Mobility stocks, such as electric vehicle (EV) and self-driving vehicle stocks, were market leaders for nearly a year.
But in 2021, many mobility stocks have fallen 50% or more from their highs, and the industry has become oversold.
The stock market is now heating back up after a healthy pullback. That has created attractive buying opportunities in mobility stocks.
I expect these stocks to return to a leadership position once again.
Mobility Stocks Will Lead in the Coming Decades
Advancements made in mobility this decade will rival those of the 1920s, when car ownership tripled.
The first advancement is the commercialization of electric vehicles. This is happening now.
EV sales grew 28% in 2020 despite a 15% contraction in overall car sales. That suggests EVs are gaining traction and will dominate the vehicle fleet sooner than expected.
Between 2020 and 2030, the global passenger EV fleet is expected to grow 14 times, from 6 million to 84 million.
By 2040 the number is expected to reach 414 million, 71 times larger than in 2020.
The second advancement is the utilization of self-driving functionality.
This is not as futuristic as it sounds. Several companies have been implementing autonomous driving for years, and the technology is in the process of commercialization.
Companies such as Cruise and Waymo are currently operating robotaxi fleets in select areas. These vehicles have level 4 automation, which means they can monitor their environment and handle all functions under routine conditions.
This technology will not be available to everyone right away, but lower levels of automation have become widespread.
Level 2+ automation is now commonplace for new vehicles.
With level 2+ automation, a driver is required to monitor the vehicle and step in if needed — but the vehicle is essentially driving itself.
Your Chance to Profit From Mobility’s Rebound
It is easy to see why investors were excited about next-generation transportation in 2020.
This excitement may have died down temporarily, but it is not going away.
Mobility stocks have already started their rebound as they head back toward new highs and continue their long-term bull run.
This means investors who pick the right companies have the potential for huge gains.
And one company’s high-tech products could be in the majority of cars by the end of this decade. That means bigger profits for the company — and more money in investors’ pockets.
Research Analyst, Automatic Fortunes
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