric bus market is expected to grow from 78,240 units in 2021 to 1,383,480 units by 2029, representing a CAGR of 43.2% (2022 to 2029).

That’s not trivial and that’s why I’ve been incredibly bullish on electric buses this year – and it’s only going to get better as we head into 2023.

My top pick in this category is a company that is essentially the only pure play when it comes to producing and selling buses, charging stations, and battery technology.

In its most recent quarter, the company reported a 27% increase in total revenue ($74.6 million versus $58.5 million in Q2 2021) and a 93% increase in battery production , delivered 52 new electric buses and had more than $400 million in cash. , cash equivalents and short-term investments.

You can read my latest strategic analysis on this company, as well as on the electric bus market in general, here.

While I realize there are plenty of people like my uncle who for some reason just want to shit on electric cars at every opportunity, I load the boat up, and you should too.

Because no matter how you slice it, the transition from internal combustion to vehicle electrification is well underway, and there’s a lot of money to be made. You might as well get some of that action for yourself.

Towards a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and editor of Green Chip Stocks. To learn more about Jeff, visit his publisher’s page.


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