Investing Ideas

As EV Adoption Stalls Due To 'Chicken And The Egg' Situation, Hybrids Race Ahead

In recent months, consumer preferences and OEM investments have shifted from electric vehicles (EVs) towards hybrids as a bridge solution.

In recent months, consumer preferences and OEM investments have shifted from electric vehicles (EVs) towards hybrids as a bridge solution. Global EV/PHEV sales growth in 2024 has been led by China’s market, with flat or declining performance in the U.S. and EU-5 countries. High costs, sparse charging infrastructure and politicized adoption have slowed EV momentum, while hybrids gain traction.

Lithium and Rare Earths: Balancing Act. The demand for lithium and rare earths is projected to decline due to lower battery electric vehicle (BEV) sales. BEVs traditionally contain a higher content of these materials.

While HEVs and plug-in hybrid electric vehicles (PHEVs) are set to increase, their cumulative demand for lithium and rare earths won’t fully offset the drop from BEVs.

This contingency demand scenario should be closely monitored by investors in Lithium Americas Corp (LAC), Piedmont Lithium (PLL) and MP Materials Corp (MP). These companies remain crucial due to the limited domestic supply sources in the U.S. and the prioritization of IRA-qualified materials.

ETFs such as LIT, BATT and WBAT are also sensitive to changes in lithium and rare earth market dynamics.

Investing Ideas

By Having Implemented Stock Split, NVidia Simply Followed Footsteps of Tesla and Expects a Similar Outcome

Nvidia (NVDA) stock has more than tripled over the past year alone, to trade at just over $125.20 as of the market close on Wednesday, June 12, taking into account its recent share split.

International

Re-Election Modi Runs India on a Fast-Growth Trajectory

Prime Minister Narendra Modi has won the Indian elections but lost his absolute majority: his BJP party has won 240 seats on 543 in the Indian parliament, but this time failed to obtain the majority, which could weaken his policymaking.