Automobile Industry and Electric Vehicle Trends

The rise of the Electric Vehicle (EV) has been a hot topic recently with media highlighting how new entrants to the automobile industry can change the future. This content piece seeks to discuss the automobile industry and EV trends at large.

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Key Points

  • Recent Automobile industry outperformance is largely from Tesla – highlighting the rise of the Electric Vehicles (EVs) trends.
  • While we recognize the large potential growth for EV, we initially saw some signs of euphoria. Despite many EV businesses remaining small and unprofitable, small start-up companies’ share prices skyrocketed.
  • We believe the market is currently in the later stages of a bull market because the March 2020 drawdown functionally behaved more like a large correction than a traditional bear market. Consequently, we currently prefer less exposure to automakers, preferring to focus exposure to industries with higher gross margins, less competition and higher-quality earnings growth.
  • *The foregoing information constitutes the views of Fisher Investments based on information believed to be reliable. There can be no assurances that Fisher Investments will continue to hold these views. These views may change at any time based on new information, analysis, or reconsideration.

    Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance.


    About Fisher Investments Europe

    Fisher Investments Europe was established in London, England in 2000. Fisher Investments Europe offers the portfolio management services of its parent company, Fisher Investments, an independent money management firm in the US founded in 1979 by investment guru Ken Fisher. Today, Fisher Investments and its affiliates oversee more than £150 billion* in assets for over 100,000 private clients and 150 institutional clients globally.* Founder Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 to 2017, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 31/03/2022)