That's because Morgans believes the exciting company could be a small-cap ASX share to buy now.

Which small-cap ASX share?

The small cap that Morgans is bullish on is 6K Additive Inc (ASX: 6KA).

It describes itself as a US-based manufacturer and trusted supplier of premium metal powders for additive manufacturing and alloy additions for the aluminium melt industry. Importantly, it notes that all its products are made from sustainable sources.

The company highlights that its manufacturing process produces the highest quality metal powders that are truly spherical, void of porosity and satellites with better unit economics than competing technologies.

What is the broker saying?

Morgans is positive on the company's outlook, highlighting that it has a growing customer base filled with some very large names. It said:

6K Additive (6KA) is a US-based advanced materials company that upcycles metal waste into engineered feedstock, producing high-value powders and alloys for aerospace, defence, medical, energy, and industrial applications. The company delivered 4Q25 revenue of US$5.6m (representing a run-rate of ~US$22.4m pa) with over 100 active customers including ABB, Boeing and Ford.

6KA has a potential sales pipeline of ~US$250m pa and plans to use proceeds from its recent IPO (Dec-25) to consolidate and scale its operations in the US. This will result in a 5x increase in powder production capacity (from 200mt to 1,000mt) and deliver significant margin improvement and production efficiency.

In light of this, the broker has initiated coverage on the small-cap ASX share with a speculative buy rating and $1.30 price target.

Based on its current share price of 88 cents, this implies potential upside of almost 50% for investors over the next 12 months.

Commenting on its speculative buy recommendation, the broker said:

We initiate coverage on 6KA with a SPECULATIVE BUY rating and a target price of $1.30. Backed by proven technology, a closed-loop model, and broad customer validation, we believe the company is well-positioned to benefit from strong demand in metal additive manufacturing and US government initiatives to reshore the sourcing and processing of critical minerals.

Trading on 3.7x FY27F (Jun Y/E equivalent) EV/Revenue versus a domestic peer median of 9.5x, we view 6KA's valuation as relatively attractive – though suited to more assertive investors.

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At the time of writing, the lithium miner's shares are up 1% to $1.03.

Why are Liontown shares making a move?

Investors have been buying the company's shares this morning after responding positively to the release of an announcement this morning.

According to the release, Liontown has executed amendments with auto giant Ford Motor Company (NYSE: F) to the debt facility agreement and spodumene concentrate offtake agreement from the Kathleen Valley Lithium Operation in Western Australia.

The company notes that the executed amendment to the facility agreement strengthens Liontown's near-term liquidity. That's because it will defer principal and interest due to Ford over FY 2026 for 12 months, with the principal to be repaid over the remaining term of the loan. All other conditions, including interest margin, term, and security, remain unchanged.

In addition, the 512,500 dmt to be delivered to Ford under the offtake agreement from 1 January 2027 onwards has been reduced to a total of 256,250 dmt.

No volumes will be delivered to Ford in calendar years 2027 and 2028. Ford also has the option to elect to be released from its take-or-pay obligations.

Management highlights that the changes to the offtake agreement will give Liontown the opportunity to place further volumes in the market, including giving it the ability to sell additional tonnes into the spot market to encourage transparent pricing or to pursue new strategic partnerships.

Liontown's managing director and CEO, Tony Ottaviano, was pleased with the amendments. He said:

The original Ford agreement in 2022 was instrumental in financing and developing Kathleen Valley. With production now underway, these amendments mark the next phase of our relationship.

For Liontown, this agreement provides improved near-term balance sheet liquidity, retaining our debt facility with Ford, while giving the Company strategic flexibility to sell greater volumes of spodumene concentrate via spot sales or to new strategic customers as the lithium market continues to evolve.

Should you invest?

Unfortunately, most brokers are feeling bearish about the lithium miner. For example, last week Macquarie put an underperform rating and 65 cents price target on Liontown's shares. This is almost 40% lower than its current share price.

Elsewhere, the team at Ord Minnet is almost as bearish. Its analysts recently put a sell rating and 70 cents price target on its shares. And UBS put a sell rating and 80 cents price target on them.

The post Why are Liontown shares pushing higher today and should you invest? appeared first on The Motley Fool Australia.

Jim Farley, the Chief Executive Officer (CEO) of Ford since 2020, delivered remarks about artificial intelligence at the Aspen Ideas Festival. 

Farley predicted that artificial intelligence could wipe out up to 50% of all white-collar jobs. 

Farley has become the latest high-profile executive to sound the alarm on how artificial intelligence advancements could impact the workforce. 

Last month, Amazon CEO Andy Jassy echoed a similar tone. He suggested the corporate workforce is likely to reduce thematically in the coming years. 

In a memo to employees, Jassy wrote:

We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs…It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.

What lies ahead?

Artificial intelligence is developing at a rapid pace. 

According to Grand View Research, the global artificial intelligence market was valued at US$279 billion in 2024. It is expected to grow at a compound annual growth rate of 36% between 2025 to 2030. 

Grand View Research suggests, "The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing."

Those in administrative roles are becoming increasingly concerned about being 'automated out' of their roles due to AI developments. However, with humanoid robotics gaining traction, other industries could be under threat, too.

How can investors prepare themselves?

While these developments threaten job security for many workers, they open a whole spectrum of opportunities for investors. 

To get ahead of the curve, investors should carefully consider artificial intelligence related opportunities. That is, companies that are likely to grow profit as a result of AI advancements. 

The most obvious stock pick is US-listed Nvidia Corp (NASDAQ: NVDA). Nvidia has been at the forefront of the AI revolution over the past few years, designing and manufacturing graphics processing units (GPUs).  

However, beyond Nvidia and the other technology giants, there are opportunities in other sectors. 

For example, US listed Hims & Hers Health Inc. (NYSE: HIMS) is leveraging AI solutions with the goal of becoming the "Apple of healthcare". In May, the company appointed Mo Elshenawy to lead AI integration across diagnosis, treatment, and delivery. 

Of course, if investors want diversified exposure to AI-related stocks but don't want to pick a winner, the Global X Artificial Intelligence ETF (ASX: GXAI) is an option. For a management expense of 0.57%, the GXAI ETF invests in 85 companies that stand to benefit from the development and use of AI.

In the local market, ASX-listed NextDC Ltd (ASX: NXT), Australia's leading independent data centre operator, could be well-positioned to benefit from AI adoption.

As reported by The Motley Fool's James Mickeboro, broker Morgans currently has a buy rating and $18.80 price target on its shares.

