Why I'm Recommending A $44 EV Stock Today

The world's biggest economies, like the United States, China, India, and the European Union, have put increasingly tough emissions standards on vehicles – one of the largest sources of carbon emissions.

Last week, the European Union slapped Germany's "Big Four" legacy automakers – Volkswagen, BMW, Audi, and Porsche – with fines totaling $1 billion for running afoul of EU standards.

European regulators alleged the companies colluded for more than five years to avoid competing to advance cleaner emissions technology in diesel engines. The EU regulation sets minimum standards for diesel emissions, in the expectation that automakers would compete with one another to lower emissions.

Instead, the car manufacturers worked together to stifle competition – their lawyers admitted as much and agreed to settle.

Now, many of these companies have been fined before, for things like price-fixing. But this is the first time ever that the EU has dropped the hammer over technology, and it sets a precedent for legacy automakers across the globe; they should be worried.

It's a new ballgame out there, all over the world.

The world's electric vehicle (EV) makersand their stocks, have a huge advantage in this game, particularly this one…

Everything Is Changing for Carmakers

Back in February, some research out of Morgan Stanley caught my eye. The message and takeaway were pretty earth-shaking, but I'm not sure how many other eyes it caught because the note was more or less buried on the internet.

A Morgan Stanley auto industry analyst wrote, "We believe the market may be ascribing zero (or even negative) value for internal combustion engine-derived revenues at GM and Ford." Let that sink in for a second: Traditional engines, gas-powered cars, might very well be a liability – a drag on automakers' balance sheets and stock prices. The analysis bluntly said that gasoline engines could very well be a money-losing idea by 2030.

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William K. 1 month ago Member's comment

Certainly China is, AND WILL REMAIN, a great EV market. The government there is able to mandate that path. And while the business model for battery exchange seems to work well, I still question that the recharging power will always be available. But since China does not run like the USA, it may be quite different. It is interesting that NIO does not talk about any computer driven cars that I am aware of. I believe that they possess some insight hidden from others.