Ok, $TSLA woke the world up by selling more EV than others even with a premium price. On top of that Tesla is also planning on rolling out charging stations for the convenient of Tesla owners. This is a grand plan for the future.
Whoa! Not so fast, Tesla! Not to be left alone, there are companies out there that are in the business of building up the infrastructure of charging station- $ECTY and $CCGI.
Now some of you may think the EV is ahead of our time and we are not ready for it. Some even go as far as postulating that Tesla will fail at the end due to the high cost of batteries that need to run the car. For me, I am not looking at Tesla to represent the EV market in the future. I’m looking at the future of EV in general. Recently, a friend of mine told me he bought a Nissan Leaf because he was offered a chance to lease the EV as a discount for participating in a government sponsored research program to study EV and its interfacing with the assigned charging stations. In order to get the discount, he is required to charge his Nissan Leaf at various approved charging stations for a minimum of 15 days in a month.
To me, this sound like a future that we cannot avoid. It reminds me of the time when we migrated from analog TV to digital TV. While the conversion of gasoline car to electric vehicle may not be as complete as analog TV to digital TV, I can see a general trend of seeing more EV in the near horizon. If this is my belief and vision; then I’ve to buy company that is instrumental in building the charging station infrastructure now when price is still low.
I chose $ECTY over $CCGI simply because $ECTY is more capitalized and listed in Nasdaq as opposed to OTC-bulletin board for $CCGI. Furthermore, $ECTY is in partnership with the US Department of Energy on The EV Project.
Take a look at the weekly chart below for $ECTY:
You can see that price action is bouncing off the 89 xma and is heading back up. In Elliot Wave Theory term, I say that price action is ready to embark on the 3rd wave pattern which is the longest wave in the 5 wave patterns.
For the daily chart below:
You can see that price action today took out the recent pivot high of $1.62 from two weeks ago.
In summary, in order for this “investment” to be fully rewarding, I may have to add it to the long-term portfolio along side with $LRAD, $INO, and $AMRN.
My 2 cents.
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I added more $ECTY to scale-in my position. I may add more down the line until I accumulate what I need.
The biggest hold-back for consumer to buy EV is range-fear. In order to eliminate this range-anxiety besides jacking up the EV price with expensive batteries like Tesla, building out charging stations across shopping centers, office buildings, restaurants, etc will eliminate the range-anxiety and thus open the door for consumers to buy affordable EV.
Currently the Nissan Leaf can handle 80 miles per charge. If there are charging stations at the office buildings, more and more people will replace their 2nd car with an EV to commute tor work. The savings and the low maintenance of EV will be significant.
This is why I believe $ECTY can prosper if the government offers incentive for installation of charging stations in parking facilities across the country.
It is my take that once you eliminate range-anxiety, EV will proliferate very quickly. While Tesla will become the Mercedes Benz of EV, Nissan, GM, Ford, Mitsubishi, Honda, Fiat, etc will be selling plenty of economical EV.
My 2 cents.