The post Ford CEO makes stunning prediction about artificial intelligence appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There are a few things that United Parcel Service (NYSE: UPS), Walt Disney (NYSE: DIS), and Ford Motor Company (NYSE: F) have in common. They are Wall Street juggernauts, components of the S&P 500. The stocks all pay a dividend; two of the three currently top a 5% yield.

They're also out of favor. UPS, Disney, and Ford are trading 22%, 28%, and 29% below their 52-week highs. Stretch out the timeline, and the three stocks are trading 45% to 60% below their all-time highs set in either 2021 or 2022. This isn't a problem. It's an opportunity. Let's dive into why these are three great dividend-paying S&P 500 stocks that you can hold for the long haul.

1. United Parcel Service

Brown has been more black and blue lately. The provider of parcel delivery and supply chain solutions saw its revenue slide 9% to $91 billion last year. Profitability took an even bigger hit.

The near-term challenges are real. Striking a five-year deal with the UPS Teamsters union last summer locks its workforce in place through mid-2028, but it comes at the expense of a margin-gnawing spike in labor costs over the past year. The increases will continue through the next four years, but it will be more manageable.

It's no fun when an income statement is burning at both ends, and this could be particularly problematic for income investors. UPS has increased its quarterly distributions for 15 consecutive years. The rising payouts and shrinking share price find the shares yielding 5% right now. Is this sustainable if business continues to contract as expenses keep expanding?

This doesn't have to be an accordion of cacophony. UPS rolled out layoffs earlier this week after a much larger sea of pink slips earlier this year. Analysts see a return to revenue growth in the second half of this year, followed by a bottom-line recovery in 2025. If they're right, UPS will have wiggle room to keep its streak of dividend hikes coming. You can also pick up UPS at a reasonable 14 times next year's projected earnings.

2. Disney

Another household name with an attractively depressed share price is Disney. The media stock is moving lower for the sixth consecutive month. You can buy Disney for less than 19 times forward earnings.

There are a lot of things going well for the company, despite its stock chart going the other way. Disney returned to box office dominance this summer with the world's two highest-grossing films of 2024, and it has two movies coming out over the holidays that should fare even better. Disney+ is finally profitable. There are some near-term hiccups at its theme parks and a more long-lasting problem with its legacy media networks, but the sum of all of these mouse parts points to healthy growth in the near future.

Disney's current yield of 1% is much lower than the other names on this list, but the entertainment bellwether did boost its semiannual distributions by 50% earlier this year. The bullish play here will still be in the form of capital appreciation over dividend checks.

3. Ford

The highest yield and lowest earnings multiple on the list belongs to Ford, but let's start with a brake check. Growth has slowed to single-digit upticks at the automaker for three consecutive quarters. Trading at a P/E ratio of 11 sounds great until you realize that it's based on its market cap of $42 billion. Ford's enterprise value is $168 billion once you consider its debt.

The car market is cyclical, and Ford is struggling to get the balance right between its electric vehicles and its more traditional rides. The current 5.7% yield will reward patient investors, but the hefty disbursements are at the mercy of Ford stepping on the accelerator again and controlling costs. Analysts see flat revenue and earnings growth for Ford next year, and we know how drivers feel about flats. The bullish catalyst here is that falling interest rates could spur fresh interest in big-ticket purchases. Aren't you due for a new car? Ford hopes that you turn to the iconic car manufacturer.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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At the time of writing, the lithium developer's shares are up 11% to 20 cents.

Investors have been buying Lake and other ASX lithium shares today amid a broad market rally following a strong night of trade on Wall Street.

Unfortunately, while today's gain is undoubtedly great, it doesn't change much on a longer-term basis.

What if I'd bought Lake Resources shares almost 18 months ago?

It wasn't that long ago that the market was in love with Lake Resources shares and saw huge promise from its Kachi operation in Argentina.

Especially after the company signed a memorandum of understanding with auto giant Ford Motor Co (NYSE: F) for 25,000 tpa of lithium from Kachi. This led to Lake Resources shares climbing as high as $2.31 in April 2022.

If I had invested $2,000 into the company's shares at the peak, I would have received 866 units.

Today those shares would have a market value of just $173.20. That's over $1,800 of my hard-earned money gone in less than 18 months.

Thankfully, I didn't invest in Lake Resources shares.

What went wrong?

Investors have been selling off this ASX lithium share for a number of reasons. The most recent was its significantly lower-than-expected production guidance and higher costs. The latter is so high that it really calls into question whether the Kachi project is even viable.

Lake Resources expects to deliver lithium carbonate production of 25,000tpa in 2027. This compares to its previous guidance of 50,000tpa of lithium carbonate production by 2024.

As for costs, management estimates that its phase one plan has a capital cost of US$1.1 billion to US$1.5 billion with a run rate operating cost of US$4.70 to US$7.10 per kg. The company's pre-feasibility study results for 25,500tpa had a capex of US$544 million and lower costs per kg.

Lake Resources currently has a market capitalisation of ~$270 million. This means it will need over 4 times its market capitalisation in funding to cover its phase one plans.

The post If I'd bought $2,000 of Lake Resources shares in April 2022, here's how much I'd have left appeared first on The Motley Fool Australia.

The sensational rally resulted in shareholders of the electric vehicle company enjoying a 40% gain in the space of a fortnight, as shown below. However, the green streak came to an end overnight, with enthusiasm momentarily depleted, allowing shares to settle 0.7% lower at US$256.79 apiece.

The rapid ascension has no doubt left some onlookers wondering what could be behind such an energised reception. So, let's pause for thought and reflect on the recent driving force behind the Tesla share price and where to next.

Why has this EV maker been charging upwards?

Firstly, there could be a whole host of reasons — both at a macro and company level — that have propelled Tesla shares higher. However, the most pertinent developments of late likely relate to its EV charging network.

In the past two weeks, both Ford Motor Co (NYSE: F) and General Motors Co (NYSE: GM) have announced that they will adopt Tesla's North American Charging Standard (NACS) across Canada and the United States moving forward.

Essentially, the hope is it will remove a barrier for would-be Ford and GM buyers that might have been concerned over a limited number of charging stations. As part of the agreement, a network of more than 12,000 Tesla Superchargers will become available to GM and Ford EV owners.

At the time of writing, Stelanntis — another automotive company — is rumoured to be 'evaluating' the adoption of NACS as well.

What could be next for the Tesla share price?

Looking ahead, the question on everyone's mind is where to next for the Tesla share price. In the view of KGI Securities analyst Jennifer Liang, the next 12 months could see the EV company reach US$335 per share.

