Some say that EV stocks are in a bubble now, pointing to excessive valuations as proof.
Even Jim Cramer over at CNBC’s Mad Money warned investors to remember the lessons of the dot-com bubble.
I guess it makes sense.
EVs are all the hype nowadays, what with Tesla facing challengers from traditional automakers and startups…
Along with the infrastructure bill promising EV charging station investments.
But say this argument is true. So what?
This bubble’s short-term if it exists. EVs aren’t going to magically disappear tomorrow.
Per a UN report called The Future of Electric Vehicles and Material Resources, the UN explains how electrifying transportation will play a key role in cutting transport emissions… but it can also improve energy efficiency (which could cut energy costs).
This report claims the tech necessary to replace fossil fuels with electric systems across all transport sectors now exists.
Of course, there is the issue of emissions generated when mining the materials needed for batteries…
But the report offers some solutions to that as well.
Now, take a look at Europe. As a McKinsey article I read points out, the EU is looking to cut emissions by 55% by 2030 while the Biden administration in the US is targeting 50% EVs in the US by 2030. Not to mention the subsidies and tax credits for EV makers and owners.
Speaking of Biden, there’s the infrastructure stuff I mentioned, which allocates $7.5 billion for charging stations and ups those tax credits for EV buyers.
Businesses are getting on board with electrification, too. Replacing fleets with EVs could help all sorts of companies meet their “corporate social responsibility” goals while cutting costs and helping the environment, as NewMotion pointed out.
As EV firms offer more vehicle options, competition increases. That means businesses and individuals get more choice and better vehicles for potentially better prices.
Wash, rinse, and repeat.
So in short: EVs aren’t going away regardless of their bubble status. They’re too vital to the future of the global economy.
Think about it: did the Internet vanish when the dot-com bubble popped?
I think Cramer should consider that point.
With all that said...
I just found a brand new way to play the EV explosion…
And this one is set to potentially 10x our investment in 12 months.
Imagine dropping in $10,000, forgetting about it for a year, and coming back to $20,000!
If you want to learn how I found this play and discover how to join PFG so you can get the ticker ASAP…
