The Electric Vehicle Megatrend Is Just Revving Up

For the last several years, Tesla Inc. (TSLA) has been the world’s best auto stock. General Motors Co. (GM) has not.

But Prince never sang a song about a “Little Red Model X.” No one in East Los Angeles ever converted a Model 3 into a “lowrider.” Frank Sinatra didn’t drive a Tesla onto the set of Ocean’s Eleven.

Corvettes, El Caminos, and Cadillacs are as “Americana” as Coca-Cola and Marilyn Monroe.

But that’s not all.

GM is now taking aim at Tesla’s current cultural prominence.

In a press release published earlier this week, GM CEO Mary Barra announced…

2023 is the year The General begins its push in earnest to outdo most of its competitors in the electric vehicle field, aiming to eventually overtake Elon Musk’s Tesla.

And General Motors isn’t merely talking the talk. The automaker has linked up with LG Energy Solutions to build a massive EV battery plant in Spring Hill, Tennessee. At same site, GM has also launched production on the all-electric Cadillac Lyriq.

But GM isn’t alone in targeting Tesla and setting ambitious electric vehicle (EV) goals.

• Toyota Motor Corp. (TM), the No. 1 global automaker by several measures, is on track to start producing EVs in the U.S. as soon as 2025…
• Ford Motor Co. (F) is spending $11.4 billion to build four EV sites in Kentucky and Tennessee, including a site called Blue Oval City… Ford’s first all-new production plant since 1969.
• And Honda Motor Co. Ltd. (HMC) plans to set up a dedicated EV division – specifically to debut 30 EVs by 2030 and to increase “to a production volume of more than 2 million EVs per year by the same time,” according to TechCrunch.

Without question, Tesla is the reigning monarch of EV companies.

But the biggest problem with being a monarch is that someone is always trying to steal your throne…

And Tesla’s hold on the EV throne is anything but secure.

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The Real No. 1

As every major car company on the planet designs new EV models and begins delivering them into the marketplace, Tesla’s market share will shrink, perhaps rapidly.

But there’s no need to fret about Tesla’s future, when the EV sector is offering so many other ways to play the EV trend.

Take one of my top stocks for 2023, for example: Volkswagen AG (VWAGY).

While it’s true that Tesla’s EV sales crush Volkswagen’s by nearly 130% (with Tesla reporting 1.31 million EV sales in 2022 and Volkswagen reporting 572,100), Tesla trails far behind Volkswagen on all other relevant metrics. The differences between the two automakers are enormous.

• Tesla sold 1.3 million cars last year. Volkswagen sold six times more than that.
• Tesla spent $1 billion on research and development (R&D) during the last 12 months. Volkswagen spent six times that amount.
• Tesla generated $81.5 billion in revenues in 2022. Volkswagen generated 3.5 times more.

And yet, Volkswagen’s market value is not 3.5 times larger than Tesla. On the contrary, Tesla’s market value is seven times larger.

It is true that Tesla makes far more EVs than Volkswagen. But even on this metric, Volkswagen clearly shines brightly.

Now, let’s look into the future of EVs and where the next phase of this megatrend’s growth will come from.

Here’s a hint: You won’t have to look far…

Under the Hood

Last month, right after the New Year, I traveled to where I believe will be the next epicenter of American wealth – and it’s all thanks to the EV revolution.

My team and I trekked to the top of Lookout Mountain on a rather gray day, but the view was stunning and expansive.

From that mountaintop, you can see seven U.S. states: Tennessee, Kentucky, Virginia, Georgia, Alabama, and both Carolinas.

And in each of these states – especially in Kentucky and Tennessee – there’s a new economic “supercluster” of innovation and investment taking shape.

In fact, in the 300 square miles surrounding that mountain…

You’ll find no fewer than 28 different companies, each dedicated to building out the future for electric vehicles and the batteries that power them.

Collectively, they’re investing billions of dollars in kickstarting a new era of American ingenuity and prosperity – something I call “Made in America, 2.0.”

You can catch the full video here – and just by viewing it, I’ll give you one of my top EV picks for free.

Regards,

Eric

P.S. Along with this free pick, I have five other recommendations that could skyrocket over 1,000% or more over the next few years. Details here.

Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, here.

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