Updating her target price last week, Liang cited Tesla's investments in manufacturing and battery technology as positive forward drivers. Additionally, the analyst believes the Inflation Reduction Act will provide a boost to sales while also collecting billions in credits for battery production.

In contrast, recent research published by Morgan Stanley's Adam Jonas reads less bullish. Jonas wrote:

Tesla is in the midst of an industry-wide EV price competition with potentially falling margins and EV market deceleration (still growth — but at a slower rate). If the company wasn't benefitting from significant government incentives (IRA) and price cuts (30% on Model Y YTD), we question how much cash flow Tesla's would be generating.

Following on, Jonas still thinks Tesla is underappreciated by the market in some regards. As such, Mogan Stanley holds a $200 price target on the company but with an overweight rating.

The Tesla share price is up 137.5% so far this year — exceeding the 31.2% YTD return notched up by the Nasdaq Composite Index (NASDAQ: .IXIC).

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In morning trade, the ASX titanium share was up as much as 76% to a record high of $1.67.

IperionX's shares have since pulled back a touch but currently remain up 53% to $1.45.

Why is this ASX titanium share rocketing higher?

Investors have been scrambling to buy the company's shares today after it released a major announcement.

According to the release, the company has agreed a Scope of Work (SoW) with Ford Motor Company (NYSE: F) for the supply of titanium metal components to Ford Performance using its unique 100% recycled, low-carbon titanium metal.

Ford Performance is the high-performance and racing division of the Ford Motor Company. It is responsible for a range of performance cars such as the F150 Raptor, Bronco Raptor, Mustang Mach 1, and the Shelby GT500.

Management notes that the Ford SoW follows a detailed program of quality and strength testing of IperionX's low-carbon, circular titanium metal. Ford's Sustainability and Advanced Materials divisions undertook a range of testing procedures, verifying that IperionX's titanium surpassed the required parameters set under international standards.

What's next?

The release reveals that the titanium components are set to undergo a comprehensive "finishing study" to assess a range of potential surface finish of parts. The insights gained from this SoW will guide the final design, and unit costs, for a range of low-carbon titanium components for Ford Performance production vehicles.

IperionX's CEO, Anastasios Arima, said:

Ford has a commitment to achieve carbon neutrality by 2050. We are proud to partner with Ford to accelerate the deployment of a sustainable, circular titanium supply chain for the global automotive market. Our low-carbon titanium metal is uniquely made with 100% recycled titanium and can significantly improve automotive supply chains by using high-strength titanium components with nearly half the weight of steel.

IperionX is re-shoring a lower cost and more sustainable U.S. titanium supply chain – shifting from a linear supply chain to a lower carbon, circular titanium supply chain – recycling titanium scrap to manufacture low carbon, high performance titanium components. We are pleased that Ford has partnered with us to improve automotive supply chains and scale our low-carbon, circular, titanium business.

This ASX titanium share now has a market capitalisation of approximately $280 million. This means the announcement of the deal has added around $90 million to its valuation today. Whether this deal justifies that, time will tell.

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What happened

On an only modestly red day for the stock market, with major indices all down just a fraction of a percent each, shares of automotive stocks are getting hurt more than most. Tic-tac-toe, three in a row, shares of Ford Motor Company (NYSE: F), Tesla (NASDAQ: TSLA), and Nio (NYSE: NIO) are down 2%, 1.9%, and 5.9%, respectively.

Each of the three ran into a fender bender of modestly bad news today.    

So what

In the case of electric vehicle (EV) specialists Tesla and Nio, it's basically Wall Street to blame for today's declines. Granted, yesterday's announcement that Elon Musk has apparently decided he will buy Twitter after all is probably still having an effect on Tesla stock -- but there's new news, too.

Specifically, this morning, Japan's Mizuho bank lowered its price target on Tesla stock, citing "logistics challenges" that prevented the company from hitting its targeted delivery number for the last quarter. Although Tesla did still grow its deliveries 42% year over year, and grew its production numbers 54%, the miss necessitates a price target cut to $370 per share, says Mizuho today in a note covered by StreetInsider.  

Similarly, Mizuho cut its price target on China's Nio by about 5%, to $40 a share, citing -- surprise! -- "softer SepQ deliveries" and consequently lower expected earnings in the quarter. Indeed, across the EV industry, Mizuho says getting the needed parts to build EVs, and getting transportation to deliver them where they're going, remains "a challenge." Long term, Mizuho is still a supporter of both Tesla and Nio stocks and maintains buy ratings on both companies.  

Mizuho just isn't sure the stocks will go up as much as it previously hoped they might.

Now what

Now, what about Ford -- which, for all its electric ambitions, still remains today primarily a maker of SUVs and trucks powered by the venerable internal combustion engine? Well, earlier this week, as you probably heard, Ford reported a 9% decline in sales for September -- and an 18% decline in trucks. The company blames parts shortages for sidelining as many as 45,000 vehicles that remain only half-built because they don't have the parts needed to complete them.  

For that matter, even Ford's small but growing electric operation is apparently not immune from the problems plaguing its competitors. Last night, Ford announced that it's raising the price of its base model F-150 Lightning electric pickup truck by $5,000 -- not because it wants to, but because it has to, in order to absorb the costs of "supply chain constraints, rising material costs and other market factors." 

After this hike and the first round of price increases, announced less than two months ago, the price of the F-150 Lightning is now up an astounding 30% over its originally announced base price of just under $40,000 last year.

Now, from one perspective, Ford charging more money for a truck might be considered a good thing -- more money for Ford, right? But if all the extra money coming in one door immediately goes out another to pay Ford's suppliers, then there's really no net gain for the company or the stock. To the contrary, as Ford F-150 Lightning prices rapidly run up from "It's a bargain!" territory to "Hmm, maybe I should just buy a Rivian truck" levels, the good publicity and sales advantages Ford initially enjoyed from introducing the Lightning are already starting to evaporate.

Granted, at a lowly 4.3 times trailing earnings, I still think Ford stock looks cheap enough to buy. But based on today's bad news, I can't blame other investors for deciding Ford might actually need to get a little bit cheaper. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock fell today appeared first on The Motley Fool Australia.

Electric vehicles (EVs) will be one of the large secular growth stories of this decade. BloombergNEF researchers estimate that annual unit volumes for plug-in EVs will grow from 6.6 million in 2021 to 20.6 million in 2025.

Considering how much a new car costs, this is a trillion-dollar revenue opportunity for companies to go after.

That is why so many automakers -- from EV pioneer Tesla (NASDAQ: TSLA) to upstarts like Rivian to legacy automakers like Ford (NYSE: F), Volkswagen, and Toyota -- are investing so much money in their EV product lines.

