Say that I believe that the market for electric cars will explode in coming years. What are the benefits/detriments of the following investments at various levels of the supply chain?
Raw materials, e.g. raw material hoarding Cobalt 27
Mid-chain, e.g. electric vehicle battery producer Valence Technology
End product, e.g. investor-baffling Tesla
I imagine that perhaps picking the most successful end-product provider could prove the most profitable and perhaps the raw material sourcers may be more reliable - though less prone to insane returns - due to many others in the supply chain depending on them, but is it so simply a risk/reward tradeoff? Or is this completely wrong?