(01-21-2021, 10:39 AM)EricL Wrote:Most are notprofitablle yet. Investors today are buying EV stocks in expectation of future profitability as the world's auto fleet transitions away from fossil fuels. Excitement in the sector isn't necessarily unfounded. Electric vehicles really are a growth market.(01-21-2021, 10:34 AM)divmenow Wrote: F and GM breaking out. Who would have thought lol
I added CGC and UPS
Can someone please explain this EV hype train to me?
F & GM makes little money on every car sold, they make up for it with profits from their pickup truck sales.
The auto business is a highly cyclical, highly competitive, and low margin business.
Why will that still not be the case with EV's? Are they magically more profitable for car makers than ICE cars are?
"When it comes to renewable energy, this is not something that happens years in the future. It's happening today," Already, about one in 40 new cars is electric. But that number grows every year, and 20% or more of all new car sales will likely be electric by 2030.
So the growth is real and I believe we are getting in at the ground level here. Not to mention Biden is in favor of this sector. So the president is in their corner.
They are a ton of names to buy in this industry, but like all industries you have to be selective.