Investing in the Future of Electric Cars

It’s going to be 72 degrees Fahrenheit on Christmas Eve…

Down the road, the cover crops are green and vibrant and look completely out of place against the backdrop of skeleton trees that reach up to a dimming sky at 4:00 in the afternoon.

It’s winter, but even the animals aren’t so sure.

Families of fat squirrels drunk on rotted pumpkins and apples are mocking our rusty snow shovels resting below the decomposing leaves that lied to us back in October.

Wandering ticks that should’ve been sent back to hell after the first frost are capitulum-deep in the farm dogs, and the locals aren’t even bothering to get their ice fishing gear out. It’s been so warm that even if we get hit with the heaviest of arctic blasts next month, it won’t be enough to blanket the lake in ice.

And there’s the most painful of ironies…

Most of the folks living in these parts heat their homes with oil.

With oil at record lows, it’s cheaper than ever to fill the tank. But two days ago, I had the windows open.

Demand Destruction

This weekend, 87 Octane could be had for $1.97 a gallon — $1.95 if you paid cash.

Yesterday, oil hit its lowest price in more than 11 years, while production continued to run close to record highs.

And Goldman Sachs recently suggested that oil could actually get as low as $20 a barrel.

The oil industry is struggling now, with oil going for $35 a barrel. At $20, it’s going to be a bloodbath. The industry’s already expected to shed roughly 100,000 jobs in 2015.

Of course, $20 isn’t set in stone. In fact, this was Goldman’s “low-end” marker. Truth is, while oil prices have plummeted over the past year, it wouldn’t take much to fire them back up. Some new tensions in the Middle East or perhaps some short-term manipulation with strategic reserves.

Or maybe $20 is on point. Perhaps we’re even seeing the beginning of some serious demand destruction. It’s definitely not out of the question.

Rich People are Smart

It’s no secret that most of the oil produced today is used for transportation fuels.

The continued reliance on an outdated internal combustion engine is really the only thing that gives oil any serious relevance. So what happens when the internal combustion engine goes gently into that good night? Because rest assured, dear reader — that’s what’s ultimately going to happen, and it’ll be electric cars that bury internal combustion.

Why else do you think the world’s richest billionaires are backing this transition to electrified transportation?

Think about it…

• Warren Buffett (net worth: $66.7 billion) has gone on record saying that all cars will be electric by 2030.

• Chinese billionaire Jia Yueting (net worth: $6 billion) is moving forward on a plan to build a $1 billion electric car factory in Nevada.

• Vincent Bolloré (net worth: $7 billion) just launched an electric car-sharing operation in London.

• Richard Branson (net worth: $5.1 billion) has admitted that he currently has teams of people working on electric cars.

• John Doerr (net worth: $4.1 billion) has invested a considerable amount in electric car batteries.

• Mark Zuckerberg (net worth: $35.7 billion) has 200 people working on an electric car project.

Folks, these guys didn’t become billionaires by investing in the wrong things. They became billionaires because they’re exceptionally smart, exceptionally talented, and exceptionally shrewd entrepreneurs.

So while you might still hear some folks on television or on some random Internet message board criticizing electric cars, the richest people on the planet are investing on a massive scale.

And let’s face it: The best way to build wealth is to invest alongside wealthy people. It’s not rocket science.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.