Want to invest in electric vehicles? Start with their parts


Olde Hornet

Well-Known Member
Want to invest in electric vehicles? Start with their parts


Seth Goldstein, chair of Morningstar’s Electric Vehicle Committee, spends his days analyzing what’s under the hood of Tesla’s Model 3, China’s NIO ES6 SUV and Ford’s new Mustang Mach-E.

That’s because for now the best potential stock investments in the electric vehicle (EV) business, which hit a soft spot in 2019, aren’t necessarily the carmakers managing the capital-intensive shift away from gas-powered autos, the Wall Street analyst says. It's companies that produce the computer chips, parts that enable electrification, and metals like lithium for longer-lasting batteries that he’s more upbeat on.

“As (EVs) gain wider adoption over the next decade or two, I see a lot of good long-term opportunities owning high-quality companies throughout the entire EV supply chain,” Goldstein tells USA TODAY.

When it comes to EV investing, there are pure plays like electric-vehicle maker Tesla (TSLA). But there are also opportunities to invest in semiconductor makers like Nvidia (NVDA), which produce chips that act as the EV’s brain.
 
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