Prices of EVs Are Falling — Time to Buy Oil?

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It’s time for a reckoning…

That is when the rubber meets the street — proving whether or not analysts’ analysis was on the right track … or missed the mark.

And for electrical autos (EVs) … it missed it by a mile. Have a look:

The primary wave of EV consumers (myself included) has come and gone.

Gross sales are decrease. Costs are plunging.

The federal government can’t even sway again consumers with its new $7,500 EV incentive proper off the highest.

Now carmakers have to rethink the best way to transfer past the early adopter market.

Tesla has already lower costs half a dozen instances this 12 months, and its Mannequin 3 now prices roughly $40,000 — lower than the typical automobile worth.

Ford was going to supply 600,000 EVs yearly by the top of this 12 months… They’ve moved that to late 2024.

Ford reported that it’s going to lose $4.5 billion on EV manufacturing — greater than $60,000 per electrical automobile!

Hyundai Motor doesn’t qualify for U.S. tax credit since its EVs are made exterior the U.S.

So that they’re getting artistic … throwing in free house chargers and discounted installations. Perhaps a complimentary air freshener will persuade them.

However automobile consumers aren’t taking the bait.

And that is proper on monitor with what I’ve been saying.

The REAL mega development organising for a large run in 2024 will not be EVs… It’s oil.

Step Again from EVs…

Wait … all of the headlines learn: EVs Will Kill Fossil Fuels

What occurred??

Effectively, beneath the headlines, I informed you that inexperienced vitality is a crock of crap.

To make a battery for an EV, you could dig up 500,000 kilos of grime. That’s the one approach to get the minerals and metals you want — akin to lithium, cobalt and graphite.

All that earth must be hauled away with dump vans — just like the CAT 797.

Simply one in all these ginormous autos drinks 235,000 gallons of diesel gas annually — and accounts for as much as half of a mine’s vitality utilization.

So whereas we dig up supplies for EV batteries, hoping to interchange gas-fueled vehicles, every dump truck will dissipate as a lot gas as 423 passenger vehicles.

And that solely scratches the floor.

The underside line: We wager the farm on “inexperienced/clear” vitality. However the reality is: Fossil gas is right here to remain for the subsequent decade … at the least.

In actual fact, we’re organising for the proper one-two punch for potential earnings.

Punch 1:

In its September “Brief-Time period Vitality Outlook” … the U.S. Vitality Data Administration (EIA) said:

“International oil inventories [will] decline by nearly a half million barrels per day … inflicting oil costs to rise… Brent crude oil worth will common $93 per barrel within the fourth quarter of this 12 months.”

Simply as I’ve been saying all alongside — provide and demand will hold oil costs heading increased.

However I imagine costs may push well beyond EIA estimates, due to the affect of…

Punch 2:

Winter is coming.

Colder temps imply hotter homes. Which means extra oil.

It’s the proper mixture for launching oil costs considerably increased…

And right here’s ANOTHER kicker…

I can share all my analysis with you. However there’s one sign that’s flashing like a siren proper now.

Acquisitions are occurring…

Oil firms are educated consumers. While you begin to see massive oil firms purchase different smaller oil firms, it tells me this…

It’s cheaper to purchase oil firms and their reserves than to drill for oil.

There was speak earlier this 12 months that Chevron was seeking to purchase Occidental Petroleum.

And up to now week, two acquisitions happened:

Boone Pickens, one of many nice oil tycoons, discovered that to be true again within the early Eighties when he stated: “It’s cheaper to search for oil on the New York Inventory Alternate than it’s to drill instantly.”

And that’s what I’m seeing proper now.

When you don’t have oil and fuel firms in your portfolio, you’re lacking out big-time.

I’ve been saying that for the final 12 months and a half… Ever since I wrote about it in my Alpha Investor publication in April 2022…