Electric vehicle investment

50Twuncle

In light of JLR's announcement this morning

What are the Pros and Cons for investing in UK Electric vehicles - battery production etc ?

MaxiRobriguez

Not heard the announcement, but not sure how you can invest in UK electric vehicles without investing in the actual manufacturers themselves.

Personally I would stay away, I don't think we're a million miles away from driverless car sharing paid for with microtransactions, which will reduce car manufacturer profits as vehicle churn will reduce, but that's just a hunch from someone who knows little about the automobile industry.

50Twuncle

MaxiRobriguez wrote: »

Not heard the announcement, but not sure how you can invest in UK electric vehicles without investing in the actual manufacturers themselves.

Personally I would stay away, I don't think we're a million miles away from driverless car sharing paid for with microtransactions, which will reduce car manufacturer profits as vehicle churn will reduce, but that's just a hunch from someone who knows little about the automobile industry.

Right - and what will power all of these shared vehicles ?

shinytop

MaxiRobriguez wrote: »

Not heard the announcement, but not sure how you can invest in UK electric vehicles without investing in the actual manufacturers themselves.

Personally I would stay away, I don't think we're a million miles away from driverless car sharing paid for with microtransactions, which will reduce car manufacturer profits as vehicle churn will reduce, but that's just a hunch from someone who knows little about the automobile industry.

I don't think we are a million miles away from this being technically possible but I think we are several million miles away from it actually happening.

Prism

Batteries are made by a bunch of companies mostly based in Asia. Jaguars announcement will have little to no effect on uk companies

Lokolo

Unfortunately I have not seen any real collective investments which specifically invest in electric vehicles.

The main issue is that a lot of car manufacturers aren't only manufacturing electric vehicles. Tesla, Polestar (but owned by Volvo), Rivian are a few that do. But you have Jaguar, Hyundai, Nissan who have electric vehicles as a very small part of their portfolio.

So Jaguar for example, putting a lot into electric vehicles, but it is such a small part of their portfolio, their share price will be mainly reflected from their other sales. And if you have a look at the Tata share price (who own JLR), you'll see it's not so great. JLR sales have fallen massively as they were heavily invested in diesel, which have become very unpopular.

What about battery manufacturers? Panasonic are one of the biggest car battery manufacturers out there, but again, thats not all they do.

All in all, you can very rarely invest directly in electric vehicles without exposure to the market as a whole.

cloud_dog

There are two primary ways to benefit from electrification, invest in battery producers or invest in the providers of the minerals required for the batteries.

I think battery wars will be a bit like the old VHS / Beta Max wars with one technology (chemistry) winning out. There is also the technological advancements, i.e. moving away from the Ni, Mg, Al, Co, Li, (mineral combinations; 8:1:1) to a fully lithium-ion battery.

sal_III

cloud_dog wrote: »

There are two primary ways to benefit from electrification, invest in battery producers or invest in the providers of the minerals required for the batteries.

I think battery wars will be a bit like the old VHS / Beta Max wars with one technology (chemistry) winning out. There is also the technological advancements, i.e. moving away from the Ni, Mg, Al, Co, Li, (mineral combinations; 8:1:1) to a fully lithium-ion battery.

You forget investment in the Electricity providers, which is by far the best guaranteed investment. No matter what EVs will require electricity to run.

Investing in battery manufacturer or related mineral extracting is riskier long term, as potential technology breakthrough could wipe out your investment.

bearshare

sal_III wrote: »

You forget investment in the Electricity providers, which is by far the best guaranteed investment. No matter what EVs will require electricity to run.

Unless they use hydrogen/fuel cells.....

Seabee42

There are real issues with the provision of cobalt and high grad nichol both required for current technology batteries and both prevent any real dramatic escalation in battery production numbers in the scale required for full electrification.

System

As a general rule, I do not think that investing based on what you see on the news is a good idea. A couple of million other people probably have the same idea at the same time.