Why Electric Vehicles Use Tires More Quickly and Why Michelin Stock (ML) is a Good Investment

Why Electric Vehicles Use Tires More Quickly and Why Michelin Stock (ML) is a Good Investment, Long Tall Investing

Introduction

Electric vehicles (EVs) are becoming increasingly popular, and for good reason. They’re more environmentally friendly than gas-powered cars, and they can save owners money on fuel costs. However, there’s one downside to EVs that many people don’t know about: they go through tires more quickly.

Why EVs use tires more quickly

There are a few reasons for this. First, EVs are typically heavier than gas-powered cars, thanks to their large batteries. This extra weight puts more stress on the tires. Second, EVs have instant torque, which means they can accelerate very quickly. This can also lead to increased tire wear.

According to a study by Bridgestone, EVs wear down tires about 30% faster than gas-powered cars. This means that EV owners may need to replace their tires more often, which can add to the cost of owning an EV.

How Michelin (ML) is positioned to benefit from the growing EV market

Michelin (ML) is a leading manufacturer of tires for all types of vehicles, and it is well-positioned to take advantage of the growing EV market. Michelin has already developed a number of EV-specific tires, and it is continuing to invest in new research and development.

One of Michelin’s most popular EV-specific tires is the Pilot Sport EV. The Pilot Sport EV is designed to provide excellent performance and handling in all weather conditions, and it has a longer tread life than traditional tires.

Michelin is also developing new EV-specific tires for commercial vehicles. In 2022, Michelin introduced the Michelin X InCity EV tire, which is designed for electric buses and delivery trucks. The Michelin X InCity EV tire is designed to provide high mileage and low rolling resistance, which can help to reduce fuel costs and emissions.

Why Michelin stock (ML) is a good investment for investors

Michelin stock (ML) has performed well in recent years, outperforming the broader market. In 2022, Michelin stock rose by over 20%, while the S&P 500 index rose by just over 10%.

Michelin’s strong stock performance is due to a number of factors, including its strong brand recognition, its global presence, and its focus on innovation. Michelin is well-positioned to benefit from the growing EV market, and its stock could continue to outperform the broader market in the coming years.

Target price for Michelin stock (ML)

According to TipRanks, the average buy recommendation target price for Michelin stock (ML) is US$37.28. This represents a potential upside of over 23% from the current price of US$28.22.

Conclusion

Michelin stock (ML) is a good investment for investors who are looking to capitalize on the growing EV market. The company has a strong brand recognition, a global presence, and a focus on innovation. Michelin is well-positioned to maintain its leadership position in the EV tire market, and its stock could continue to outperform the broader market in the coming years.