- When Biden shut the Keystone pipeline, it was a precursor to soaring gas prices. Today he is blaming Putin.
- Investors are looking beyond government disarray and are piling into EV’s and solar.
- Analysts are zooming in on companies like (OTC PINK: SIRC), Tesla and Sunrun Inc.
Europeans and Americans, as transatlantic partners, have a new shared value: extortionate gas prices. Inasmuch as Biden upended the gas and oil boom by limiting exploration and shutting the keystone pipeline, so did he play right into the Russians hands after their spokesperson threatened with peak oil that would hurt the consumer where it hurts.
Yet investors realize that the middle class are looking beyond the cat and mouse games that have been ongoing for over a decade. Instead, they will seek to free themselves from the yoke of gas and oil extortion through clean energy. Never has there been a time when consumers were as empowered as they are today, to “opt out” of high gas prices. Yet CNBC alerted us to a huge problem consumers won’t be thinking of – and that is what investors are rushing to solve right now.
Opting out of higher gas prices through EV adoption:
The pace at which electric vehicles have been adopted will now accelerate wildly. Peak oil and gas is merely acting as a catalyst. Adding to this the fact that the American consumer is discouraged to buy a house at record real estate prices, with many considering to rather buy an EV in order to incur immediate savings and bypass excessive on gas bills.
The case for investing solar EV charging stations:
The most significant jump in demand will be for sustainable EV charging both at home and when traveling. For many consumers, the decision to buy an EV will be a very emotional one as they watch events in Ukraine. For others, it may simply be a sense of freedom and democracy, which they yearned for during the pandemic – which frankly, remains ever elusive as they are now hit with the next wave: excessive gas bills.
Consumer behavior is so predictable: At an individual level, only after buying their first EV, will thousands of consumers realize that it needs to be charged at home because of an increased demand for public charging points leading to long waiting times. Collectively, large sectors of the population will learn, on their first holiday, that the number of Tesla superchargers which are shared with other vehicle brands, are nowhere near the proverbial drop in the ocean.
Which stocks are considered favorites for solar EV charging?
Finding the best investments in EV solar charging may be a tricky question. Although many would look to BlackRock, Vanguard and Berkshire Hathaway portfolios to decipher real opportunities, there are also fast-moving institutional investors such as IFP advisors and Ancora Family Wealth Advisors who moved into Solar Integrated Roofing Corp (OTC PINK: SIRC). Indeed Vanguard, BlackRock, SSgA Funds Management and Geode Capital management have piled into Tesla – with the latter increasing their Tesla holdings with as much as 4%.
The problem with a Tesla-heavy portfolio is simple: Analysts expect Tesla’s market share to drop from 70% to 20% as quality Japanese automakers like Toyota and Nissan, along with their German and American counterparts enter the EV race. All these vehicles will need charging both at home and during vacation trips – and that is precisely what savvy investors are looking at.
Evaluating Solar Integrated Roofing Corp (OTC PINK: SIRC):
As mentioned in a Bloomberg press release: Solar Integrated Roofing Corp (OTC PINK: SIRC) will Form a Dominant Player in EV Charging Market with their Planned Acquisition of Charging Inst. This announcement was preceded by a record revenue announcement, where in Q3 2022, it saw a 964% record sales jump to $48.2 million from $4.5 million the comparable period the prior year. The annual run rate is now approaching $200 Million.
As an analyst on the Seeking Alpha private investor forum pointed out: “there is an entire lifecycle involved with successful EV solar charging, from roofing, to solar power storage to planning permission and battery maintenance. We see SIRC (Solar Integrated Roofing Corp) as capturing the A to Z of the revenue points associated with the lifecycle.”
A closer look at ChargePoint (NYSE: CHPT)
The near unsavory promotion of Motley Fool which infers an investment in Charge Point can help you become a millionaire is perhaps a step too desperate in pushing this stock. However CEO Pasquale Romano does have a great approval rating and subscription revenue is up 42% within a year. Fast Company also named Charge Point as the most innovative company of the year in 2022.
Considering Tesla, ChargePoint and SIRC:
Tesla may have been a great investment last year and Americans still drive it. But looking ahead at tomorrow: if analysts are correct about a substantial contraction in their market share, then it is easy to understand why some investors are all-in on solar EV charging. It would occur that the revenue models of both ChargePoint and Solar Roofing Corp (SIRC) are so distinctly different, that many investors may take a liking to both stocks. Investors who bet on the future will know better where to look.
Final take:
The rate of change is extraordinary. Rebalancing any portfolio in 2022 will require expertise. As if the pandemic was not enough, now there is a serious war in Europe with a shock at the gas station. Investors may not feel they deserved such a cocktail of change, not even mentioning AI adoption, digital ID’s, a lack of international travel – and now the sudden switch to EV’s when everyone thought they’d postpone the switch until 2025. However, as the T-shirt of one of the 2020 election campaigners stated: “Ridin with Biden” was their preference. Now it will all have to be done with EV’s, because of Biden not “Ridin with Putin”. Ultimately, regardless of the catalysts for change, green and ethical investors see this as an unprecedented opportunity.
