Update - July 19, 2022

This Key Sector Is About to Flip

Big changes are happening.

Germany had planned to shut down three nuclear reactors for good by the end of this year. But now the country is seriously contemplating leaving them up and running.

Energy demand is simply too high.

Germany is also joining Austria and the Netherlands in firing up old coal plants.

And here in the United States, many folks are wondering what in the world happened to all that talk about energy independence.

The clear takeaway is that the world is going through an energy shakeup.

Anytime such a critical and massive industry is in flux, it creates a slew of possibilities for investors.

The trend is certainly helping our shares of Lucid Group (LCID) move higher.

Almost every day, the statistics are getting better and better for electric vehicles (EVs).

Consumer Change

Earlier this year, most folks thought of an EV as a luxury item or a way to signal their commitment to a cleaner future. There wasn’t much economic incentive – the real game changer – to make the switch.

That’s no longer the case.

“The EV market is on fire,” said Pat Ryan, the CEO of used-car website CoPilot. “The EV market in the last four months has gone up $14,000 – the average used EV is up $14,000. It’s incredible – 26% in four months in terms of increase in used electric vehicle prices.”

With gasoline prices at record highs and no signs of the sort of regulations that would help push prices lower, folks are crunching the numbers and seeing that electric cars are closer than ever to making the math work.

Demand is surging… and so are prices.

That’s great news for Lucid as it extends its product lineup down the market and gets into cars for the everyday driver… not just the luxury-minded speed freaks.

Remember, right now, EVs account for a single-digit proportion of all cars on the road. That’s because, historically, they’ve been expensive and have come with plenty of compromises.

But a report released just last week shows that 26% of Americans now want an electric car to be their next automobile purchase.

That’s big.

Another report showed that interest in the space has surged by 70% so far this year.

That’s even bigger.

But here’s the thing. EVs are only the tip of the spear. They’re the obvious play.

They’re certainly not the only play. And thinking long term, they likely aren’t the best play.

A Millionaire Maker

For that, we go back to the headlines from Europe… or Texas… or virtually anywhere else on the planet that is seeing demand for electricity outstrip supply.

It’s a big trend… perhaps one of the most important of the next decade.

As the world rotates from one source of energy (liquids) to another (electricity), huge shifts must occur. As an investor, it gets me drooling.

Few industries have spawned as many long-term millionaires as the energy space.

And while the days of oil tycoons aren’t quite numbered yet… they’ll have some stiff competition headed their way as the EV evolution takes off.

Musks are replacing Rockefellers.

Few folks are paying enough attention to this space. Many are confused by the recent ups and downs of the oil sector. Even more are worried about how it will affect their daily lives.

That’s the opportunity.

Few times in our investing lives do we see such a powerful rotation in such a massive sector. The folks who play it right will have a shot at very big gains.

It’s not just electric cars and crude prices. There are dozens of ways to play such an influential sector.

Some will be fast-moving, others slower.

We’ve already done quite well on some and will soon be jumping into others.

Right now, though, if you don’t own shares of Lucid… don’t wait to get them. The numbers tell us this sector is moving quickly.

Demand is soaring.

Share price always follows.