But which stocks among these automakers provide the best investment opportunity at current prices? Let's look at two key players -- Tesla and Ford -- and identify which stock looks most likely to 5x in the shortest time period.

Tesla: The EV pioneer

You probably know Tesla as the company that has driven the EV revolution over the past 10 years. With four models currently for sale and a few more in development, Tesla is the EV leader in many important markets around the world.

In 2021, the company delivered 936,000 vehicles to customers and has grown its production capacity at a rapid rate over the past decade.

Last year, the company reported $53.8 billion in revenue and $6.5 billion in operating income. With $17 billion in cash shoring up its balance sheet, investors are betting that Tesla can capture a good chunk of the projected bump in annual EV sales, driving its annual deliveries into the millions.

Tesla is also making bets on self-driving technology, solar energy, and battery storage deployments. However, it is difficult to estimate how much financial value these segments will provide considering solar/battery storage has negative gross margin right now, as well as the uncertainty around full self-driving technology, which many researchers think is years and years away. For now, it is probably smart for investors to not include these divisions when valuing Tesla stock.

As of this writing, Tesla has a market cap of $730 billion, one of the largest in the world. Tesla stock has a trailing price-to-sales ratio around 14 and investors are already pricing in a lot of growth over the next few years.

In order for the stock to 5x to a market cap of $3.65 trillion, Tesla would need to greatly exceed investors' high expectations.

Ford: Making the EV transition

Unlike Tesla, Ford is a legacy automaker that still makes the majority of its sales from cars with internal combustion engines (ICEs).

Over the next decade, the company plans to invest heavily in EV operations, with $50 billion in planned spending from now until 2026. According to management, this will enable the company to get to 600,000 in annual EV manufacturing capacity next year and 2 million by 2026.

Looking at Tesla's financials as a comparison, this could translate into over $100 billion in EV sales for Ford if it can execute on these objectives.

To do so, Ford has a robust lineup of EVs, including the Mustang Mach-E, F-150 Lightning, and E-Transit commercial van. There is a lot of uncertainty, though, as the company has not gotten many vehicles out on the road.

But like with Tesla and the other automotive manufacturers, with so many new sales to go after, there is a gigantic financial opportunity here.

As of this writing, Ford has a market cap of $54 billion and $29 billion in cash and equivalents. In order for the stock to 5x, investors would need to value Ford at a market cap of $270 billion, or less than 10% of what Tesla would need to be valued at in order to achieve the same jump.

A matter of math

I think it is clear that Ford is more likely than Tesla to 5x, simply because Tesla's stock is valued so richly.

If Ford is able to hit $200 billion in annual sales after ramping up EV production and raise its operating margin to 15% (which is close to Tesla's), the company would be generating $30 billion in operating income by 2026.

Using a typical earnings multiple for automakers of 10, that equates to a market cap of $300 billion, which clears the 5x hurdle.

Now let's do the same calculation for Tesla. In order to hit an earnings multiple of 10 on a market cap of $3.65 trillion (Tesla stock's 5x hurdle), the company would need to be doing $365 billion in operating income a year.

Assuming an operating margin of 15%, this would require over $2.4 trillion in annual sales. Achieving a 5x jump does not seem reasonable unless you think investors will perpetually value Tesla at an earnings multiple much higher than the rest of the industry. 

I don't think either Ford or Tesla will 5x within the next five years. But if I had to bet on one stock doing this, it would be Ford, simply because of the starting valuation.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post More likely to 5x first: Tesla vs. Ford? appeared first on The Motley Fool Australia.

There's no question the $4 trillion energy sector has been home to the best-performing stocks on the market recently.

Over the past year, energy stocks have gained 72% on average while the next closest sector, utilities, rose less than 15%. In comparison, the broad market S&P 500 Index (SP: .INX) index lost 1%, and that started long before Russia invaded Ukraine.

It hasn't been much different in 2022 either, with the oil and gas stocks, in particular, leading the way. Energy is again on top with a 58% gain as utilities again ranked second with a less than 5% increase in value.

Yet over longer periods, the high cost of exploration and resource exploitation has made the energy sector a lagging sector for investors.

Technology stocks were the market darlings only until recently and over the past decade energy stocks ranked dead last with simple double-digit increases when virtually every other sector was sporting triple-digit gains. 

Oil and gas stocks are the stars these days, but is now the time to buy them?

Beating up on big oil

President Joe Biden recently said he hoped Americans could come out of the current energy crisis less dependent on fossil fuels. Alternative energy sources are already a rising component of the world's energy consumption, about 30% of the total, and that number is continuously growing.

Where the energy sector accounted for 29% of the stocks weighted in the S&P 500 in 1980, today they represent just 3.7%. Back then, seven of the top 10 stocks in the popular index were oil and gas stocks, led by ExxonMobil (NYSE: XOM); today there are none. 

And in a sign of how the world is further changing, Exxon was booted out of the Dow Jones Industrial Average in 2020 -- a spot it has held for nearly 100 years -- leaving only Chevron (NYSE: CVX) to represent the industry. Oil and gas stock investing isn't what it used to be.

Oil, oil everywhere

Yet that doesn't mean you shouldn't invest in the energy sector. It is simply too ingrained in the global economy to disappear.

For example, the U.S. Energy Information Association forecasts global "conventional" light-duty vehicles will nearly double from 1.31 billion in 2020 to 2.21 billion at their peak in 2038, but that will still far outstrip electric vehicle usage.

General Motors (NYSE: GM) has said it wants to produce only electric vehicles (EVs) by 2035 while Ford Motor Company (NYSE: F) is shooting for 40% of its fleet.

Tesla (NASDAQ: TSLA), in contrast, says it wants to sell 20 million EVs by 2027. However, the EIA predicts EV usage will grow from just 0.7% of the global LDV fleet to 31% in 2050, or just 672 million vehicles. Not an insignificant number, but still trailing gas-powered vehicles.

Petroleum products account for about 90% of all energy usage in the U.S. transportation sector, with gasoline accounting for 56% of the total.

Distillates, primarily diesel fuels, accounts for another 24%, and jet fuel, 9%. And jet fuel usage is growing rapidly with the EIA expecting consumption to increase at a faster rate than any other liquid transportation fuel through 2050.

And fossil fuels are in almost every product consumers use today, with petroleum appearing in everything from cosmetics and personal care products, to everyday items such as smartphones, computers, TVs, shoes, sporting goods, flooring, furniture, and medical supplies.

