Seeking Alpha interviewed me a few weeks ago regarding industrial metals. We mostly covered my general outlook for the sector and topics related to electric vehicles (EVs). I also shared a couple of stocks that I think stand to benefit. Here is an excerpt from the interview where I discussed my view on EVs:
SA: Do you think electric vehicles (EVs) will take over the world? If so, how soon do you see that happening?
JH: I am bullish on EVs but not because of EVs per se. I am bullish on EVs because (1) I am bullish on oil prices and (2) it is in China's best interest.
The world has not been investing in new oil projects. As demand growth continues and U.S. shale reaches its zenith, oil prices are going to continue to climb. This will make EVs economically viable, without government subsidies. The market has grown accustomed to low oil prices and does not see this coming. Under this scenario, the path of adoption that analysts are modeling will be achievable. ...
EV adoption is in China's best interest for three reasons. First, it reduces pollution, which is a major problem. Second, it presents a new technological driven industry that China has the opportunity to become a leader in. Chinese leadership wants to move the country to higher value manufacturing. Third, it gives China an avenue to potentially not have to increase its reliance on oil imports. This may have geopolitical implications that I am still contemplating.
Also, there are a lot of smart people working on batteries that will charge faster and extend the range of EVs. There is every reason to expect that we will continue to see advances in battery technology that will make EV performance more attractive to consumers.
Here is a link to the full interview:
You can learn more about the Industrial Minefinder™ subscription service that I offer through Seeking Alpha's Marketplace here.
Joshua Hall, ChFC
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