Are EV investors pulling out?

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What to expect (May 9)

• Are EV’s really the future? 🔋

• ✅ Monster Pick - An undervalued gold co. before it’s well known

Since 2020, investors have been pummeled with articles, reports & hundreds of media outlets pushing the narrative that Electric Vehicles (EV’s) are the future.

Investing in companies supplying this future was touted as a ‘safe bet’, can’t lose.

Consumers were buying Tesla’s, Rivian’s and more - causing those companies stock prices to skyrocket.

Mercedes and other major car companies had committed to making their products 100% electric by 2030.

Mining investors quickly caught on.

Copper, Lithium & Nickel companies were suddenly the talk of the town and new projects seemed to emerge every day.

Some Investors made millions.

The shift

In 2023 though, things started to change.

Tesla reported a slowdown in sales, so did Rivian.

Their stock prices fell 30% and 44%, respectively.

Long investors were preaching that it’s just ‘seasonality’, and sales would pick up.

EV sales are estimated to grow 20% this year, but that’s a decline from the 33% increase seen in 2023.

Exploration & mining companies were initially holding on, but lithium & nickel prices started to decline and companies felt the hit.

Then, EV manufacturers started to announce changes.

Instead of EV’s, the companies are shifting to a happy medium - hybrids.

Hybrid sales grew 36 per cent in the first quarter of 2023, so it’s not a bad call.

All of these changes point to one thing - consumers aren’t ready for EV’s the way we were told they were.

And investors are reacting accordingly.

Take Albermarle (NYSE: ALB) for instance, the $15B market cap lithium producer, falling more than 30% in the past year.

Or a smaller comparison, Surge Battery Metals, down almost 50% this year.

There’s countless examples in the past year.

Copper and Nickel companies aren’t having as bad of a time, but the drops are still significant.

Take Alaska Energy Metals for example, a company with a MASSIVE nickel deposit in “the last frontier”.

When I wrote about them in early December, they were sitting around $0.35 - down to $0.16 today.

See our report here about $AEMC: https://stock-monster.com/p/mondays-monster-stock-dec-18

What does this mean for investors?

As many of you already know, these situations happen in cycles.

We reached all-time highs, and the market is pulling back. How much? No one knows.

EV’s aren’t going anywhere. Ask anyone in Vancouver how many Tesla’s they see every day. I’d guess every 3rd car is a Tesla.

But the demand isn’t where we thought it was.

The charging networks aren’t where they need to be and electric trucks aren’t as ‘sticky’ with contractors as much as Ford thought..

If you believe in a renewable energy future, than this is a great opportunity to buy low.

But with increasing recession fears in the upcoming year, it’s hard to know if these companies will continue to fall. And if so, by how much.

If you are privileged enough to be able to take risks, you might be rewarded.

👋 Colton, Stock Monster.

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