When it comes to the realm of electric vehicles, 2020 will go down in the books for having some real winners and some real losers. It was like night and day. Heads or tails. Tesla or Nikola.
But if you think you saw a wild ride in the EV sector in 2020, you’d better fasten your seatbelts. Because all of our indicators show that 2021 is going to kick everything into hyperdrive.
And that’s a pretty bold statement considering that in 2020, electric vehicle stocks outperformed every other sector out there.
So, knowing that, here’s what’s got the market hot for EV stocks in 2021.
It All Boils Down To One Word: BIDEN
Check your politics for a minute and don’t mistake this for an endorsement (or a dig) at the Biden administration. What I’m about to share with you has nothing to do with how you voted in 2020 and everything to do about the reality of what the Biden agenda means for the future of electric vehicles.
Now that we’ve taken care of that disclaimer, let’s dig into what makes Biden’s win such a big deal for EV stocks in 2021 and beyond.
Highlights Of Biden’s Big Agenda
You don’t have to dig very deep into Biden’s political agenda to see that it’s presenting electric vehicles with loads of potential opportunities and profits. After all, in his recent frenzy of executive orders, he’s already started carving out some serious government spending.
That spending includes a $2 trillion climate plan. Which will break down into a million little missions. Missions like these three:
- His pledge to install 500,000 charging stations (analysts predict it would translate into spurred sales to the tune of 25 million EVs – to put that into perspective, that’s 25 times more than Tesla plans to sell in all of 2021)
- He’s also promising to phase out the federal government’s gas powered vehicles in favor of an electric fleet (in 2019, the government’s fleet of vehicles amounted to about 650,000 vehicles)
- Plus, he’s set the goal of 1 million new jobs in the auto sector (specifically to “position America to be the global leader in the manufacture of electric vehicles and their input materials and parts.”)
And that’s not including proposed tax credits and rebates that could be on the table.
So, knowing that the Biden administration is already working overtime to make all of these electric vehicle dreams a reality, here are three very promising electric vehicle stocks you might want to keep your eye on before they leave you in their dust.
Hyliion | (HYLN)
Hyliion made this list because they’re making it more affordable for commercial truckers to go green.
Transportation makes up just under 30% of the United States’ total greenhouse gas emissions. And according to that same Environmental Protection Agency report, commercial trucks are responsible for about 23% of that total. Knowing that, it makes sense that commercial truckers are starting to shift lanes with how they build their fleets. And many are making the choice to move to electric vehicles before it has to be forced on them by the government.
And that’s Hyliion’s sweet spot.
They have two products. One converts existing diesel tractor-trailers into more efficient hybrids. It’s already in production. The other is a full powertrain that is made up of electric motors, batters and a natural gas generator that will keep it all running.
Another thing that makes Hyliion super sexy is that they aren’t just manufacturers. They are also designers and engineers. In fact, they don’t even have their own factory. Instead, they partner with auto parts maker Dana to make and ship their products directly to the consumer.
Workhorse Group Inc. | (WKHS)
Electric cars and trucks are pretty sexy, but the folks over at Workhouse Group Inc. are thinking much, much bigger than that.
Right now, they’ve got quite a few proverbial irons in the fire. They’ve honed in on the medium-duty truck arena, drone delivery systems and even electric aircraft. But their sweet spot right now is electric vans. And boy is there an appetite out for those. More than 350,000 “last mile delivery vans” were sold just last year.
When you take into account that there’s an average selling price of about $50,000 on these bad boys, that’s a very respectable market size of about $18 billion.
And while both of these two EV stocks are new and sexy, the real winner of all of that government money will probably be a company that’s quite a bit older (but still a little pretty sexy when you take that into account.)
Ford Motor Company | (F)
No, you’re not reading that wrong. And we’re not trying to mess with you, either.
But there’s a reality – if the government is going to spend that much money, they’re probably going to spend it with someone they’ve done business with in the past. All you have to do is look around to see that Ford already wins a lot of business from federal, state, and local government fleets.
Seriously, what make was the last police car you saw?
And while fleet sales used to get a bad rap, any Ford executive will happily tell you, government- and commercial-fleet sales are a good, profitable business in this brave, new world.
And Ford has made a lot of progress in the pursuit of their own EV gamechanger. For starters, Ford will launch battery-electric versions of its huge-selling F-150 pickup and Transit van next year.
Both will be made in the United States, and will probably prove to be contenders for pieces of the government’s electric-vehicle pie.
While those first two stocks could prove to be a gamble, Ford is a great way to hedge those bets with this American icon that’s still trading at less than 10 times its expected 2021 earnings.
Unfortunately nothing will fry the circuits of an EV rally quite like a Second Wave
Nobody was out there predicting the arrival of the pandemic. But still it came.
Now, I don’t mean to mislead you – this Second Wave I’m referring to doesn’t have anything to do with COVID.
In fact, when it hits, it could hit harder than the pandemic did.
It’s all about the stock market, what’s been happening in Washington and five of America’s favorite tech favorites that could fall, and fall HARD.
Suffice it to say it will have massive implications. And whether you realize it or not, your future is right in its crosshairs.
My little stock picks will look like a distant memory if this goes down. Which is good, because this could make everything go up in smoke anyway.
There’s a lot to go over here in a simple report conclusion, so I’m going to send you a copy of the Second Wave expose and survival guide. In fact, it’s probably already in your inbox right now. If not, expect it to show up shortly.
Whatever you do, take a minute to check it out. It could spell the difference between surviving or being swept away by the Second Wave.