“My biggest bet of the year…”: Why Nikhil Kamath thinks electric cars are the next step to making big money

Nikhil Kamath, co-founder of Zerodha, said his biggest bet this year was electric cars. He said they have invested in everything from scooters and buses to trucks, and hopefully they will invest in air taxis next.

Kamath had earlier also said that he was optimistic about the sector. In an episode of his podcast, “WTF with Nikhil Kamath,” the billionaire said that sectors such as electric vehicle companies, battery manufacturers, and solar companies are particularly profitable.

In a social media post on Wednesday, Kamath said: “My biggest bet this year was that all vehicles will be electric one day; We have invested in everything from scooters to buses to trucks and perhaps air taxis in the future…”

He said the shift to electric cars could be accelerated by recognizing climate problems. “In addition, we hope that the reduction in cost per kilometer of mobility will be beneficial for the initial arbitrage in capital expenditures,” he said.

Along with his social media post, he also posted screenshots of FinFloww and Gruhas research which stated that renewable energy accounts for 46.3 per cent of India’s total installed capacity as of October 2024. This growth is in line with India’s ambitions, the research added. The goal is to produce 500 gigawatts, or 50 percent of energy, from renewable energy sources by 2030.

The research also supported the importance of battery energy storage systems (BESS) that can store excess energy when demand is low and release it during peak hours. The research added that the BESS system can lower the energy bill by reducing peak demand charges, providing support during power outages, reducing fossil fuel use and emissions, and achieving grid stability by balancing demand and supply.

In an earlier episode of his podcast, featuring Badshah, Kriti Sanon and KL Rahul, Kamath said the energy transition sector is a key area of ​​opportunity. “The energy transition is a big deal in the world, and most of the wars in our history have been fought over it,” Kamath said.

Kamath said the energy sector may not be very glamorous but it offers great profitability, especially in light of government incentives. He advised businessmen to avoid crowded industries.