China just made history.

Two weeks ago, the Chinese government said it wants to ban the production and sale of vehicles powered by fossil fuels.

It didn’t say when this ban will go into effect. But experts think it could happen as soon as 2040.

That’s a long way away. You might be wondering why you should even care about this now.

Simple. A lot of money is going to be made between now and then.

Tomorrow, I’ll show you one of the best ways to profit from this historic decision. But you should first understand why China’s doing this.

  • China has a nasty pollution problem…

Just look at this picture of Beijing, China’s capital and third-biggest city.

You can barely make out the buildings in this photograph.

Pollution is so bad that people put on respirators before they go outside. Not only that, the local government shut down schools, factories, and airports back in December because the smog was so suffocating.

This isn’t just a major problem in Beijing, either. It’s a problem all over China.

  • That’s why China’s government desperately wants to get traditional vehicles off its roads…

It wants to make its cities more livable.

But let’s be clear about something. China isn’t trying to kill its auto industry. Instead, it wants to jumpstart its electric vehicle (EV) market.

EVs run on electricity instead of gasoline. They burn cleaner than vehicles with internal combustion engines.

  • China’s been trying to stimulate its EV market…

It’s helped pay for hundreds of thousands of charging stations. It’s offered generous subsidies to people who buy EVs. Soon, it will require at least 8% of all cars built in China to be electric.

So far, these policies have been working.

Last year, China sold 507,000 electric vehicles and hybrids. That’s 53% more than it sold in 2015.

Meanwhile, sales of “pure” electric vehicles in China jumped 65%. That’s 10 times faster than China’s economy grew last year.

Thanks to this explosive growth, China now accounts for 40% of global EV sales.

It’s the world’s largest EV market by far. And yet, EVs make up just 1.4% of the total Chinese auto market.

In the Netherlands, EVs make up 5% of the market. In Norway, they’re 24% of the market.

In other words, China’s EV market is going to get bigger… a lot bigger.

  • The EV revolution isn’t just happening in China, either…

It’s happening all over the world.

The British government also plans to ban sales of diesel and gasoline-fueled cars by 2040. France has a similar deadline. Norway and the Netherlands have been even more aggressive about getting gas-guzzling vehicles off their roads.

Major car companies have also jumped on board the EV revolution.

Take Volvo. It aims to launch 10 more EV models by the end of next year. By 2025, it aims to have 30 EV models.

Jaguar is going electric, too. Soon, it will have an “electrified” option for all its models.

The British carmaker isn’t doing this to be trendy. It’s doing this because EVs, according to its CEO, are “the future.”

But that doesn’t mean you should wait to bet on this megatrend.

  • The global electric vehicle market is already booming…

Last year, the industry grew 35%. That’s 11 times faster than the global economy grew in 2016.

And it’s just getting started…

You see, EVs still make up just 0.2% of the global auto market.

By 2020, Bloomberg says they’ll make up 2% of the global market. That means the industry’s set to grow tenfold over the next few years.

By 2030, EVs will account for 24% of the global market. By 2040, they’ll account for 54% of the market. By then, the International Energy Agency says there could be more than 600 million EVs on the roads.

China’s Ministry of Industry and Information Technology also recently said that the next 10 years will be “critical” for the EV industry.

  • Opportunities like this don’t come around often…

Investors are starting to realize this. That’s why Tesla (TSLA) is up 77% since the start of 2015.

That’s an enormous gain for such a short period. But it shouldn’t come as a surprise.

After all, Tesla’s the largest U.S. electric carmaker. It’s one of the most obvious ways to play the EV revolution. But that doesn’t make it the best.

Tomorrow, I’ll show you an even better way to profit from this unstoppable trend. As you’ll see, this opportunity is less risky AND has far more upside than buying a high-flying stock like Tesla.


Justin Spittler
Denver, Colorado
September 18, 2017

Reader Mailbag

Today, one reader writes in to praise Doug’s new novel Drug Lord. If you missed our special preview, you can catch up here and here.

Thanks for the preview of Drug Lord, but I wanted to say I just finished the book yesterday and thought it was excellent. Just like Speculator, it was hard to put the book down until finished.

I look forward to Assassin coming out as soon as you can get it finished. I foresee a movie deal in your future. Would be interesting to see who you cast as Charles Knight! Thanks for the entertainment.


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