You’d think by the way Tesla (TSLA) took off in 2020 that everyone was buying an electric car. Of course, they’re not — but the market share of electric vehicles is gradually increasing, explains Canada-based stock expert Gordon Pape, editor of Internet Wealth Builder.
According to Allied Market Research, the global electric vehicle market was valued at $162.34 billion in 2019. It is projected to reach $802.81 billion by 2027, registering a compound annual growth rate of 22.6%.
Magna International (MGA) (Toronto: MG) — which is already a giant in the auto parts industry — is consolidating its footprint in the EV space. The company recently announced a $1 billion joint venture deal with South Korea’s LG Electronics.
The joint venture will be called LG Magna e-Powertrain and will manufacture e-motors, inverters and onboard chargers. LG’s CEO called it “a growth opportunity with enormous potential”. Magna’s stock shot up almost $6 in New York after the news was announced.
The shares finished 2020 with a gain of 30%. But I think there is much more to come in 2021 and beyond. This stock was originally selected for my Internet Wealth Builder newsletter by contributing editor Glenn Rogers.
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Meanwhile, Descartes Systems Group (DSGX) (Toronto: DSG), a Top Pick from last year, gained 37%. Descartes specializes in business software designed to facilitate logistics, financial controls, inventory, customs clearance, and freight tracking.
Customers include transportation firms, manufacturers, distributors, retailers, customs brokers, and government agencies. I made this selection before the pandemic.
When it hit, the demand for the company’s services increased significantly as new border regulations were introduced and on-line purchasing increased. Third-quarter results showed nine-month revenue up 6% from the same period in 2019. Earnings per share were ahead 32% year-over-year. The stock gained 37% in 2020.
