Apr 25, 2022 18:01
Investors have been flocking to electric vehicle stocks as the globe strives to go green, as EVs address one of the main contributors to carbon emissions, resulting in increased trade volume and, in many instances, dramatic price growth. Furthermore, many feel that the sector's massive gains are merely the tip of the iceberg.
Returns on investments in this or any other industry will vary dramatically from one stock to another. While the electric vehicle business is still young, there are a lot of firms jumping into the ring, making it more challenging to narrow down a list of potential prospects in the field than it is in established industries with prominent market leaders.
Based in Palo Alto, California, Tesla has become associated with the electric vehicle sector. Elon Musk, the company's billionaire founder, continues to be a pioneer in the area of electric vehicles.
It's little wonder, therefore, that investors have flocked to the stock, sending share values rising over the past year, despite the COVID-19 outbreak. Tesla's stock price rose from roughly $171 per share in February 2020 to over $900 per share in early 2021 before falling to around $620 per share in June 2021.
Although it's too late to profit from those gains, many analysts predict this high-growth company will continue to rise in the future.
Following the company's first-quarter financial release, Musk emphasized increasing car deliveries, stating that the statistic will climb by 50% year over year until 2021.
At the same time, the firm has several catalysts in the pipeline:
Vehicles that are brand new. According to several experts, while its cars are in great demand, they only cover roughly 15% of the addressable market. Consequently, analysts anticipate the corporation releasing new models that will enable it to reach a wider audience.
Cybertruck. For quite some time, investors have been anticipating the release of the Tesla Cybertruck, an electric truck with a sleek new design. The Cybertruck is likely to be in great demand due to its status as one of the first electric trucks to join the market. The truck's production is slated to begin later this year, with deliveries in late 2022.
Van that runs on electricity. With Tesla's electric cars and trucks on the production line, just one vehicle remains electric vans. Although there is no date for when Tesla would sell them, Musk said on the conference call after the business's fourth-quarter results announcement that the company was working on an electric van product. Since January 2021, there hasn't been any discussion concerning the electric van. As a result, an update is anticipated to arrive shortly, perhaps driving the stock higher.
Plaid Deliveries are a kind of delivery service. The Plaid vehicle can go from 0 to 60 mph in under two seconds, making it one of the quickest vehicles on the road. While many consider this a niche car with a price tag of $130,000, confident analysts, such as Goldman Sachs' Mark Delaney, believe that deliveries will exceed estimates, causing the stock to skyrocket.
While the stock may have been overvalued early in the year, there's a compelling case to be made that it's currently cheap, given the company's outstanding sales and profits growth, as well as upcoming catalysts, and the fact that share prices have fallen more than 30% from their January highs.
Overall, betting against the pioneers of any business is seldom a sensible decision, and betting against Tesla stock is unlikely to be one of them.
Two of the top stock pickers are David and Tom Gardener. Their Stock Advisor selections have gained 563 percent, while the S&P 500 has only increased by 131.1 percent. If you had invested in Netflix when they initially advised it, your money would have grown by more than 21,000 percent.
As one of Tesla's main rivals, Nio has become a hot issue in the stock market. The firm is a Chinese electric automobile startup with several products on the market that are gaining traction.
Nio is, in the end, a double emerging market bet. The firm is not just involved in the developing electric car sector. Still, it is also based in China, an emerging country rapidly becoming established, which is a formula for explosive development.
Nio was initially a source of worry for investors. As recently as 2019, many felt the firm was on the verge of collapse. Last year, however, that all changed as sales rebounded dramatically, and the trend is predicted to continue through 2021.
Sales had surged by more than 350 percent by January 2021, boosting the stock's worth. At the same time, the Nio ET7, a sleek, totally electric vehicle, was unveiled, further enthralling investors. In May, the business sold 6,711 new automobiles, a 95 percent increase over the previous month.
Investors are eyeing the ET7 as a possible blockbuster. At the same time, EV demand in China continues to rise as quarantined people during the COVID-19 outbreak begin to go out.
Nio also anticipates a significant increase in demand for its electric vehicles, as seen by its manufacturing capacity. According to Nasdaq, the business has recently spent considerable money on infrastructure to grow its manufacturing capacity, which is estimated to be over 150,000 cars by 2021.
