Kia EV6 KIA
Car manufacturers are becoming mobility companies while Cutting-edge vehicles are switching from internal combustion engines to electrification. This is a huge opportunity for investors.
Kia Motors unveiled the EV6 last week to gasps in the automotive world. The sleek SUV generates 557 horsepower and blows up the windows.are Lamborghinis, Mercedes, Porches and Ferrari gasoline powered cars.
The message is clear. Electric vehicles are the new smartphones and it's only a matter of time before everyone wants one.
This is still not a popular opinion. Many investors still believe that the widespread adoption of electric vehicles is a decade away. The perception is that while the vehicles are cool and futuristic, they are impractical for most drivers who are concerned about range or cost of ownership.
This is a theory. Unfortunately, this is not confirmed by the facts.
Kia officials claim the EV6 will get 316 miles on a full charge. The SUV can travel 100 km after just 5 minutes of charging. And since the vehicle is based on a skateboard design with a regenerative charge from the electric motor, there are far fewer moving parts and no replacements.regular brakes. The platform consists of a chassis, batteries, electric motors, inverters and integrated circuits for HVAC and infotainment. This should mean a lot less maintenance.
Owners of traditional vehicles should be given this chance. It's amazing how often a simple oil service turns into a $ 600 repair for worn brakes.
Saving money on repairs is an incentive for consumers to switch to EVs. However, the biggest motivator is probably word of mouth. Buyers of electric vehicles get all the coolest advancements in automotive technology first.
There is a good reason for this: digital transformation.
The electrification is a whole new architecture untainted by legacy sub-platforms. Powering up digital innovations like real on-board computers for advanced driving assistance, more functional camera systems, and always-on connectivity is much easier when all of the vehicle's substrate is a battery and the wires from traditional copper have been replaced by optical fibers.
The development of EV platforms is strangely similar to that of smartphones. Just as touchscreen interfaces have changed the face of mobile communications, the digital architecture of electric vehicles is advancing new, futuristic features for the automotive industry.
It 's no coincidence that industry leaders refer to their companies as brands of mobility.
Kia plays on this notion at full speed. Electric mobility meansthe best performance, the safest passenger cabin and the most advanced features of its fleet.
The EV6 with the GT performance package has a 0-100 km / h time of just 3.5 seconds; the towing capacity is 3,500 pounds; detailed navigation in augmented reality; a pair of immersive 12-inch curved flat screens for instrumentation; and software and sensors for Level 2 autonomous driving. And in the blink of an eye, the EV6 is a backup power source for your home. It is a combination of features that is becoming the norm for electric vehicles.
Overall, the category accounted for just 1% of all vehicles sold in 2018, according to the latest news from the International Energy Agency. A year later, 2.7% of all cars and trucks were making used batteries in some capacity. The IEA predicts that this number will increase 20 times by 2030.
One wayone stealthy to play this incredible growth is from Monolithic Power Systems (MPWR) . The Kirkland, Washington-based company designs integrated circuits to make power systems more efficient. It might sound strange, but as cars and trucks shift to electric propulsion, every efficiency is magnified.
The company is currently working with all the major auto parts suppliers in the world. Thanks to Delphi, Bosch, Panasonic Automotive, Magna and Mitsubishi Electric, monolithic integrated circuits reach end customers such as Ford (F) , Nissan, BMW, Mercedes, General Motors (GM) , Volvo, Toyota (TM) , Volkswagen (VWAGY) and Kia.
The EV6 may turn heads as it still flies over expensive Mercedes and Lamborghinis the real story is that electric vehicles are becoming more common. They offerthe best performance, the greatest safety and the best value for money. Automakers have achieved this by building new digital platforms that rely on semiconductors.
Investors should buy Monolithic stocks in weakness. Most of the growth cycle is yet to come.