Grand View Research estimates the global petrochemicals market size was valued at $556.1 billion in 2021 will grow at a 6.2% compound annual rate through 2030, driven primarily by construction, pharmaceuticals, and automotive needs, as well as our industrial economy.

And though petroleum itself is not as important of a component for plastics manufacturing, natural gas and natural gas processing is. 

Still a gusher of an opportunity

The chances that alternative energy replaces fossil fuels for the foreseeable future are incredibly low. That's why I think the energy sector generally, and oil stocks in particular, are great buys, even today at their elevated levels.

Fossil fuels will be around for a long, long time meaning investors are to look very closely at some of the best energy stocks in the space as a long-term growth investment.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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There are about 724 billionaires in the U.S., according to Forbes, and more than 2,700 globally. They come from various backgrounds and made their fortunes in various ways. But when you look at their attitudes and behaviors as a whole, there are some traits many of them have in common.

While few of us will ever become billionaires, it may be helpful to know what some of those common traits are to prepare for our own journey to success and financial independence. Here are three key things that billionaires do that many of us don't, in the words of the billionaires themselves.

1. They're frugal

"Do not save what is left after spending, but spend what is left after saving," Berkshire Hathaway Chairman and Chief Executive Officer Warren Buffett once said. This quote encapsulates a mindset that helped Buffett become one of the world's richest men. You've heard the stories -- Buffett eats at McDonald's, lives in the same house he bought in Omaha in 1958 for $31,500, buys used cars, and used a cheap flip phone until a couple of years ago.

But these are habits that allowed him to save more and invest more, which drove his wealth. He's not alone among frugal billionaires. Microsoft co-founder Bill Gates, who admitted a few years ago to wearing a $10 watch, said his frugal habits were ingrained in him as a young man. "My 20-year-old self is so disgusted with my current self. You know, I was sure I would never fly anything but coach and you know, now I have a plane," Gates said a couple of years ago, reflecting upon the frugality that made him what he is today.

And Jeff Bezos, founder, former CEO, and executive chair at Amazon, said frugality, for him, was the mother of innovation. "I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out."

2. They think big

"Life can be so much broader, once you discover one simple fact, and that is that everything around you that you call 'life' was made up by people who were no smarter than you. And you can change it, you can influence it, you can build your own things that other people can use. Once you learn that, you'll never be the same again," said the late Steve Jobs, founder of Apple.

Jobs lived this, changing the world with his innovations at Apple. Now, this doesn't mean we have to go out and invent the next world-changing technology, but experts say that most billionaires think big and aren't deterred in their endeavors by perceived constraints, whether that's their education level or something else. Obviously, a lot of hard work and strategic thinking goes into being successful in any venture, but it all starts with having that positive mindset and thinking big, as Jobs described.

Or, as Henry Ford, founder of automaker Ford once said, "If you think you can do a thing or think you can't do a thing, you're right."

3. They're not afraid to fail

"My dad encouraged us to fail. Growing up, he would ask us what we failed at that week. If we didn't have something, he would be disappointed. It changed my mindset at an early age that failure is not the outcome, failure is not trying. Don't be afraid to fail," said Sara Blakely, founder of hosiery and women's underwear brand Spanx, who, in 2012, became the world's youngest, self-made female billionaire.

This philosophy, ingrained in her at a young age, constantly pushed her out of her comfort zone to take on new challenges and risks. Many people avoid actions or activities for fear of failure, but Blakely said that not being afraid to "fail" allowed her the freedom to constantly try new things until she hit on that billion-dollar idea. It helped her avoid the true failure of not trying.

One thing you have in common with billionaires

These are just a few common traits but, certainly, much more goes into becoming wealthy and successful. But it's really not about becoming a billionaire -- it's about being successful in however you define success. Many billionaires say they weren't motivated by money, but rather it was an outgrowth of their passion and purpose.

As for the one thing we all have in common, Richard Branson, founder of Virgin Galactic, among other ventures, said it best: "One thing is certain in business, you and everyone around you will make mistakes." But it is from those mistakes, whether it is in business or investing, that you learn, adapt, and create new opportunities for success.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Seemingly every month, a legacy automaker makes an announcement outlining bold plans to decarbonize its operations by investing in electric vehicles (EVs).

Simultaneously, we've seen plenty of new players enter the space, including Chinese automakers like Nio (NYSE: NIO) and U.S. players like Lucid Group (NASDAQ: LCID) and Rivian Automotive (NASDAQ: RIVN). A few years ago, Tesla (NASDAQ: TSLA) seemed like the only true EV investment opportunity. Today, the industry feels more crowded and competitive than ever before.

If you're wondering how to navigate the noise with sound investment ideas, you've come to the right place. Here's the latest on Lucid and Rivian, what makes Tesla unique, and some other investment ideas worth considering now.

Well-deserved praise

Lucid and Rivian have plenty in common. They both have a lot of cash, impressive technology, ambitious plans to disrupt the industry, and are very expensive stocks.

Lucid's competitive advantage is its battery technology, which has allowed it to achieve a longer range and faster charging from a compact configuration. Its battery efficiency of more than 4.5 miles per kilowatt hour is higher than the 4 miles/kWh of Tesla's Model S and other luxury sedans. Lucid stock was the best performing among automakers in 2021 mainly because it delivered on its major promises.

Lucid's initial range and horsepower projections for its Air Dream Edition were met with skepticism. But then the Environmental Protection Agency (EPA) rated the long-range version of the Air Dream Edition with a better-than-expected 520 miles of range and 933 horsepower, and the performance version of the Air Dream with an estimated range of 471 miles and 1,111 horsepower.

This stamp of approval was just one factor of many that made the industry take Lucid seriously. It has expanded its manufacturing capacity, has over 17,000 reservations for its Air line, and plans to expand capacity even further while rolling out lower-priced Air versions in 2022.

Like Lucid, Rivian has a large existing manufacturing capacity, plans to expand in the years ahead, and has strong demand for its vehicles. The company is looking to disrupt the electric van, truck, and SUV market. Although it began deliveries in the third quarter, the results came in lower than Rivian had guided for. However, a bright spot was that pre-orders for its R1T truck now stand at over 71,000, and that's on top of R1S reservations and the 100,000 delivery vans Amazon pre-ordered.

Rivian was awarded the Motor Trend 2022 Truck of the Year award and Lucid received the Motor Trend 2022 Car of the Year award. Investing in either company is a bet that their technology will hold up as new players enter the space, that they will grow production over time, and one day achieve consistent positive operating cash flow and profitably. It's a tall order, which is why both companies are some of the highest-risk options in the industry.

