You’ve probably seen on the news that the crude oil price spiked.
The cost of the black goo shot up 57% in 2021.
Coal did even better. Its price shot up 111%.
But the steepest price rise wasn’t for a traditional energy source. It was for a silvery-white metal at the center of the electric vehicle (EV) revolution – lithium.
Lithium is a critical ingredient in the rechargeable batteries that power EVs.
And last year, its price rocketed 477% higher.
That’s 6x more than crude oil… and 16x more than coal.
It’s another sign that the EV revolution I (Chris Lowe) have spilled so much ink on is real… and gushing profits.
So today, you’ll hear from colleague and commodities expert Dave Forest on one of his top ways to play the boom ahead.
It’s an auto stock that’s been crushing Tesla. It’s gone up triple digits over the past three months.
And although you may be shocked when I tell you the company’s name, Dave says it’s set to do even better in the months to come.
The Daily Cut is the premium daily e-letter we created for all paid-up Legacy Research subscribers.
My job as editor is to help you really move the needle on your wealth. I do this by bringing you the best big ideas from Dave, Teeka Tiwari, Jeff Brown, and the rest of the Legacy team.
I first urged you to follow Dave’s advice… to position yourself to profit from the EV revolution… in October 2018.
The recommendation he passed along was the Global X Lithium & Battery Tech ETF (LIT). It invests in a range of lithium mining, lithium refining, and battery production companies.
Since that recommendation, it’s up 147%. That’s great for a “one-click” ETF.
And today, we’re as bullish as ever on this market megatrend.
This is a worldwide trend. But take the U.S. as an example.
A recent Morning Consult survey revealed that 51% of U.S. adults are prepared to buy an EV in the next decade.
That’s up from 39% one year ago.
It makes sense to be on board…
Buying an EV in the U.S. can currently save you up to $7,500 in tax credits. And the White House is seeking congressional approval to raise this to up to $12,500.
The average American driver spends $1,837 on gas a year. If EV owners stick to public charging stations, that figure drops to zero.
An EV engine has roughly 20 moving parts. That compares to the over 2,000 moving parts in an internal combustion engine.
And a Tesla has about 10,000 parts overall. That’s one-third of the parts making up the average gas guzzler.
So EVs are also cheaper to maintain.
Dave is the Indiana Jones of Legacy.
He’s a trained geologist. And he spends much of his time traveling the world looking for buried treasures.
He even looks the part. Here’s a shot of Dave in Nevada, examining the rocks in an area a NASA satellite system showed was positive for copper and gold.
Legacy’s own Indiana Jones hunting for copper and gold in Nevada
But he isn’t just a brilliant rockhound… He’s also a genius speculator.
In 2019, he turned bullish on little-known car charging stock Blink Charging (BLNK). And the BLNK speculation he recommended at our Strategic Trader advisory gave subscribers the chance to close out a 2,805% gain.
At our Strategic Investor advisory, he’s given subscribers the chance at gains of 193%… 285%… and 384% on lithium mining stocks.
But right now, Dave is pounding the table on another way to rack up a triple-digit win from the EV revolution – Ford (F).
The first Model T rolled off the production line at the Ford Highland Park Plant in Michigan in 1908.
One of the earliest Model Ts. Source: TIME for Kids
One set you back about $825 at the time – roughly $25,000 in today’s dollars.
This helped it become the world’s best-selling car – a title it held until 1972.
Now, Ford aims to do something similar with the new, electric version of its iconic F-Series pickup trucks.
The company’s new Ford F-150 Lightning EV will set you back less than $40,000 before any federal or state tax credits.
The 2022 Ford F-150 Lightning. Source: Mark Phelan/Detroit Free Press
And although it runs on a lithium-ion battery, its design isn’t too far from a regular F-150’s.
Ford is aiming its new EV at everyday truck drivers. This could be a turning point for mass adoption of EVs.
It’s all in this chart, which compares Ford’s performance with EV darling Tesla.
And Dave says it’s just the start of a dominant period for Ford. Over to Dave…
In May 2021, Ford revealed its all-electric F-150 Lightning truck. Overnight, the company went from old to bold in the minds of consumers… and investors.
Ford plans to sell 15,000 electric trucks this year. That’s roughly the same number of units Tesla shipped in 2016.
Next year, Ford is targeting 150,000 electric truck sales. That would be about 3x more than Tesla had in 2017.
If Ford delivers, the company is on pace to produce and sell as many EVs as Tesla. There’s no reason it shouldn’t. We’re talking about a 120-year-old company with more physical resources and infrastructure than Tesla had when it started in 2003.
It has a “market cap” – the sum value of all its outstanding shares – of $90 billion.
That compares with Tesla’s market cap of just over $1 trillion.
And if investor money continues to pour in… simple math favors Ford over Tesla shares. Dave again…
If Ford shares attract just 10% of the investment Tesla shares have, it could rise another 118% from current levels. It would mean another year of this “dinosaur” crushing the wider market.
And Ford’s share price could go even higher. Tesla is an established EV company… and Ford just entered this same space. If more investors recognize this, Ford could approach Tesla-like values over the coming years. That would set Ford up for a 10-bagger from here.
So if you want to play the EV boom, consider adding some Ford shares to your portfolio.
Most investors are still overlooking it as an EV maker. But if Dave is right, that’s about to change… and send Ford shares soaring.
Regards,
Chris Lowe
January 20, 2022