How to invest in the electric car market

The vehicle sector suffered badly in the pandemic, and has since been buffeted by supply-chain problems, inflation and recession fears, says David J. Stevenson. But electric cars are thriving.

Hyundai Ioniq 5 electric car
Three of Hyundai’s brands are among the ten most popular electric vehicles in the US, including the Ioniq 5
(Image credit: © Hyundai)

Car registrations are a key leading indicator. They provide a preview of how the economy will perform in future. In the aftermath of the 2008-2009 financial crisis, world car sales turned into a steadily climbing one-way street. From just over 60 million units in 2009, the global number of passenger vehicles sold grew to around 92 million by 2017, according to the International Energy Agency (IEA). This figure remained unchanged in 2018, however, and declined slightly in 2019 to 88 million.

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Contributor

David J. Stevenson has a long history of investment analysis, becoming a UK fund manager for Oppenheimer UK back in 1983.

Switching his focus across the English Channel in 1986, he managed European funds over many years for Hill Samuel, Cigna UK and Lloyds Bank subsidiary IAI International.

Sandwiched within those roles was a three-year spell as Head of Research at stockbroker BNP Securities.

David became Associate Editor of MoneyWeek in 2008. In 2012, he took over the reins at The Fleet Street Letter, the UK’s longest-running investment bulletin. And in 2015 he became Investment Director of the Strategic Intelligence UK newsletter.

Eschewing retirement prospects, he once again contributes regularly to MoneyWeek.

Having lived through several stock market booms and busts, David is always alert for financial markets’ capacity to spring ‘surprises’.

Investment style-wise, he prefers value stocks to growth companies and is a confirmed contrarian thinker.