Acorn: Ben Graham’s Electric Car
Our play on passenger vehicle electrification. Probably not what you were expecting.
3rd March, 2023
For someone that has never had any interest in cars, the 🐿️ surprisingly managed to find himself as an automotive executive for a few years. In an electric vehicle start-up. Those years are informing this view.
Tesla or other EV-only start-ups? Leaving them to the Robinhood crowd.
Copper? It’s a great related trade and we already have it on as a core position in the portfolio.
We look at the EV battery supply chain.
Battery OEMs? The ‘big 3’ in China / North Asia are the obvious candidates. Market leader, CATL, is tough to buy (China listed) and not cheap.
Battery metals and related technologies? Liquid lithium plays, SQM and ALB probably the best bet but not for us for now. We also give a quick shout out to an existing EV battery tech position in the portfolio, NANO.
So, what’s the Acorn? We are buying Mercedes Benz (‘MBG’). Yes, after a long-winded tour of battery chemistry, high technology and supply chains, buying the 97-ye…