Investing and the Future of Electric Vehicles
Why Warren Buffett’s Betting Big on Electric Cars
The tension was high yesterday after Ford (NYSE: F) announced it was moving its new electric car production to Mexico.
Initially, the company planned to build the cars in Michigan, but that’s not going to happen now.
Those who continue to fight the good fight to keep auto manufacturing in the U.S. were taking to Twitter to share their anger and frustration. And, of course, there were the obligatory comments about how cheap labor is stealing U.S. jobs.
But that cheap labor isn’t coming from Mexico. It’s coming from the labs of today’s most technologically advanced robot manufacturers.
Truth is, anyone hoping to get or keep a job in auto manufacturing would be wise to use that energy to learn how to code.
The next generation of personal transportation will not be built by hardworking Americans busting their humps on the line to meet quotas and deadlines. In fact, that’s barely the case today, as advanced robotic systems controlled by a series of zeros and ones are already pretty much doing all the heavy lifting.
It should also be noted that the next generation of personal transportation will not come in the form of internal combustion vehicles, but instead electric vehicles. And those electric vehicles are far easier to put together than their internal combustion predecessors.
Even the way cars are sold is going to change dramatically, with car buyers going to mall kiosks and electronics stores to purchase their vehicles — just as they would a cell phone or laptop.
It’s coming, my friend. And energy investors who aren’t prepared to adapt to this new reality might as well close their trading accounts now.
Magic Numbers and Tipping Points
The world is definitely changing.
Ten years ago, few would’ve predicted that the biggest gains in 2017 would’ve come from digital currencies and legal cannabis.
And 10 years ago, few would’ve predicted that every major carmaker on the planet would have an electric vehicle in the showroom or in production. But that’s exactly where we are today. And in another 10 years, we’ll be looking back on this day in awe, as electric cars will eventually sell in much greater quantities than internal combustion vehicles.
Most of this is simply due to the rapidly falling costs of electric vehicle production, which mostly boils down to battery costs.
According to Bloomberg, lithium-ion battery packs are now selling at an average price of $209 a kilowatt-hour. That’s down 24% from a year ago and is about one-fifth of what it was in 2010. By 2025, it’ll fall below $100 per kilowatt-hour.
This is the magic number.
This is the tipping point for mass adoption.
And this is only seven years away, which means you need exposure to this space now, before every armchair analyst and Wall Street hack jumps in.
That’s why I want to introduce you to an opportunity that’s going to change the entire landscape of personal transportation and tip the scales toward electric vehicles.
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This Changes Everything!
Goldman Sachs has called it “the new gasoline,” the Economist says it's “the world’s hottest commodity,” and, as you read this, Elon Musk and Warren Buffett are actually fighting for control of the one thing that’s ultimately going to put electric cars in every driveway and garage in America.
I can’t stress enough how huge of an opportunity this is.
While digital currencies and cannabis have been red hot this year, that’s nothing compared to the literally trillions of dollars that are up for grabs in the greatest transition of transportation technology the world has seen since the first Model T rolled off the line in 1913.
And if you don’t believe it, you can see the numbers for yourself, outlined in this electric vehicle research report.
You can also learn more about the very thing Elon Musk and Warren Buffett are fighting over right now in this short video.
Make no mistake: The age of electric vehicles has arrived. And as it develops, it’s going to result in huge fortunes for investors who are smart enough to get in on this action today. Don’t sleep on this one.
To a new way of life and a new generation of wealth...
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
Energy Demand will Increase 58% Over the Next 25 Years
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