We’re at the cusp of an electric vehicle (EV) revolution…
In an interview with CNBC, Wedbush analyst Daniel Ives said 2021 could be a massive year for the EV market. He highlighted that while companies like Tesla (NASDAQ: TSLA) have been on an absolute tear over the last twelve months, there’s more than enough room for several winners.
As a result, he said that EV stocks could surge by as much as 50% this year, adding that the current ‘green wave’ rippling across the globe could be a tailwind for the long term.
Over the next decade, Ives noted that the industry could realistically grow its valuation to $5 trillion. Currently, market research company Fortune Business Insights estimates the EV sector is worth roughly $250 billion.
Ives also explained that the growing adoption of EVs worldwide will likely be one of the most transformative movements in history over the next 20 to 30 years.
That’s what makes EVs such compelling investments right now. And the best part is that despite the industry’s already massive valuation, these comments, as well as other bullish indicators, suggest we’re still only at the beginning of this colossal trend…
However, with so many legacy manufacturers such as General Motors (NYSE: GM), Ford Motor Co. (NYSE: F), and Volkswagen (OTCMKTS: VWAGY) already developing EVs and battery manufacturing facilities, there aren’t too many options that could provide investors with the meteoric gains ahead.
That’s precisely why we’ve shifted our attention to one company that has recently gone public. Compared to well-established firms that simply provide small and consistent annual gains, newly public companies have the potential to skyrocket a company’s valuation in the months and years after…
This Next-Gen EV Battery Stock Is Trading At a Bargain
QuantumScape (NYSE: QS) is a next-gen American lithium battery manufacturer for the EV market…
The battery maker went public back in November 2020, with a share price value of $23.50. And as with all IPOs, the company’s stock climbed substantially in the months that followed. By mid-December, QuantumScape shares had rocketed by as much as 460%.
Since then, profits have been taken and shares have pulled back. But this isn’t a reflection of the company’s quality. Rather, it could be seen as a buying opportunity at $44.39 per share.
Currently, the firm’s valuation is about $16.3 billion, with $113.2 million in cash and cash equivalents. These factors alone already put it among some of the most valuable auto suppliers around.
However, with great product tests, an experienced management team, a strong balance sheet, and a large total addressable market (TAM), Baird analyst Ben Kallo said the company could soon rise to a valuation of $23 billion.
Kallo also highlighted that the TAM for EV batteries, in general, could likely surge over 4,248% from 2020’s $23 billion to $1 trillion by 2040. According to Barron’s, that’s an average annual growth rate of 21%, suggesting EVs will essentially replace gas- and diesel-powered vehicles altogether.
And QuantumScape is in a strong position to benefit…
The firm is effectively a pioneer in developing solid-state, lithium anode batteries. These batteries are expected to not only cost significantly less than other lithium batteries but also charge faster (under 15 minutes) and provide greater range.
The company has already reported positive data on this front. And this is anticipated to continue as QuantumScape increases its manufacturing capabilities for the development of next-gen EV batteries.
Guess Which Stock Group Has Returned 570%?
Sponsored
A collection of 20 companies in this high-tech space have returned an average of more than 570% gains over roughly the past six months.
The AVERAGE gain among these 20 stocks was 570% over a recent six-month period!
If you don't know what this technology trend is… and if you're not yet invested, investing legend Whitney Tilson can almost assure that you're missing out on the market's biggest gains.
Surprisingly, most investors still don't have a clue, because this has nothing to do with 5G, robotics, artificial intelligence, virtual reality, blockchain, cryptos, quantum computers, or the other “hot” tech trends the mainstream press is obsessed with.
So please, get the facts for yourself.
That's why Tilson and his team at Empire Financial Research have put together a full analysis.
Here, he'll explain everything you need to know about this skyrocketing tech sector – including the stock name and ticker symbol of his favorite stock pick in this space.
