🔋⚡️ Electric Vehicles: Time to Read Up
Happy Sunday everyone!
Hope you all had a wonderful Thanksgiving. I personally spent it with a friend since my parents were out of town and I don’t have immediate family in the area. We had Turkey, Stuffing, Sweet Potatoes, Pumpkin Pie, and of course, delicious Bread. I love carbs, lol.
We’ve seen some crazy things in the world in the past few days, including the newly identified “Omicron” Covid Variant. Although it was identified in South Africa, it doesn’t mean that it originated there. South Africa has one of the best infectious disease organizations in the world, so them discovering it is a good thing. It is likely that the variant is already in the U.S., but our methods of identification are not as robust.
Markets should react as they usually do when there’s fear and uncertainty - which is that they’ll drop. There may be some good opportunities to pick up investments at a discounted price, but we’ll have to see how serious this potential strain is.
In EV news, this past week, Bank of America spoke publicly about the wave of IPOs in the electronic vehicle space which I found to be very exciting from both a sustainability perspective as well as an investing standpoint. Patrick Steinemann, co-head of Global Mobility Group Investment Banking said in an interview that growing investments in the sector [of EVs] will see companies spin off units as well as go public. Steinemann expects a wave of companies going public that could see up to $100B in IPO proceeds providing ample buying opportunities for those looking to enter the space.
In the next few years, keep an eye out for all things EV including electric cars, electric trucks, batteries, charging companies, etc,. Earlier this month, Rivian: an electric truck maker, raised $13.7B in its U.S. listing. To put that in perspective, Airbnb, a household name, raised only $3.5B in its IPO late last year. Rivian, since going public has jumped 47%. There are definitely investment opportunities to be made in this space and the next 2-3 years are shaping up to be huge.
One of the largest IPOs to come out of Asia next year (maybe globally) will be LG’s battery unit out of South Korea which could raise around $10B.
Enjoy this week’s Hump Days!
- Humphrey & Rickie
In the Markets
Weekly News Roundup
New Coronavirus Variant a ‘Serious Concern’ in South Africa (BBG)
Scientists in South America are studying a recently identified new coronavirus variant of concern, sparking fears of a potential fourth wave
RH: Much of America is wide open with minimal to no restrictions so we’ll look to see how potent this new variant is should it ever make it over to the U.S.
HY: My opinion is that it’s probably already here, but like Rickie said I am wondering how much of an effect it will have on our everyday lives…
Tesla Will Spend at least $1.06B on Texas Gigafactory and hopes to finish this year (CNBC)
Tesla aims to spend over $1B on a new gigafactory in Austin, Texas and plans to complete construction by Dec. 31. Tesla wants to produce their new electronic pickup truck, Cybertruck, as well as Model 3 and Model Y vehicles in the new gigafactory.
HY: The Cybertruck is slated for delivery in early 2022. To be honest, while it is ugly, it should still have a ton of Tesla fan-boys and girls vying for the first ones produced.
A $100B Wave of EV IPOs to Hit Market by 2023, BofA Says (BBG)
A three-year wave of initial public offerings in the electric vehicle space is set to raise about $100B until the end of 2023.
RH: This is a big win for those looking to bet on sustainability going forward!
HY: The world is transitioning to electric - good, but it will still take awhile, and our reliance on oil is still a heavy burden.