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.
MoneyShow’s Top 100 Stocks for 2021
The top performing newsletter advisors and analyst are back, and they just released their best stock ideas for 2021. Get your FREE copy of MoneyShow’s 2021 Top Picks report here and see why the nation's leading investment experts believe these stocks will significantly outperform the market in 2021.
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.