Kevin Hua takes his insights from the Frankfurt Auto Show and industry trends to spot the investable value in the electric vehicle market.
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We’re all using more lithium powered devices, phones, laptops, tablets and even cars too. Everyone knows about Tesla cars and last week at the Frankfurt Auto Show, the big names rolled out their latest and greatest to help replace your current car with an electric vehicle. Kevin Hua takes us through the update.
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How far away is the average motorist from getting their own electric vehicle?
- Electric vehicles are far from mainstream with less than 1% market share.
- In the western world, in the next 5-10 years, it is likely electric vehicles will become more mainstream and bring to closer to 3% market share.
Major cities across the globe are looking to phase out diesel engines
- There is wide recognition from the regulators that fossil fuel engines are environmentally negative with their emissions.
- Electric vehicles are hopefully one solution. It is the technology that has enabled these regulations possibility over the long term.
Tesla is a stand-out performer to lead the electric vehicle market
- Tesla has led mainstream dialogue and thought leadership in electric vehicles – they have created a great consumer product.
- Tesla is more than a car company – it is also a battery technology company.
- From an investment perspective, Tesla is expensive based on all traditional financial metrics compared to Daimler, the producer of Mercedes Benz cars.
- Daimler is aiming to have 25% of its sales from electric cars by 2025 – they could be selling over 1 million electric vehicles by 2025.
Should we invest in the lithium miner, the manufacturer or IP of electric vehicle/battery technology?
- There are multiple ways to play the supply chain for electric vehicles from the lithium miners and suppliers and battery technology.
- We believe the move towards greener energy sources is a great long-term investment trend and something we are currently heavily focused on at AtlasTrend.
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