By Matt McCallDec 18, 2018
The self-driving car market has been brimming with announcements recently.
Volkswagen (VLKAF), one of the largest auto manufacturers in the world, said last month that it plans to invest $50 billion into electric and autonomous vehicles. The European company has been very aggressive when it comes to the future of transportation. Now, it looks to increase its number of electric models from six today to more than 50 by 2025.
On December 11, Daimler (DDAIF) announced plans to purchase $22.6 billion worth of battery cells. Without these, the company will be unable to reach its goal of offering 130 different electrified Mercedes-Benz vehicles by 2022.
Daimler also plans to spend $11.3 billion on the continued development of its fleet of electric vehicles (EVs) and an additional $1.3 billion on ramping up global battery production. In the coming years, the company expects to have eight factories around the world that will produce batteries for EVs.
Now if you are skeptical about a future that includes self-driving electric vehicles, you are not alone. A sizeable portion of the population cannot envision a world with driverless cars.
However, it is important to take a step back and envision the world in the future. Will there be more electric and autonomous vehicles on the road?
The answer is a very obvious yes.
Regardless of your personal beliefs and comfortabilities, there is no denying the huge investment opportunity in this fast-growing industry. There will be trillions of dollars changing hands in the coming decade as the transportation sector is reshaped.
That’s why my Investment Opportunities subscribers and I are following the money today. We want to make sure we are positioned to capitalize from the big moves when they happen. That’s right, when… not if they happen.
There are two strategies we can take here. The first is trying to pick the one auto manufacturer that will become the market leader. But in a trend that is only in its beginning stages, this can be a risky undertaking.
We can also take a “picks and shovels” approach. That means we invest in the companies that make the parts that go inside the vehicles. There will be many big winners as the multi-trillion dollar transportation industry gets turned on its head, so diversifying across a few of the potential big winners lowers your risk greatly.
If you’re interested in learning more about the HUGE growth potential in the transportation of tomorrow, I recommend checking out my Investment Opportunities newsletter today.
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