E The Electric Vehicle Space Has Shown Amazing Lockdown Resilience

The global economy may be in a regrettable tailspin experiencing a second round of lockdowns in many major countries, but some industries are proving surprisingly resilient totally.

Photo by Waldemar Brandt on Unsplash

While global GDP was busy plummeting by as much as a third last quarter, remarkably, electric vehicle sales have managed to hold their own through the carnage. 
 

Electric Car Sales 2020

Source 

You may not have guessed it from the constant flow of negative headlines on the economy these days, but EV sales growth for 2020 has already eclipsed growth for 2019, and the data above is only current through July. We can always engage in theoretical counterfactuals, wondering what the EV industry could have been at this point had global lockdowns never occurred, but what we can see at least from the chart above is that EV has been, to say the least, extremely durable in the face of serious economic adversity.

And EV stocks have reflected this resilience recently in a big way. Tesla’s (TSLA) monster rally that began in December is lost on nobody, but even Chinese competitors such as NIO Limited (NIO) rocketed higher in 2020 without so much as a dent during the wider panic selloff as the first wave of lockdowns took effect. Interest in EV offshoot companies has also sprung on the scene. Blink Charging (BLNK) for example, the largest EV charging network in the United States, has rocketed higher since May by over ten times. 

It’s mostly guesswork to try to explain timing in these cases, but fundamentally, what can be said is that investors are realizing that the EV industry has actually stood firm up to now, unlike many others that have suffered. Any successful vaccine that could put the lockdowns behind us, could then unleash a year’s worth of pent up growth in the industry that investors are just now trying to get in front of. 

Luckily, there are companies that haven’t yet climbed to all-time highs for newcomers in the space to look at. Recently joining the scene is Medigus (MDGS), which just last week announced its intention to enter the EV market through a joint venture with private company EMuze for the development and commercialization of micro-mobility vehicles in urban settings for last-mile and cargo delivery. The timely announcement has drawn attention to Medigus as a new player in the field, in a niche setting within EV that isn’t getting as much focus. 

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Disclosure: No positions in any stocks mentioned.

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Harry Goldstein 5 months ago Member's comment

Good read. Juan Carlos Zuleta would you agree with this?

Edward Simon 6 months ago Member's comment

Interesting read. Good to hear about other up and coming companies in this space. Still waiting for the other foot to drop in the EV industry. That is the issue of battery disposal. There are still no good alternatives to disposing of this waste and it is a ticking time bomb, but as there are still "relatively" few to dispose of, the bloom is still on the rose, so to speak.

Bill Johnson 6 months ago Member's comment

Good read, looking forward to reading more by you.

William K. 6 months ago Member's comment

Certainly the EV world will continue to do well, partly because those buying them have the resources to do that in spite of the lockdowns. It always makes sense to market to those who can pay for the purchase. The challenge for EVs will be the source of that charge power. If everybody had one the grid would be vastly overloaded.

The diversification choice was quite smart indeed.

The scout camera technology is very interesting, partly because in addition to all of the applications for small cameras, it could be the end of privacy as we presently know it. Consider a newly-built house with a dozen cameras embedded in the structure as one possible item.

Kurt Benson 6 months ago Member's comment

Shareholders Unite, you are a bit of an expert on Medigus/Scoutcam, right? Were you aware of these non-medical uses for it? This could greatly increase it's revenue potential. Complete news to me!

Adam Reynolds 6 months ago Member's comment

How does this sale growth compare to non-EV car sales? Did those increase as well? If so, buy a similar amount? With so many lockdowns in place and with so many out of work, I admit, this surprises me.

Susan Miller 6 months ago Member's comment

John Petersen, what are your thoughts on this?

Alpha Stockman 6 months ago Member's comment

Great read, thanks.