Electric Vehicles (EV) for Real?

Markets for the Week

Stocks paused last week, as the 10 Year Treasury Yield rose to finish the week @ 1.74%.

The Dow lost a mere (.45%), the S&P 500 (.74%) and the Nasdaq Composite (.77%). Small Caps led the way down, pulling back (2.76%) for the week.

Over the pond was mixed, as Emerging Market Stocks were down approximately (.80%) and Developed Market Stocks up .61%

Sectors of the Market

So far this year, the top 3 S&P 500 sectors are Energy, up 30.9%, Financials 16.1% and Industrials 9.0%.

The bottom 3 are Consumer Staples down (2.2%), Utilities (.9%), and Information Technology (.6%).

How long will this reversing trend continue, with economic re-opening stocks taking leadership from stay-at-home stocks?

Electric Vehicles

So, do you think you’ll be driving an Electric Vehicle sometime in the future? Automobile manufacturers are racing to enter the EV market.

Think about it from an Automobile Manufacturing standpoint…. The thought is the possibility exists, sometime in the future, gas will be completely in the rear-view mirror. This opens the market for significant competition to gain market share, as soon as possible. Cost of production may be more expensive as new technologies are developed; however, the belief is that eventually, manufacturing costs will decrease creating much higher profit margins.

Dates listed are from Car and Driver Magazine:

In 2030, the United Kingdom will ban the sale of diesel-and gas-powered cars.

In 2022, Mercedes plans to introduce 10 new EVs and Ford intends to start production of an F-150 EV. In 2023, Honda, Mazda and Nissan jump in. In 2025 Audi, BMW, Ford and GM plan large investments.

Jaguar plans to be all-electric in 2025 with Land Rover, Toyota, Volkswagen and Volvo jumping in.

The list goes on and on through 2040, as GM is suggesting they will be 100% “carbon-neutral” by then.

Will this actually happen? As of now, this is the direction. If it does happen, the transition will certainly be interesting! How will the transition impact the cost of vehicles, servicing, auto manufacturers, auto dealerships, part suppliers, repair shops, gas stations, Wawa’s, the oil industry, jobs, tax incentives…. and I’m sure you can add to the list. I can certainly see both positive and negative.

For now, and hopefully for a while longer, I’ll enjoy my gas powered 8-cylinder Jag. I do see a handful of EV sporty cars that have caught my eye, however!! 

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Paul Levin CFP®, ChFC®, RICP®

Retirement Income Certified Professional®