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 highway — proving whether or not analysts’ analysis was on course … or missed the mark.

And for electrical automobiles (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 easy methods to transfer past the early adopter market.

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

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

Ford reported that it’ll lose $4.5 billion on EV manufacturing — greater than $60,000 per electrical car!

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

In order that they’re getting inventive … throwing in free residence chargers and discounted installations. Perhaps a complimentary air freshener will persuade them.

However automotive consumers aren’t taking the bait.

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

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

Step Again from EVs…

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

What occurred??

Nicely, beneath the headlines, I instructed you that inexperienced power is a crock of crap.

To make a battery for an EV, you have to dig up 500,000 kilos of dust. That’s the one solution to get the minerals and metals you want — similar to lithium, cobalt and graphite.

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

Simply certainly one of these ginormous automobiles drinks 235,000 gallons of diesel gas every year — and accounts for as much as half of a mine’s power utilization.

So whereas we dig up supplies for EV batteries, hoping to exchange gas-fueled automobiles, every dump truck will fritter away as a lot gas as 423 passenger automobiles.

And that solely scratches the floor.

The underside line: We wager the farm on “inexperienced/clear” power. However the reality is: Fossil gas is right here to remain for the following decade … a minimum of.

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

Punch 1:

In its September “Quick-Time period Power Outlook” … the U.S. Power Info Administration (EIA) said:

“World 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 yr.”

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

However I imagine costs may push well past EIA estimates, because of the affect of…

Punch 2:

Winter is coming.

Colder temps imply hotter homes. Meaning extra oil.

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

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 taking place…

Oil corporations are educated consumers. If you begin to see giant oil corporations purchase different smaller oil corporations, it tells me this…

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

There was speak earlier this yr that Chevron was trying to purchase Occidental Petroleum.

And previously week, two acquisitions befell:

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

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

In the event you don’t have oil and fuel corporations in your portfolio, you might be lacking out big-time.

I’ve been saying that for the final yr and a half… Ever since I wrote about it in my Alpha Investor e-newsletter in April 2022…