A dynasty far from decline

Despite the potential of companies like Lucid and Rivian, the idea that either is the "next Tesla" is doubtful. Tesla is the industry leader and is probably going to remain the most valuable automaker for decades to come.

Its invaluable first-mover advantage, incredible technology, and years making mistakes (and learning from them) have made it a battle-hardened veteran with one of the highest operating margins in the industry. Put another way, Tesla may not produce the most cars, but it does convert more revenue into actual profit than its competitors.

Its renewable energy and energy-storage segments are growing and also very profitable. In sum, betting against Tesla is a bad idea, especially if the company continues to retain its high profitability even as it grows revenue at a breakneck pace.

Less limelight, but lots of potential

The EV industry is so much more than new automakers or Tesla becoming even bigger. Lucid and Rivian will also have to compete against a crowd of legacy automakers backed by much larger workforces and capital. Make no mistake, these companies are not just going to sit idly by and watch newcomers gobble up market share that took them decades to build.

The legacy automaker that has arguably done the best job fostering real change is Ford (NYSE: F). It may surprise you to learn that Ford stock more than doubled in 2021, making it the second-best performing automaker behind Lucid for the year. Its new management team is keen on investing heavily into EVs to dominate the electric truck industry and compete in electric SUVs -- and it'll soon be making its own batteries and producing vehicles at its new mega factories in Tennessee and Kentucky.

Another way to invest in the EV industry is through infrastructure companies like ChargePoint (NYSE: CHPT), the largest Level 2 (240 volt) charging network in North America. It's quickly growing its Level 3 DC fast-charging network, and continues to look for ways to monetize its subscription business. Although ChargePoint's growth and path to profitability are attractive, some investors may prefer to go with a basket of EV charging stocks.

Zoom out and focus on the big picture

Real gains aren't made when a company beats a single quarter's estimates. Rather, they are made over the long term as new companies evolve into paradigm-shifting growth stories that go on to define an industry. That's exactly what Tesla did to the auto industry. And while there may never be another company quite like it, the auto industry has a very good chance of looking much different a decade from now than it does today.

An investor's task is to determine which companies have the best chance of succeeding and avoid those that aren't making the necessary capital commitments to prepare their businesses for the future.

It isn't hard to envision an EV stock like Lucid taking market share from today's leading luxury sedan makers. Or Rivian taking a chunk out of Jeep's business. Or Ford emerging from the shift from the internal combustion engine (ICE) to the electric motor with a tighter grasp on the global truck market. Or ChargePoint expanding its footprint across North America and Europe.

No matter how good a company's prospects look, the reality is that no one knows exactly which of them will emerge victorious, how long it will take for EVs to surpass ICE vehicles, or if other transportation fuels like compressed natural gas and hydrogen will also take large shares out of the commercial and passenger vehicle markets. Therefore, the best choice for most investors is probably to compile a basket of EV stocks. That way, diversification reduces risk without compromising the chance for upside if a single company proves to be a long-term winner.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Of course, the stock market's spectacular recovery out of that trough has made decent money for many people — including first-time investors. 

But nothing probably represents that speculative fervour better than the enthusiasm for a particular US company.

Saxo Markets this week revealed that the 4th-most traded stock among Australians last month was Rivian Automotive Inc (NASDAQ: RIVN).

The electric truck maker made its debut on the NASDAQ on 12 November, Australian time, and quickly captured the imagination of investors.

The stock was listed at US$78 per share but within a week, it hit a high of US$179.47.

And it seems Australians were definitely part of the craziness.

The trouble is, Rivian has so far only made a handful of cars, mostly driven by employees and a select few outside the business. The company has not recorded any revenue yet.

Even at the current stock price of around US$90, the market capitalisation is US$76 billion. That's pretty much the same as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM), which rake in annual revenues in the hundreds of billions.

What is going on?

Why investors are going mad for Rivian

Australians are going nuts for Rivian because they want to experience the same windfall that Tesla Inc (NASDAQ: TSLA) shareholders have.

Those lucky souls have seen their money multiply 10 times over the past 2 years as the world awoke to the realisation that electric vehicles would eventually dominate.

And who wouldn't want to emulate that?

"Traders are excited to back the next reportedly big electric vehicles startup, with Rivian Automotive Inc seemingly being that meteor to grab onto," stated Saxo in its Australia's 10 Most Popular Stocks in November report.

Rivian supporters point out that e-commerce giant Amazon.com Inc (NASDAQ: AMZN) owns a reported 20% of the business and has an order for 100,000 delivery vans to be fulfilled by 2030.

Why investors should be wary of Rivian

But the trouble is, backing a zero-revenue business — let alone one that's not making a profit — carries a big risk.

The Saxo report pointed out that even if Rivian reached its estimated revenue of US$9.4 billion, the money left over after expenses would not amount to much.

"Based on Rivian reaching Tesla's operating margin of 9.6% and a 25% cash tax rate, this would equate to a net operating income of US$677 million after taxes."

For Saxo Bank head of equity strategy Peter Garnry, the possible financials just do not justify the current valuation.

"Assuming the cost of capital of 10% — primarily equity financed with a high beta and early-start risk premium — and we play with the thought that this revenue/orders were a perpetuity and it could pass on inflation of 3% in the future, then this cash flow is worth [a market cap of] US$10 billion today."

The Motley Fool US' Jason Hall, in a video recorded just before Rivian's listing, could not quite reconcile the numbers either.

"I just can't wrap my head around buying what's essentially still a start-up," he said.

"This is still a start-up, they're still basically pre-revenue. Start manufacturing 100,000 cars a quarter, and then we can have a conversation about whether I think it's an investable company."

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The slip followed the release of data that showed US inflation hit a 30-year high in October.

Over the 12 months ended October, the US's consumer price index increased 6.3%. The index measures how prices for goods and services change month-to-month.

According to reporting by the Wall Street Journal, the initial impact of the data saw the price of stocks drop and that of bonds bolster.

Which stocks dragged on the US market overnight?

Nasdaq

The biggest weights on the Nasdaq Composite include the Moderna Inc (NASDAQ: MRNA) share price, which fell 3.33%.

That of Amazon.com, Inc. (NASDAQ: AMZN) also dropped 2.63% while the newly re-branded Meta Platforms Inc (NASDAQ: FB) share price dipped 2.3%.

Interestingly, the Tesla Inc (NASDAQ: TLSA) share price slightly recovered from its earlier 16% plunge. It gained 4.34% on Wednesday.

