Huckabee's Poll of the Day Which mega trend do you think will be the big winner for investors? EVs or Oil? Let us know here. |
The End of EV Mandates?
Prosperity Insider Nation,
Will EV mandates disappear?
Executives at Ford, GM and Stellantis are begging Trump to keep Biden’s electric vehicle mandates because they’ve burned through billions of dollars investing in building EVs that hardly anyone wants to buy.
The greenies vilified Toyota for saying EV technology wasn’t ready for market and building hybrids instead, but they’re selling hybrids like crazy now. They solved the mystery that eluded all the other car makers: “Build cars that people want.”
I doubt Trump will be too sympathetic to keeping the Biden policy of using overreaching government power to force people to buy expensive EVs that they don’t want … any more than he’s likely to keep that $7,000 tax deduction for rich people to buy EVs.
And Elon Musk probably won’t advise him otherwise, considering Tesla was the only EV brand that was really successful. He probably doesn’t want government-subsidized competition.
The big automakers who were quick to go along with Biden’s EV fantasy should have fought this in court instead of accepting it in exchange for big federal handouts.
If they want to see where this is headed, they can look at Europe, where the mandates are even stricter but not more popular, and companies that bet big on the EV future are going belly-up.
If automakers are going to survive, they should stop looking to the government and start making reliable cars that people want and can afford.
For investors, Charles Mizrahi says that there’s one obvious investment everyone should be adding today. Because when Trump takes office, he’s going to “pick up where he left off” when it comes to oil and gas.
Gov. Mike Huckabee
Director, Prosperity Research
Trump's Return: A Bullish Outlook for Oil Stocks and Energy Independence
By Charles Mizrahi
Founder, Alpha Investor
President Trump’s energy policies are a complete reversal of those under the Biden administration.
From 2016 to 2020, Trump’s presidency was marked by policies supporting fossil fuel development, cutting regulations and promoting energy independence.
Under his leadership, the U.S. became the world’s largest producer of oil and natural gas, thanks in part to his administration’s industry-friendly approach.
When Trump takes office as the 47th president on January 20, 2025, he’s expected to continue where he left off — focusing on expanding fossil fuel production and rolling back environmental regulations.
Many of you have asked how these policies will impact oil stocks.
In the American Prosperity Report portfolio, we own some of the best oil and gas stocks, three of which are already showing open double-digit gains.
My outlook on oil stocks now is that Trump is going to finish what he started.
Trump’s Energy Policies Sets the Stage
President Trump’s energy policies will strongly favor oil companies.
His administration plans to boost domestic oil and natural gas production by streamlining permits and cutting regulations.
This creates a promising environment for well-managed and financially solid producers … like Occidental Petroleum (OXY), one of our American Prosperity Report holdings.
I recommended "Oxy Pete" in April 2022 and recommended it again in June 2024.
With the stock price trading below our entry, Mr. Market is giving patient investors an outstanding opportunity to add shares to their portfolios.
As Warren Buffett famously said, “No matter how great the talent or effort, some things just take time: you can’t produce a baby in one month by getting nine women pregnant.”
Alpha CEOs lead all of the energy companies we own and operate in an industry that will remain essential for decades.
While short-term fluctuations are unpredictable, crude oil prices have held steady at around $70 per barrel despite challenges like China’s economic slowdown and U.S. inflation.
Oxy Pete, in particular, is in excellent shape.
With a breakeven cost of roughly $40 per barrel, the company remains highly profitable.
Under CEO Vicki Hollub’s leadership, Oxy Pete has prioritized debt reduction using its free cash flow.
In its third-quarter 2024 earnings report, the company achieved record U.S. production, beating expectations despite weather disruptions and price volatility.
It also generated $1.5 billion in free cash flow, exceeding guidance.
Despite these accomplishments, Mr. Market continues to undervalue it.
But we don’t focus on short-term stock movements — we focus on the business itself.
From everything we’ve seen, Oxy Pete is doing all the right things. It’s only a matter of time before the stock price reflects the company’s underlying worth.
And here’s another reason to stay confident: Warren Buffett’s Berkshire Hathaway owns nearly 29% of Oxy Pete with an average purchase price around $54–$55, slightly higher than the current trading price.
If you don’t own oil stocks in your portfolio, you should consider buying Occidental Petroleum (OXY).
And hold on as Trump gives the order to “drill, baby, drill.”
For more of my oil stock recommendations and new updates, join the American Prosperity Report family here.
Regards,
Charles Mizrahi
Founder, Alpha Investor
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