Today I’m looking into a new stock teaser by Enrique Abeyta of Empire Financial Research about his top electric vehicle (EV) pick for 2022.
In short, Abeyta is predicting that a so-called “Master Reset” is coming for the automobile industry and that “one unexpected automaker” will outsell the rest.
“Nearly every bank, brokerage, endowment, insurer, and hedge fund on the face of the planet is pouring a total of $520 BILLION into what I call the ‘Master Reset’ of the automobile industry.”
“… I predict that one unexpected automaker will outsell all of them.
“My #1 EV stock for 2022 just launched a new vehicle that’s up to 50% cheaper than the competition.
“It’s the first electric version of a line of vehicles that singlehandedly makes more money than McDonald’s, Nike, Coca-Cola, and Starbucks.
“If any EV can take this movement mainstream, it’s this one.”Source: https://secure.empirefinancialresearch.com/?cid=MKT636917&eid=MKT664062&assetId=AST256469&page=2
In this post, I’ll give you the lowdown of Enrique Abeyta’s “Master Reset” EV prediction and show you what company I think he’s teasing based on the clues he shared.
Unpacking Abeyta’s “Master Reset” Prediction
Enrique Abeyta’s pitch centered around the EV market and how he believes we’re in the midst of a “paradigm shift” that could be good for some companies and not others, which is often the case when new, disruptive technologies gain traction.
“I’m talking about the industry-wide move to electric vehicles (EVs)…
“A paradigm shift that’s set to erase more than 1 million jobs worldwide… slash the property values in multiple towns and cities across America… and devastate a group of stocks famed for their ‘recession-proof’ status…
“While simultaneously contributing $1.3 trillion to U.S. GDP… adding two jobs for every job lost… and handing savvy investors the chance to see extraordinary gains.”
Abeyta refers to the so-called “paradigm shift” he’s predicting as a “Master Reset,” where a new technology or product comes along that changes an industry very quickly. And he says that this “Master Reset” could result in a “complete overhaul” of the auto industry.
“We’re talking about a complete overhaul.
“Assembly lines will be stripped out of factories and replaced with completely autonomous ones…
“Entire plants will become immediately obsolete and shuttered on the spot…”
According to Abeyta, automakers are investing billions to make sure that they “don’t get left behind by this Master Reset.” And he says the reason why is that the “outsized benefits of owning an EV” will soon be impossible to ignore.
There’s been a lot of hype in the EV space over the past several years, and some people have made a lot of money betting on different EV companies in the space.
So, on the one hand, you could argue that the space is overheated (no pun intended). But on the other hand, Abeyta made a compelling argument as to why we could be at the “tipping point” of rapid mass adoption.
As for the “outsized benefits of owning an EV” that Abeyta talked about in the presentation, he listed six main things.
The first was that EVs could save people money on fuel and maintenance costs. The second and third reasons had to do with bidirectional charging, where you can use your EV to send power back to your home battery and the grid (V2G). Fourth, he talked about how EVs are getting cheaper. Fifth, he believes charging time could be reduced to five minutes. And finally, he talked about how EVs are in “such high demand,” partly because they can be fun to drive.
Why does he believe we’re at a “tipping point” in EV adoption?
Based on the presentation, Abeyta believes we may have already reached the “tipping point” in mass EV adoption because a Bloomberg analysis found that once EVs make up 5% of new car sales (in different countries), adoption takes off at, as he puts it, “lightning speed.”
“That tipping point may have just been reached.
“Bloomberg recently performed an analysis of EV adoption rates around the world.
“They found that once EVs make up 5% of all new car sales, you see adoption take off at lightning speed.”
Regarding the company he’s pitching, Abeyta said in the presentation that he believes one automaker “will lead this Master Reset” and give investors the chance to “turn a small stake into a huge return.”
“This signals that EVs are not just a gimmick or a fad – they’re ushering in a true Master Res et of the auto industry.
“And I believe ONE automaker will lead this Master Reset – and give folks the chance to turn a small stake into a huge return.
“It just launched a vehicle that could easily become the bestselling EV of all time. Heck, it could make the Tesla Model 3 look like the Ford Pinto!”
He also said that he believes the company could “spin off” its EV division and turn that into its own independent company. And he (in a roundabout kind of way) suggested that the company could announce a spinoff as soon as October 27, 2022.
“I believe this automaker’s about to announce a business move that’ll unlock a TON of shareholder value.
“According to my analysis, I’m speculating that it will spin off its EV division and turn it into its own independent company.”
“But here’s my favorite thing about spinoffs… If you own shares of the parent company, you could automatically get tax-free shares of its spinoff for FREE.
“So if you buy this automaker today, you’ll get the chance to own both a great, dividend-paying company with massive margins, tons of cash and industry-leading brand loyalty…
“And a red-hot startup that could command a sky-high valuation as a pure EV play.
“In other words, buying this stock right now is an incredibly low-risk way to invest in the auto industry’s Master Reset that’s just now hitting a tipping point.
“And if you get in before October 27 – its next scheduled earnings announcement – you could get shares for a HUGE discount.”
What’s a spinoff?
A spinoff is where an existing company decides to separate one of its business divisions into its own separate public company. And for those who are already invested in the parent company before it spins off said division, it’s possible to essentially get “free” shares.
I think it’s worth reiterating that Enrique Abeyta is, as he puts it, “speculating” about the potential spinoff. This may never happen. And even if it does, as Investopedia points out, there are some disadvantages to spinoffs, so it’s not a guaranteed moneymaker.
In any case, my point is: take the whole “October 27” thing with a pinch of salt. In my opinion, that is more of a marketing hook to sell newsletters than anything.
What Is Enrique Abeyta’s #1 EV Stock for 2022?