S&P 500

Weighing on the S&P 500 were the share prices of Ford Motor Company (NYSE: F), Nike Inc (NYSE: NKE), and Twitter Inc (NYSE: TWTR).

They fell 3.7%, 3.1%, and 2.5% respectively.

ASX 200 tech shares in focus

The dip in US markets might make for an interesting day on the ASX. Particularly, since ASX 200 tech shares tend to trend in line with their Nasdaq-listed peers.

One of the obvious share prices to keep an eye on is that of Afterpay Ltd (ASX: APT). The buy now, pay later company's suitor, Square Inc (NYSE: SQ) saw its share price drop 1.55% overnight.

Both the Xero Limited (ASX: XRO) and Nuix Ltd (ASX: NXL) share prices could also be in for a big session on Thursday.

The 2 ASX 200 tech shares have already struggled this week. They've both fallen 4% since Friday's close.

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The market wrap-up

Data source: Yahoo! Finance.

Another strong year in 2021?

Which stocks are leading the way?

• A growing awareness that legacy automaker stocks should be able to participate and thrive in the trend toward electric vehicles. Shares of Ford Motor (NYSE: F) are up nearly 70% year to date, while General Motors (NYSE: GM) is crushing the market with gains of more than 40%.
• Energy stocks have continued to rebound. Marathon Oil (NYSE: MRO) has led the way with a near doubling in its stock price so far in 2021, but many other exploration and production companies are faring nearly as well.
• Hard-hit retailers are demonstrating their ability to bounce back as the economy reopens. L Brands (NYSE: LB) has seen gains of more than 90% so far in 2021, and Gap (NYSE: GPS) isn't too far behind with its 60% rise.
• Even tech giants are playing their part in driving gains. NVIDIA (NASDAQ: NVDA) has risen more than 50% on hopes that its stock split signals even better times ahead, while Applied Materials (NASDAQ: AMAT) and its almost 65% rise is symptomatic of the strength throughout much of the semiconductor space.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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That's where the US markets can come in handy. Not only is America home to some of the best companies in the world such as Apple Inc (NASDAQ: AAPL). it also offers ASX investors some exposure to trends and sectors that the ASX 200 just can't.

So here are 3 ASX exchange-traded funds (ETFs) that have the potential to easily expose any ASX investor's portfolio to the US markets.

3 ASX ETFs that can offer ASX investors easy US markets exposure

iShares S&P 500 ETF (ASX: IVV)

Here we have a simple, cheap US-based index fund. The S&P 500 Index (INDEXSP: .INX) is one of the largest and most-tracked index in the world. It holds 500 of the largest companies in the US. That's everything from Apple and Microsoft Corporation (NASDAQ: MSFT) to Ford Motor Company (NYSE: F) and Adobe Inc (NASDAQ: ADBE). This is the index that IVV tracks. This ETF has been an objectively solid performer over the past 10 years, returning an average of 17.93% per annum. it also has one of the lowest management fees of any ETF on the ASX at 0.04% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another US-based index fund here. But instead of the S&P 500, NDQ tracks the Nasdaq-100 (INDEXNASDAQ: NDX). This index is a little different, holding only the companies that list on the Nasdaq exchange. The Nasdaq is one of the major stock exchanges in the US, but it's a lot newer than its main rival the New York Stock Exchange. As such, it tends to house mostly tech companies. It's largest holdings are Apple, Microsoft, and other tech giants like Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB) and Netflix Inc (NASDAQ: NFLX).

NDQ charges a management fee of 0.48% per annum, and has retuned an average of 20.94% per annum since its inception in 2015.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is a little different from the above examples as it is not an index fund. Rather, it can be described as an 'active ETF'. That's because it invests in companies that meet certain criteria – that of a wide economic moat. VanEck works with Morningstar to identify a concentrated portfolio of at least 40 US shares that show signs of a 'wide moat'.

'Moat' is a Warren Buffett term that describes a company's intrinsic competitive advantage. This can be in a powerful brand, cost advantage or other factors that enable a company to stay on top of its competition. Some of MOAT's top holdings include Pfizer Inc. (NYSE: PFE), Boeing Co (NYSE: BA) and Buffett's own Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B). MOAT charges a management fee of 0.49% per annum. It has returned an average of 20.38% per annum since its inception in 2015.

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You have your classic index funds, such as the Vanguard Australian Shares Index ETF (ASX: VAS). There are also your ETFs that follow more specific, or thematic investments, such as the BetaShares Global Cybersecurity ETF (ASX: HACK).

The iShares S&P 500 ETF (ASX: IVV) falls into the former group. But instead of tracking ASX shares, it follows the US S&P 500 Index (INDEXSP: .INX), which follows 500 of the largest public companies over in the United States. If you can think of an American company, be that Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX) or Nike Inc (NYSE: NKE), it's probably in this index, and ETF.

We take a closer look at why this ETF could be a buy today.

Low management fee

This ETF charges a management fee of 0.04% per annum – one of the lowest on the entire ASX. That fee represents an annual cost of $4 for every $10,000 invested. Fees that ETFs and managed funds charge can take a serious chunk out of your long-term returns. As such, it's usually a good idea to try and minimise these. For example, there will be a big difference in your net wealth if you choose a fund with a management fee of 0.1% than one with 1% if both funds generate an equal gross return.

Diversification

Because this ETF invests in 500 companies, it can provide some meaningful diversification to an ASX share portfolio, especially one holding mostly ASX blue-chip shares. Not only that, many of the companies that the S&P 500 holds are truly global businesses like Apple, Netflix, Nike or Ford Motor Company (NYSE: F). As such, there is far less exposure to just the US economy than you might think. This can be a very useful way of juicing up a portfolio's diversity.

Performance

Past performance is, of course, no future indicator of future returns. However, this ETF has been a very lucrative investment to own over the past few years. In fact, investors have enjoyed an average return of 15.38% per annum over the past 5 years, and 17.93% over the past 10. Those returns dominate what any ASX index fund has returned over that period, and indeed what many actively-managed funds have returned.

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Speaking at the information technology expo Computex, AMD CEO Lisa Su revealed how it's making it all possible.

What's under the hood?

Yesterday, Lisa Su revealed that the new Tesla Model S and X will be powered by some serious AMD grunt. Tesla's infotainment system will be driven by an AMD Ryzen processor and AMD RDNA 2 graphics processing unit.

Reportedly, this will offer up to 10 teraflops of processing power. In simple terms, enough computational juice to play AAA titles.

