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Use any signs of weakness in the EV market as opportunity.
For one, demand is accelerating. According to the International Energy Agency, about a fifth of all cars will be electric this year. Sales are expected to grow by 35% globally to 14 million this year. The agency also noted that “more than 26 million electric cars were on the world’s roads in 2022, which represents a 60% increase relative to 2021,” as noted by CNBC.
There’s so much demand, companies like BYD just saw net income explode 411% in its first quarter, year over year. Li Auto just reported April sales growth of 516% year over year. But that’s just the start. With more EVs likely to hit the roads, there’s still plenty of opportunity in these top electric vehicle stocks to buy.
Even more impressive, “Electric car sales — including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) — exceeded 10 million last year, up 55% relative to 2021,” according to the IEA, as noted by CNBC. “This figure — 10 million EV sales worldwide — exceeds the total number of cars sold across the entire European Union (about 9.5 million vehicles) and is nearly half of the total number of cars sold in China in 2022.”
Not only is that great news for electric vehicle stocks, like Tesla, BYD, and Li Auto, it’s also great news for the EV metal stocks and ETFs, including:
iShares Self Driving EV and Tech ETF (IDRV)
One of the best ways to diversify at a low cost is with an ETF, such as the iShares Self Driving EV and Tech ETF (IDRV). With an expense ratio of 0.47%, the IDRV ETF gives me access 59 EV-related stocks, such as Li Auto, Aptiv, BYD Ltd., Tesla, Samsung, Ganfeng Lithium, QuantumScape, ChargePoint Holdings, and dozens more.
Obviously, as a speculator who is trading corn or wheat or any of the other markets, you are not going to be buying the actual physical commodity. No, it’s much easier – and cleaner – than that. Futures traders buy and sell “contracts” of corn or wheat or gold or whatever they’re trading. All the transactions are made on a computer using a licensed middleman – the broker.
The specifics of the contracts include the size of the contract (e.g., how many bushels of corn make up one contract) and how the price is indicated (point value). Each contract of a specific commodity is standardized – the same size, the same terms, etc. If traders want to hold a larger position, they can buy multiple contracts. If they want a smaller position, they can buy a mini contract, which is a fraction of a full-size contract, in markets that offer them. It all depends on how much of their trading budget they want to allocate to this particular trade.
Elite Wall Street trader, Joe Duffy, is allowing a limited group of future-elite investors into his masterful daily trades at thousands of dollars less than what others charge.
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