By David Forest, editor, Strategic Trader
Officials rushed to meet.
Emergency panels convened behind closed doors.
Government insiders summoned industry experts.
They’re all looking for answers to a simple question: How could such a promising technology go so horribly wrong?
That was the scene in India this week. Government and industry regulators scrambled to answer hard questions on one of the world’s biggest tech trends.
Electric vehicles (EVs).
We’re Out of the EV Honeymoon Phase
The emergency summit came after some disturbing events.
Across the country, EV batteries have been exploding.
So far in 2022, several incidents of exploding EV batteries hit the press. Multiple deaths and injuries resulted.
The government obviously wants answers. They’re reportedly looking at alarm systems for overheating batteries. They pressed industry officials to install more stringent safety systems in all EVs.
We haven’t seen a lot of stories like this in the EV space. Up until now, the view from the public on EVs was mostly rosy.
The future was up and up for this massive tech sector. The trillion-dollar EV trend would keep washing across the planet, changing society and creating massive wealth.
Those things are still true. The massive buildout of EVs around the globe is continuing. This week, Ford announced the first commercial production of its flagship F-150 Lightning electric truck.
There are still fortunes to be made in EVs.
But they might not be in the places most investors are looking.
This week’s events in India show we’re out of the honeymoon phase for EVs.
Up until now, any stock related to electric vehicles took off like a rocket when it hit the market. But that’s no longer the case.
Take EV darling Rivian. The EV maker’s stock plunged this year. Since the beginning of 2022, Rivian’s share price fell 70%.
That’s because investors are asking hard questions. In Rivian’s case, they wonder when the firm will hit commercial production levels. How soon will it start delivering actual profits to shareholders?
There are lots of corporate concerns over hyped EV stocks.
There are also major concerns over EV technology itself.
That’s what I call “the tech stumble.”
The Tech Stumble Is Here
The tech stumble is a crisis period that always happens with world-changing technology.
Initially, investors are ga-ga when grand, new tech rolls out. There’s euphoria for all stocks in the sector. Companies like Rivian rise to massive valuations.
Then, reality sets in. Problems emerge with the grand visions for the technology. India’s exploding EV batteries are a good example.
This is, of course, totally normal. No tech ever rolls out without glitches. Most technology experiences major problems on the way to mass adoption.
I experienced this with 5G a few years ago. I also profited from it.
When 5G cell phone towers popped up across America, there was a big issue. It was a simple problem… but a critical one.
The 5G signal was easily blocked. Having a tree, a building, or even a window between the tower and your phone killed high data speeds.
It was a huge problem. It threatened to derail the entire 5G buildout.
That tech stumble created a massive profit opportunity. Digging into it, my team and I uncovered a tiny company developing a “fixer” tech for the 5G stumble.
This patch simply boosted the signal where needed. It was a quick and easy fix to 5G’s critical issues.
That’s why I was very interested to read about India’s emergency summit this week.
My research the last few years predicted that battery stability would be one of the biggest potential stumbles for EVs. This week’s events confirm it.
And I’ve already found the solution.
These Companies Will Profit
There’s a tiny company that foresaw the issue of exploding EV batteries. This innovative firm built a containment system for batteries.
Their custom product is a safety net. If a battery bursts, this company’s tech muffles the blast. No one gets hurt or killed.
Readers of my Strategic Trader service already had the chance to buy into this unique stock.
When I unveiled it, some investors complained it wasn’t appealing. That was at a time when big-name EV firms dominated the headlines.
But with the tech stumble setting in, this EV safety firm is in the sweet spot. EV investors don’t want dreams anymore. They want answers to the critical problems appearing as electric vehicles roll out globally.
This is normal. It’s healthy. Ultimately, it will create better, safer, and cheaper EVs.
It’s also going to make the right companies a lot of money. Anyone solving the coming EV tech stumbles is going to be front and center for investors.
Keep walking the path,
Editor, Strategic Trader