This 'Transportation 2.0' Innovation Won't Be Under the Radar for Long
Editor's note: The future appears bright for electric vehicles ("EVs")...
Our newest senior analyst Matt McCall believes the transition to the next generation of automobiles is well underway... and in a few short years, EVs will likely outnumber traditional gas-powered engines. But this "hypergrowth megatrend" won't end with the death of the internal combustion engine...
In short, Matt says the shift to EVs will create a host of unprecedented opportunities in the transportation space – and he believes he has already identified one such company with the potential to multiply your money several times over.
In today's Masters Series, Matt shares his predictions for the future of transportation... and reveals an EV technology that could make huge waves within this powerful trend...
This 'Transportation 2.0' Innovation Won't Be Under the Radar for Long
For the first time in 135 years, the car as we know it is about to fundamentally change...
The automobile was born in January 1886, when Carl Benz applied for a patent for a "vehicle powered by gas engine." Six months later, the Benz Patent Motor Car model No. 1 was revealed to the public.
A little more than a decade later, Benz & Cie. was the largest producer of automobiles in the world. It manufactured 572 cars in 1899... and has increased that figure steadily year after year.
What Benz created in his small machine shop was only the start. The automotive industry is now one of the largest sources of jobs in the world – employing about 2 million people around the globe.
But the Benz Patent Motor Car is fundamentally no different from today's car.
Cars have gotten faster, safer, and more stylish. But most vehicles on the road today are still using the same gas-powered, piston-driven technology that was developed in the late 19th century.
Cars may have transformed the world, but cars themselves haven't really changed.
That is, until now...
Just as Carl Benz's automobile replaced the horse and buggy... electric vehicles ("EVs") are about to replace the internal combustion engine ("ICE").
The future of transportation – what I call "Transportation 2.0" – has been one of my favorite "hypergrowth megatrends" in recent years... and it will continue to be throughout the next decade.
If you've been paying attention to my recent essays in the Digest, you'll know this isn't the first time I've mentioned EVs. I'm closely watching this megatrend for good reason...
This industry is just starting to enter its "liftoff" phase. Trillions of dollars are already moving into the new technologies that will lead to the mass rollout of EVs.
Of the 1 billion cars on the roads today, most still require being driven to gas stations to pump in gasoline. But of the approximately 2 billion cars that will be on the roads in 2035, the majority will require being plugged in at charging stations to refuel their electric batteries.
EVs were first introduced when Toyota Motor (TM) rolled out the Prius – the first gas-and-electric hybrid vehicle – more than 20 years ago. Many other auto manufacturers followed suit with their own hybrid vehicles. But EV adoption still remains in its very early stages. As I wrote in the October 19 Digest...
Even with more than two decades on the roads around the globe, EVs still only command a tiny share of the total number of vehicles... Price, driving range, and battery technology have been the main barriers of growth.
Last year, for example, fewer than 2 million EVs drove across U.S. roads – about 2% of the total number of vehicles. The number today remains small, but it's three times as many EVs as in 2016.
And that trend is starting to pick up speed...
Globally, about 3 million EVs were sold last year. That was a 41% jump from the year before, which is especially impressive when you consider that global vehicle sales were down about 16% due to the pandemic.
Long term, the picture is even brighter...
Consulting giant Deloitte believes EV sales will increase by a compound annual growth rate ("CAGR") of 29% over the next decade. It also forecasts that EV sales will jump to about 11 million by 2025 and 31 million by 2030. That would push their market share of new-car sales to roughly 30%.
Research firm ARK Invest has an even bolder prediction. It estimates that global EV sales could reach 40 million by 2025. That's a CAGR of 68%.
We're at an inflection point in automobile history. But to take the next step into the future, automakers have some obstacles to overcome... and price is one of the biggest.
When comparing two similar cars, the sticker price for an ICE vehicle remains well below that of an equivalent EV – for now. ARK Invest estimates that EVs and traditional vehicles will reach price parity by 2023. And by 2025, the sticker price of a Toyota Camry will be $26,000, while the EV equivalent will cost just $18,000.
But what if I told you it was possible to make money from your EV?
What if you could take the energy that you didn't use driving your car around... and sell it back to the power grid? Or what if you could use it to light your own home?
Would that be yet another compelling reason to purchase an EV?
My answer is "yes"... and I suspect many people would agree with me.
That's why I just recommended the company developing the technology that allows EV users to take full advantage of their own energy generation in my newest research service, Matt McCall's MegaTrend Investor.
It's a small, under-the-radar stock that nobody is talking about. But it's making huge waves in a hypergrowth megatrend.
It has the growing revenue and "path to profitability" that I look for... And it has the potential to multiply our money several times over the next few years.
This stock is trading within pennies of our buy-up-to price today... and I'm confident it will come back down in the short term, giving patient investors the chance to "get in on the ground floor" of this innovative opportunity.
But it's also just one of the many exciting ideas I expect to recommend within the "Transportation 2.0" space in the coming years. These are stocks with the potential to grow as much as 100X... and investors who buy in at the extremely early stages stand to make the biggest gains.
I hope you'll join me on this wealth-building journey.
Here's to the future,
Matt McCall
Editor's note: Subscribers to Matt McCall's MegaTrend Investor just added this little-known stock to the model portfolio on Wednesday. And Matt says it's only the start...
While this company may be an under-the-radar play today, Matt doesn't expect it will be for long. And he expects to add a number of early-stage opportunities within "Transportation 2.0" – and other powerful hypergrowth megatrends – in the coming months and years. Learn how to gain access to his recommendations right here.