The first set of clues Abeyta shared about his top EV pick were related to the pickup trucks it’s developing. Here’s a summary of what he said in the presentation:
“It just electrified a line of pickups that generate more than $40 billion in a good year.”
“Its new electric model has received nearly 200,000 reservations – forcing the automaker behind it to quadruple its production to meet demand.”
“This pickup’s twin electric motors pack 563 horsepower and 775 pound feet of torque – nearly doubling the stats on the gas model.
“It can tow up to 10,000 pounds and has a 2,000-pound maximum payload.
“It survived an extreme heat test at 118 degrees Fahrenheit – and DOMINATED the coldest February day in Boulder in 123 years.
“And not only is this truck as much as 50% cheaper than the other electric trucks on the market…”
Based on that initial set of clues, my suspicion was that he’s teasing Ford because (among other things) I remember seeing something about it getting 200,000 reservations for its new EV pickup truck while looking into a different stock teaser a while back.
What other clues did he share?
Aside from what we’ve already discussed, Abeyta talked about the institutional investors that own shares in the company he’s pitching and dropped some hints about the value of the shares the company’s Executive Chairman has bought.
“More than half of its shares are owned by institutional investors.
“Bank of America has $1.1 billion worth.
“State Street has backed up the truck to the tune of $3.4 billion.
“Blackrock’s shares are valued at $5.6 billion.
“And Vanguard holds $6.2 billion in stock.”
“What’s more, its Executive Chairman – just bought $4.5 million worth of shares.”
Lastly, he said it’s trading at $12 a share, and the presentation has a July 2022 date stamp, so we’re looking for a company that was trading at around $12 in July.
“And at just $12 a share, it’s also a stock that everyone can afford.”
Given my suspicion that his pick was Ford, that was the first company I looked into. And before long, it became clear that, based on the clues he shared, Enrique Abeyta’s “#1 EV stock for 2022” is Ford Motor Company (NYSE: F).
Here’s a summary of why I say that:
- For starters, Ford’s F-Series trucks have generated “more than $40 billion in annual revenue” during “good years,” according to Bloomberg.
- Second, Ford’s new all-electric F-150 Lightning pickup truck amassed 200,000 reservations in 2021 before closing reservations (which are still closed as of writing this in August 2022, according to Ford’s official website).
- Third, the clues about the truck’s performance match the F-150 Lightening. And while I’m not sure if it’s “50% cheaper than the other electric trucks,” the F-150 is affordable. The base model price starts at less than $40k in the U.S., and according to motorbiscuit.com, it’s even cheaper with U.S. federal EV tax credits.
- Fourth, over half of Ford’s shares are owned by institutional investors as of writing, and the institutions Abeyta listed are holders. What’s more, Ford’s Executive Chairman, Bill Ford, recently “picked up $4.5 million worth of Ford stock,” according to Business Insider.
- Lastly, even though it’s trading higher now, Ford’s stock was sitting at around the $12 mark in July of 2022, when the presentation was released.
Based on all of that, I’m confident that Enrique Abeyta’s pick is Ford.
As for whether or not it’s a good investment, I’ll leave that for you to decide. I have no idea if its stock will go up or down from here, and I’m not a stock picker.
That said, I do think Ford is a great company in general, and with their expansion into the EV market, there could be a lot of room to grow in the years ahead.
Not to mention, their 2022 Q2 year-over-year revenue and profit have increased, and they pay a decent dividend (albeit much lower than inflation, like most stocks).
As for the speculation in the presentation about a potential spinoff, according to a March 2022 CNBC article, Ford is planning on separating, but not spinning off, its electric vehicle business from its legacy autos operations.
In other words, based on my research, there don’t appear to be any “free” shares on the horizon for those hoping for a full-blown spinoff of its EV division.
Nevertheless, the idea of a potential spinoff was only one part of Enrique Abeyta’s “Master Reset” presentation. And if you want all of the details about his recommendation, it’s probably best to see the report he put together called “My #1 EV Stock for 2022.” And the only way to get that is to join Empire Stock Investor.
So if you’re considering doing that, read on.
Recommended: Go here to see my #1 rated stock advisory of 2023
What Is Empire Stock Investor?
Empire Stock Investor is Empire Financial Research’s flagship stock advisory service run by Whitney Tilson and Enrique Abeyta. For $49, you get 12 months’ access to monthly investment ideas, stock market insights, and research in the newsletters.
Subscribers also get access to the report I just mentioned, several other bonus reports related to EVs, and archived research reports and recommendations. There’s also a model portfolio that shows you all the current Empire Stock Investor picks.
Is it worth it?
I’m not a member of Empire Stock Investor, but I have looked into quite a few stock teasers by the guy who founded the company, Whitney Tilson. And over time, I’ve managed to uncover numerous stocks he’s teased as part of pitching this service (and others).
So if you want to know what other companies have been teased as part of different Empire Stock Investor presentations, check out this archive page. I’ve also put together an article about Whitney Tilson’s latest picks, which you might find useful.
At the end of the day, I wouldn’t expect to get rich by subscribing to this or any service. But overall, Empire Stock Investor looks decent based on what I’ve seen, and the people behind it (Tilson and Abeyta) have years of experience in the hedge fund world.
That doesn’t mean you’ll make money following their picks, but at the very least, Empire Stock Investor appears to be a legitimate service and could suit those interested in emerging trends and companies in the tech and biotech space.
Enrique Abeyta’s “Master Reset” prediction is all about how the EV industry could be at a “tipping point” of mass adoption, and his top EV pick for 2022 appears to be Ford.
Whether or not his prediction plays out or not, only time will tell, but I hope you found this post helpful. And if you have any comments you’d like to add, chime in below.
Thanks for reading.