Explaining the details during the keynote, Su said:

So, we actually have an embedded AMD Ryzen APU powering the infotainment system in both cars. As well as a discrete RDNA 2-based GPU that kicks in when running AAA games – providing up to 10 teraflops of compute power.

Given the recent cryptocurrency hysteria, some are wondering whether the graphics processor will make mining a possibility with a Tesla. At this stage, nothing has been stated to suggest it is possible.

Tesla share price on the news

The future potential of playing high-end gaming titles in a Tesla didn't seem to rally much enthusiasm overnight. The Tesla share price dipped 0.2% lower to US$623.90 and slipped further in after-hours trade.

Market participants might be happier spectating for now after Ford Motor (NYSE: F) unveiled its battery-electric pickup truck. The Ford F-150 lightning forms part of the automaker's $30 billion electric vehicles (EVs) plan for the next 4 years. However, no signs of a fully-fledged gaming system in the F-150 were shown.

While the Ford share price has made a resurgence over the last year, its market capitalisation remains unable to rival Tesla. The legacy automaker has rallied to a US$58 billion valuation. Meanwhile, Tesla's valuation is more than ten times greater, at US$628 billion.

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However, ASX lithium shares are on the move again today, with the Pilbara share price up 6.60% to $1.21, the Galaxy Resources share price up by 6.44% to $3.80 and the Orocobre share price up 5.28% to $6.58 (at time of writing).

Elsewhere, US-based Piedmont Lithium Ltd (ASX: PLL) has edged 0.87% higher to 81 cents, soon-to-be producer Core Lithium Ltd (ASX: CXO) has dipped 2.08% to 24 cents and Vulcan Energy Resources Ltd (ASX: VUL) shares are running hot again, up 4.90% to $7.50 after announcing another key project milestone.

A winding road for ASX lithium shares

The run from multi-year lows to multi-year highs for ASX lithium shares has been filled with healthy pullbacks.

Take the Galaxy share price, for example. Its shares have run from lows of around 70 cents in May 2020 to highs above $4 in May 2021. During this time, its shares have experienced 4 pullbacks greater than 20%. These pullbacks occurred during June and September last year, and January/February and May this year. Since then, Galaxy shares have been trending strongly.

Commodity prices continue to edge higher

The resurgence and hype behind ASX lithium shares hasn't just come out of thin air. Both explorers and producers have been supported by a sharp increase in lithium spot prices.

Fastmarkets provides regular lithium price updates across major regions including China, Europe and the US. Its more recent update observes higher lithium hydroxide prices in China on "tight supply and robust buying appetite" and higher prices across Europe and US.

Lithium in demand on all fronts

The tailwinds for ASX lithium shares continue to come from both countries and companies alike.

In Vulcan's project milestone announcement this morning, its managing director Dr Francis Wedin noted:

With the International Energy Agency last week declaring the need for annual battery production of 6,600 GWh by 2030, implying an annual lithium chemicals requirement of 22 times current total global production, Vulcan is leading the charge to reduce large carbon emissions currently embodied in the traditional production of lithium.

Elsewhere, ASX lithium shares could benefit from US President Joe Biden's US$2.3 trillion infrastructure project with a focus on renewable energy. According to Mining.com.au, the program includes US$174 billion to promote electric vehicles, which could see Australia and other countries becoming the US' battery metal suppliers.

On Wednesday, the Ford Motor Company (NYSE: F) share price jumped 8.55% after the company announced the acceleration of its electric vehicle efforts. The company expects approximately 40% of its sales to be electric vehicles by 2030 and plans to lift electric vehicle investment to more than US$30 billion by 2025.

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The stock market was generally strong on Wednesday, with a decided preference for more aggressive small companies over their larger counterparts. That was plainly obvious in how the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 (SNPINDEX: ^GSPC) settled for small moves, while small-cap benchmarks were up nearly 2% on the day. The Nasdaq Composite (NASDAQINDEX: ^IXIC) saw the largest benefit from the trends favoring smaller stocks.

Data source: Yahoo! Finance.

The electric vehicle (EV) industry is turning out to be a battleground between well-established automakers with long histories of innovation and newer entrants with an eye toward disrupting the auto industry. Interestingly, shares of both Ford Motor (NYSE: F) and Tesla (NASDAQ: TSLA) were higher on Wednesday. Despite the two companies being apparent rivals in the EV space, some investors are starting to think that there might be a place for both auto giants in the shift away from vehicles that burn fossil fuels. Below, we'll look more closely at both Ford and Tesla.

Ford has a plan for EVs

Shares of Ford Motor vaulted higher by nearly 9% on Wednesday. The Michigan-based giant revealed more of its strategy to take advantage of the electric vehicle shift, and investors generally liked what they saw from Ford.

The new Ford+ strategy will involve a massive financial commitment from the automaker. Ford expects to spend more than $30 billion on EV-related development and technology within the next four years, which is $8 billion more than it had previously committed to investing. The automaker has set an ambitious goal of having 40% of its global-vehicle volume consist of all-electric vehicles by 2030, driven by electrifying key brands like the F-150 Lightning and the Mustang Mach-E.

Yet Ford+ goes beyond EV. Ford will also establish its Ford Pro commercial vehicle services and distribution business, with an emphasis on corporate and government customers. Fleets will incorporate both electric and internal combustion vehicles but bundled with key services of greatest value to commercial users.

In addition, Ford anticipates providing a far greater array of connected services, including over-the-air system updates, digital tools and technology developed both in-house and from third-party providers, and advances in driver-assistance technology. Ford even called out Tesla by name in its press release, hoping to serve a wider audience than its rival within the next several years.

Tesla gets a rebound

Some investors might have feared that what's good for Ford would be bad for Tesla, but that wasn't the case. Tesla shares picked up more than 2% on Wednesday.

The move higher came even as Tesla made a move that would actually detract from its driver-assist functionality. The automaker said that it would no longer provide radar equipment as part of its Autopilot system for Model 3 and Model Y vehicles built for the North American market. Instead, these vehicles will rely solely on camera vision and neural net processing.

Tesla's approach is interesting, given the rest of the industry's increasing reliance on radar and lidar systems. Nevertheless, CEO Elon Musk has long been skeptical of the need to go beyond visual information, hoping that the Tesla Vision platform will be able to scale up quickly.

Plenty of room for everyone

Although the narrative for many in the auto industry has been one of Tesla displacing legacy automakers like Ford and eventually rendering them obsolete, the reality is more likely to reflect the various advantages and consumer preferences of each brand. There's more than enough room in this growth market for both Ford and Tesla to thrive, and it'll be interesting to watch how they and others jockey for position in this innovative, fast-growing market.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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