Thematic Signals #43, Vol. 6
The EV Transition is far bigger than the auto and truck sector
Hey folks, as you likely suspect we at Tematica do a lot of leg work and deep dives when developing our investment themes and refreshing our thematic mosaic. This means that in addition to scouring financial filings, company presentations, and earnings transcripts, we also chat with company management, thought leaders, and other industry movers and shakers. Those conversations complement the fundamental work we do and refresh the thematic tapestry that underpins our various investment strategies.
It's no secret that EVs are a hot topic given the interest in Tesla (TSLA), General Motors (GM), Nio (NIO), Blink Charging (BLNK), Rivian (RIVN), and the EV company invested in by Warren Buffett, BYD Company (BYDDY). However, the passenger car and truck market as well as the commercial truck market are only part of the larger shift away from combustion engines. As we see it, there is a larger thematic wave unfolding - a much bigger EV transition that spans bikes, motorcycles, aircraft, and boating as well as ag and construction equipment. In recent months, General Motors (GM) invested in Pure Watercraft, Deere & Co (DE) acquired Kreisel, and Volvo Construction invested in electric hauling solutions.
To discuss the electric boating aspect of the larger EV transition, Tematica’s Chief Investment Officer Chris Versace recently spoke with Alexandre Mongeon, the CEO of Vision Marine (VMAR). Vision Marine is a small-cap company that is tapping into the shift in marine propulsion and the electric boat market, one that some forecast will reach $16.6 billion by 2031 due in part to emission regulations, fuel costs, and other factors. It embraces what we call an asset-lite approach to manufacturing similar to the one that many chip companies, including Qualcomm (QCOM), uses. And for those who think electric boating doesn’t translate into speed performance, you’re going to be dumbfounded by what you’re about to learn.
Please note, that while we find the Vision Marine story a very interesting one from a thematic perspective, listeners should use this interview for informational purposes only. In no way does this conversation constitute investment advice of any kind. For more see the following disclosure: https://rb.gy/kvfisc. Listeners who want to learn more about Vision Marine can visit its Investor Relations Website at investors.visionmarinetechnologies.com
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