Electric Vehicles (EV) and Christian Investing

by | Nov 10, 2021 | Content | 0 comments

Published on 11/10/2021

EV’s and Christian Investing

 

Electric Vehicles (EV) are trendy, and they are even a controversial debate topic nowadays. In this post C3 is going to cover a few EV topics…

  1. What is the best EV company?
  2. Are EV companies for the common good?
  3. Should Christians invest in any EV companies?

 

What is the best EV company? (Speaking strictly from a financial investment point of view)

In tackling the first question of what the best EV company is, we must define the word best. In the context of this portion of the post the word best is referring to what EV company would be the best financial investment, setting aside any morality. The are a lot of contenders getting into the EV space. A short write up on some of the top tier contenders is below.

  • Tesla – Tesla needs no introduction, everyone and their grandmother has heard of tesla and some people idolize the company and the man behind the company in Elon Musk. Idol worship is always wrong but sometimes it is understandable given the odd sort of charisma that Elon Musk puts off and the way he has been able to influence markets. Tesla is always a top recommendation from notable stock pickers and investment gurus. Some have predicted that Tesla will be able to double its price over the next five to ten years by capitalizing on its over $800 Billion market cap. The bottom line for Tesla is that it is not going anywhere anytime soon and its growth in the near to mid term seems inevitable.
  • NIO – NIO is the Chinese EV manufacturer that has become well known in the past few years. It has entered the European market and there are at least a few dozen major hedge funds that hold stake in NIO worth well over the $1 Billion mark. NIO is another company that would have to screw things up royally to stop their growth and financial success.
  • Ford, GM and ‘Insert other major Legacy Car Manufacturer here’ – the Legacy car manufacturers are breaking into the game of EV’s, and they are even getting verbal endorsements from President Joe Biden. These companies have always been safe bets to invest in if held for the long term. However, they are going to have a lot of catching up to do to get to where Elon Musk has brought Tesla. It is possible and somewhat likely, but only time will tell how committed these companies are to the EV movement. Our guess is that they are very committed because the other option is to go against the loud cultural screams of Wokeism that so many corporations are afraid to do. Plus, with a ginormous market cap in the EV industry and the political authorities backing the EV movement, it would be absurd for major car manufacturers not to get into the game and capitalize on the profits. They have the capabilities to mass produce and the knowledge is out there on how to do it.

It is tough to pick the best EV company from a financial perspective since F, GM, TESLA, XPENG, NIO and others all receive favorable buy ratings from most stock picking websites for distinct reasons. TESLA is the no brainer pick from the financial side of things given they have the potential to double their stock price in the 5-to-10-year range and they are the industry leader with no real threats to their brand being viewed as the top EV pick by the public. However, if someone were to go a riskier route when investing into an EV company, they may want to check out newly listed Lucid Group (LCID) or Rivian (RVIN) that was just listed today (11/10/21). Both have the potential to soar since they are new startups entering an industry with a lot, and I mean a LOT of room for growth. Not to mention two major corporations are backing Rivian in Amazon and Ford.

 

Are EV companies for the Common Good?

The common good! That is what C3 is all about. When it comes to the question of whether EV companies are for the common good it seems like a no brainer. Cars are a necessity of modern life and cars that reduce pollutants into the environment are even better, right? Well, yes that is pretty much right. Cars are something that the modern human being needs in the first world to earn a living, feed a family, and enjoy various aspects of life that would otherwise be impossible. Yet, there are some subtle corrections that need to take place in this line of thinking.

First, just because something has become a central part of life in that of modern man does not mean that a particular something is for the common good. C3 would stand to reason that car’s and EV’s are for the common good but not just because they are convenient tools used by almost everyone in the civilized world. Population majorities and convenience is not a recipe that always leads to something being for the common good.

Second, EV’s are not as friendly to the environment as you may think. EV’s do produce a lot less CO2 than traditional cars when they are in operation, but due to Lithium mining for EV batteries, EV production produces more C02 than traditional car production. Overall EV’s are slightly more friendly to the environment in terms of CO2 production but their cost to produce right now may outweigh that small benefit for the environment. Check out THIS VIDEO and REFERENCES from PragerU explaining why EV’s are not as a green as most people think. Now, do not be mistaken, EV’s in certain scenarios are absolutely more friendly to the environment and in the future EV’s have the potential to be way more friendly to the environment. EV’s are just not at the eco friendly spot right now that most people think they are at.

 

Should Christians invest in any EV companies?

This content is for members only.

 

 

References for some of the claims in this post are below. As always, C3 encourages all its readers to speak with friends and family and spend tie in prayer with our Lord Jesus Christ before making any major financial decisions.

 

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