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What’s Holding the EV Industry Back?

Written by Jason Williams
Posted December 26, 2022

Greetings and welcome back to the grind.

I hope you had a good Christmas if you celebrate it. I hope you had a good weekend if you don’t celebrate Christmas.

Either way, I hope you’re doing well as this crazy, tumultuous, and often painful year comes to a close.

Our offices are closed to give everyone a little more time to enjoy family or just relax a little bit.

So I’m writing this in advance, and that’s a tough task in general. Everything moves so fast these days it’s hard staying on top of it all from day to day, let alone from week to week.

And it’s a Herculean task in a financial world where major indexes like the Dow Jones, S&P 500, and Nasdaq can jump or drop several percent within a day.

So I’m going to stick with a broader topic I’m sure will still be as timely when you’re reading this as it is while I’m writing it.

And I’m going to talk about two of the main dilemmas keeping EVs from mass adoption…

Outdated Technology

Both of them come down to the fact that we’ve built this entire industry on what amounts to outdated technology.

It’s kind of like how the jets we travel the skies in haven’t really changed that much in over 50 years.

But it’s worse…

The battery was invented in 1800 and the electric motor a few decades later in 1834.

It’s called a “futuristic” industry, but it’s operating on concepts that are nearly 200 years old.

And that’s a HUGE reason why EVs make up only less than 1% of the cars on the road around the world.

They’re based on old technology that just doesn’t work that well in the modern world.

These Old Batteries Are Dead

Even lithium batteries, invented in 1976, are woefully unprepared to power this industry to the heights we’re told it will reach.

They’re heavy. They’re expensive. They’re volatile. They don’t last that long. And they’re reliant on a material that’s controlled by China.

I’m not really ready to bet that Emperor Xi is going to come to the rescue when my Tesla battery needs to be replaced.

And I’d bet a whole lot of other people out there aren’t either.

But it’s not just the batteries that are holding the industry down.

Remember, the electric motor was invented in the 1800s too…

You Call That a Motor?

And since its invention in 1834, it really hasn’t changed at all.

It consists of a coil of copper wire that surrounds a magnet.

Electricity runs through the wires and creates a charge that causes the magnet to be attracted to them.

The charge flows through the wires around the circle they create.

And the magnet spins as it follows the charge.

It’s incredibly simple and hasn’t changed since before the Civil War.

It’s old. It’s inefficient. And it’s keeping the industry from really being able to challenge gas-powered vehicles for dominance.

There’s Always a Silver Lining

But there’s good news for the EV industry and the people convinced it’s going to end the threat of climate change.

And that news comes in the form of two publicly traded companies that are addressing those very same flaws holding EVs back…

In essence, they’ve figured out how to build a better mousetrap.

One has taken the original design for the electric motor and modernized it.

And the new motors it's putting out provide more power and require less energy than anything that’s come before them.

These motors are going to completely revolutionize the EV industry.

And once they’re being built at scale, I expect them to appear in every EV that rolls off an assembly line.

Then there are the companies making better batteries. Some are working on ways to use lithium more efficiently and effectively.

But the really exciting ones, like this one, have figured out how to eliminate lithium from the mix entirely.

That means their batteries aren’t explosive or expensive, but they still pack the same kind of punch you can get from a lithium-ion one.

EVs Are Coming, Just Not the Ones You Thought

It’s companies like those that hold the power to save the EV industry and supercharge the EV revolution.

Without their technology, electric vehicles will always be nothing more than a novelty.

And even massive companies like Tesla will become a footnote in the annals of history.

But with their technology, EVs could finally displace gas-powered cars as the dominant means of transportation for the entire world.

And the early investors who help these companies reach their targets will be incredibly well-rewarded.

Will you be one of them? I know I will.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an algorithmic trading service designed specifically for retail investors; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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