Tesla reports earnings after the bell on Wednesday. After last […]
The EV BOOM is just getting started ($TSLA, $RIVN, $F)
July 14, 2022
| Yesterday, Bloomberg proclaimed that Electric Vehicles (EVs) had surpassed the “tipping point” for mass adoption, crossing 5% of new car sales after a whopping 160% year-over-year growth rate in 2021… a full two years ahead of expectations. My reaction to this big news? Welcome to 2018, buddy. You see, at LikeFolio we’ve known that the EV tipping point was coming fast since LikeFolio’s famous 2018 bullish call on Tesla (TSLA) at $58/share. Here’s the cover graphic from that bullish report: |
| The comic above, from 2018, depicted the dichotomy between Wall Street’s pessimism and the extremely positive consumer insights we were seeing around Tesla’s products. Despite a large pullback recently, Tesla stock is still over +1000% higher than it was when we made that original call. Pretty sweet! Now, I know what you’re thinking. “That’s great, Andy… but I’m more interested in the future than the past.” So… let’s dive into what LikeFolio is seeing in the EV market. 1. Electric Vehicle Demand Is BOOMING LikeFolio’s measure of consumer demand for Electric Vehicles is skyrocketing, up +219% year over year, at nearly 5x the levels we recorded just a couple of years ago. |
| 2. High Gas Prices Are Driving Demand Consumer concerns around gas prices have ramped up to record levels in 2022 and are on pace for another record high this quarter. |
Although some experts say relief may be on the way with gas prices, we’ll believe it when we see it -- in our wallets!
Until then, each day that passes with $4+ gas means another day of consumers across the country looking for alternatives – and EVs are ready to fill the demand.
3. EV Competition is (Finally!) Getting Competent
Tesla was the only competent game in town for a while, but that’s starting to change.
Rivian (RIVN) gets a lot of attention from Wall Street, but the most promising competitor at the moment looks to be none other than Ford Motors (F):
As you can see in the chart above, consumer chatter about Ford’s electric vehicles is on the rise in a big way.
This is being driven by Ford’s Mustang Mach-E, and the newly released F-150 Lightning… which each look very much like their popular gas-powered predecessors.
Bottom Line: We’re Bullish On EVs
The EV market is heating up in terms of demand and competition.
We’re positive there is plenty of room for multiple winners in this space, as we expect the market share of electric vehicles to increase 6-fold over the next 4 years.
Tesla is clearly the frontrunner, and it's Elon’s race to lose. But well-built, stylish vehicles from Ford and Rivian could make things even more interesting in 2023 and beyond.