Imagine how much money you'd have right now if you had invested in a cell phone company in the 90s. Even a small investment into a technology as groundbreaking as that could've netted you thousands of dollars.
Like Motorola Solutions Inc. (NASDAQ: MSI) - its stock took off in the early 90s with the advent of the cellphone. In just 15 months, Motorola went from around $51 to a peak of over $175.
Now we've discovered what the next technology like that will be, and how you can invest in its three leading companies today.
This will change entire industries, and possibly create new ones, all to the benefit of investors.
We couldn't be more excited to tell you about the swiftly growing electric vehicle (EV) industry and give you our top three companies that will dominate the market.
Before you click away, this has nothing to do with owning Tesla Inc. (NASDAQ: TSLA). Investors across the country are over the hype machine that is Tesla.
This industry is much bigger than any one company. Greentech Media reported an 81% increase in electric vehicle sales in 2018. It's no wonder the industry is expecting explosive growth.
The EV market was valued at $118.9 billion in 2017, but Allied Market Research projects it will reach $567.3 billion by 2025.
That's 377% growth over just the next five years.
That means there's still time to get in early. Today, we have three "non-Tesla" EV stocks for you to buy. They don't make major headlines, but they could double your money if you buy soon enough.
Here they are...
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Best Electric Vehicle Stocks to Buy, No. 3: Toyota Motor
Toyota Motor Corp. (NYSE: TM) was the first in the world to deliver a "green" car with ITS hybrid Prius back in 1997. In late-2017, it announced electric versions of every one of its models would be available by 2025.
The company also said it plans on hitting a sales target of 5.5 million EVs by 2030.
But Toyota is taking it slower than most other auto manufacturers.
While others parade abstract, futuristic floor model concepts, supposedly to compete with Tesla Inc. (TSLA), Toyota has sat back, carefully observed the market for EVs and stuck to what it knows: hybrids.
Toyota sold 1.52 million of them in 2017, chipping away at its 5.5 million goal. This number will grow as its number of offerings expands, as it's promised it will. And it looks like this will happen in whatever timeframe Toyota feels is most economical.
Right now, batteries for EVs are nowhere near scalable, costing about as much as the car itself, according to Toyota's Executive VP of Sales for North America, Bob Carter. And he's right -today, no EVs are produced at a profit.
But Toyota's position as the largest auto manufacturer in the world ($200.82 billion market cap) allows the freedom to penetrate the EV market in due time, with just the right formula.
Management is taking the right steps to penetrate highly regulated markets right now, having just traded some Toyota EV technology to smaller Chinese firm Singulato in exchange for new energy vehicle (NEV) credits. These will keep them from having to meet the EV quota in China, for now.
The company has a few other transactions like this in the works, so it can still produce a reasonable number of gas-powered vehicles while it still makes financial sense, without penalty from highly-regulated governments in China and Europe.
Toyota stock trades at $141 right now, up from $123 when we recommended it in May. Sixteen analysts are projecting a median 12-month price forecast of $155.49 and a high estimate of $182.92. That would be a 23% return in just the first year.
Toyota also offers a dividend yield of 1.22%. The company is a big, safe buy if you're betting on the EV industry. But it could fully exceed analyst expectations once it's fully electrified its entire portfolio of cars.
Best Electric Vehicle Stocks to Buy, No. 2: Ford Motor
Ford Motor Co. (NYSE: F) is also among the biggest auto manufacturers in the world, at $34.61 billion market cap.
Ford currently offers EV versions of both the Mustang and the F-150. Recently it bought Rivian an EV startup and Tesla rival - for $500 million to expand its EV inventory even further.
Rivian specializes in heavy-duty lugging EVs such as pickup trucks and SUVs. Amazon.com Inc. (NASDAQ: AMZN) recently invested $700 million in this company to develop its own electric delivery vehicle.
Ford is now in position to use its influence to push Rivian's state-of-the-art technologies into the mainstream.
But that's not the only partnership Ford has leveraged for growth in the EV sector. The company recently announced it would partner with Volkswagen to develop commercial EVs and medium-sized pickups, as well as investigate the prospects of driverless vehicles.
Ford plans to restructure and put $11 billion toward this EV endeavor by 2022, hoping to produce 40 EV models in total. The stock price will climb the closer it gets to making this a reality.
This company takes a slightly more bullish position than Toyota on the EV future, but the stock could really skyrocket if it captures a large-enough segment of the market at the right time. And only time will tell.
Right now, Ford sells at $8.73 a share, with a high analyst target of $13. But as it makes preparations to venture into the EV revolution, if successful, the Ford stock is poised to explode higher.
Meanwhile, Ford makes a phenomenal dividend stock. It pays a huge 6.87% dividend, which is a pretty hefty cherry on top of a company that has long proven its strength.
But this next stock could be the most profitable investment in the EV realm.
The Best Electric Vehicle Stock You Weren't Looking For
Up to now, the EV market has been heavy on luxury. Due to the batteries mentioned earlier, and other production costs, it's going to take a while for an EV to become a common good.
Fiat Chrysler Automobiles NV (NYSE: FCAU) intends to produce both luxury and "everyday" EVs.
The company announced four electric Maseratis would hit the market by 2022. But that was in addition to the Ram and Jeep plug-in hybrids that would also be on the market within that timeframe.
Eventually, Fiat Chrysler expects every Jeep to have a hybrid plugin as well as a fully electric option. The company is investing $4.5 billion dollars in assembly plants to make this happen.
A Jeep today gets under 20 mpg (if we're generous), below the average 24.7 (according to Reuters), and still Jeep had its best year to date in 2018, selling almost a million (973,227) units in the United States alone. Adding an EV option should expand the Jeep base, enticing anyone who may have been on the fence regarding its fuel economy.
But Fiat Chrysler isn't just going with the tide - it is vying for leadership in the EV industry. And like Toyota, Fiat's management has shown it's practical enough to consider the length of time that might take.
It recently struck a deal that allows it to be counted among the Tesla fleet in the European Union. This lowers its average emissions output and staves off billions in potential EU fines as it goes about its regular gas-powered vehicle operations for the time being.
So this company is being smart about its potential market share, likewise with its financials.
Fiat raked in a $1.4 billion profit in Q4 2018, a 61% year-over-year jump. Total profits in 2018 amounted to $3.9 billion. This is more than enough to fund EV expansion and pay shareholders a nice 5.29% dividend. Earnings per share took a hit at the beginning of 2019, but have doubled since then to $0.90 in Q3. Analysts are expecting it to grow even further in Q4.
But this stock is expected to deliver even greater profits very soon. Our proprietary Money Morning Stock VQScore™ system ranks it at a 4.9, meaning it's ready for a price breakout very soon. That is up from 4.15 just a few months ago.
If you are still hungry for more about EVs, then you need to see the company that the Strategic Tech Investor's Michael Robinson found for you. We talked about some of the companies that are making the cars, but he went even further and found a company that is providing critical support to a whole host of the biggest EV manufacturers.