CNBC Pro

EV stocks are 'overpriced' — but there's a good way to play them, says strategist

This photo shows an electric car being charged on a street in London.
Miles Willis | Getty Images News | Getty Images

There's been a rush for electric vehicles and investors are piling money into green cars and the batteries that power them — but one top investment strategist says he's avoiding the sector for now.

As more and more people jump on the electric bandwagon, experts predict that global penetration of electric cars could top 80% by 2040. Demand for EV batteries is also expected to rise.

David Roche, who correctly predicted the 1997 Asian financial crisis and the 2008 global financial crisis, explains why he's not investing directly into electric vehicle makers and battery producers at the moment.

More In Pro Talks

VIDEO01:02:18
CNBC ProCNBC PRO Talks: Buffett disciple and veteran investor Mohnish Pabrai shares his latest market strategy
watch now
VIDEO48:20
CNBC ProCNBC Pro Talks: Evercore ISI analyst Mark Mahaney's favorite tech stocks for traders and investors
watch now
VIDEO51:41
CNBC ProCNBC Pro Talks: Where one fund manager is putting his money during the market madness