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.
  • Investing in financial 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. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.

    Fisher Investments Ireland Limited, trading as Fisher Investments Europe, is authorised and regulated by the Central Bank of Ireland (CBI), and is wholly owned by Fisher Asset Management, LLC, trading as Fisher Investments (FI). Fisher Investments Europe delegates portfolio management to its parent company, FI.