Although the firm is not yet profitable, it is rapidly approaching that goal. The firm reported a $0.14 per share loss in the most recent quarter. While the result fell short of expert expectations, it represented a significant improvement from the $0.39 loss per share posted in the fourth quarter of 2020. Many feel that profits are on the horizon due to growing demand and manufacturing capacity.
The stock is becoming more and more of an opportunity as demand grows, Nio continues to develop, and a worldwide emphasis on renewable energy becomes more vigorous. When you add that the firm is rapidly reaching profitability in a dual-developing market, it's challenging to overlook the stock.
You may be shocked to find that one of the best electric vehicle stocks for 2021 is a 112-year-old traditional automaker. But why would a prominent car manufacturer and auto industry leader opt out of the EV market?
They wouldn't do that!
GM is working on its own electric vehicles, but it has also made one of the largest pledges in the auto industry's history, according to investors.
General Motors is striving toward an all-electric future, with plans to phase out fossil-fuel cars in favor of all-electric versions. To begin, the business expects to spend $7 billion this year and produce 30 electric vehicles. By 2025, the firm will have spent $27 billion on electric cars.
The firm has earned a position on the top EV stocks for 2021 due to its ambitious aspirations to become a leader in the electric car sector.
GM's stock fell due to the coronavirus pandemic, but it swiftly rebounded, rising from $16.80 per share lows to $63.92 highs in June 2021 before resting at $60 in mid-June. The stock price has increased at an incredible rate, and there's a good chance that this trend will continue.
In reality, by the autumn, the business will have three new vehicles on the market, including the world's first electric Hummer, the Hummer EV. The Chevy Bolt EUV, a somewhat bigger variant of the Chevy Bolt, will be released in 2022.
The third vehicle has the potential to be the most thrilling. FedEx has signed a contract with GM to provide BrightDrop EV600 delivery trucks. These vans have a capacity of 600 cubic feet for shipments, are 100% electric, and have a range of 250 miles. Not to mention that the BrightDrop EV600 can absorb 170 miles of range electricity each charging hour thanks to its rapid charger.
GM has shown to be a powerful player in the car business over the years, and as it continues to develop in the burgeoning EV sector, it will likely maintain its position. Overall, the stock is one that you should pay attention to.
Ford is another automotive pioneer, having retained a dominant position in the industry for more than a century. The firm has weathered the ups and downs of the car industry and continues to be a pioneer in innovation. It's not a business that will pass up an opportunity.
Consequently, the firm is vying to be the first to market electric automobiles.
Ford now sells two electric vehicles: the Focus EV and the Fusion EV.
Mustang Mach E is a supercharged version of the Mustang. Ford, the king of the muscle vehicle, would be doing its fans no favors if it abandoned the Mustang in favor of an electric counterpart. It's no surprise, therefore, that the Mustang Mach E is the company's first all-electric car. The Mustang Mach E demonstrates the power of electric automobiles by reaching peak acceleration in under one second and requiring no planned maintenance, lowering the cost of ownership.
E-Transit in 2022. Ford is also considering producing commercial vehicles to compete with GM, its long-time competitor. The E-Transit of 2022 seems to be an attempt to achieve precisely that. The commercial vehicle has plenty of room for carrying items or other business purposes. Unfortunately, compared to the BrightDrop EV600, the range is lacking, with just 126 miles of range on a full charge.
These are only the first of several 100 percent electric vehicles that this auto industry pioneer is expected to release shortly.
Furthermore, the business just announced a collaboration with Google. The two businesses will use visual AI to upgrade Ford manufacturing facilities, create new purchase experiences, and develop new offers based on connected car data.
Because the future car business will combine technology and conventional mechanics, having a partner like Google on board is a massive plus for any company.
Like GM, an investment in Ford is an investment in a long-standing corporation that has not only survived but prospered through the ups and downs of its sector and the economy. This traditional winner is getting even more appealing now that Google is on its side, making it one to watch.
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Apple is unlikely to spring to mind when you think of the car business. What does Apple have to do with electric vehicles? The firm grew to be a juggernaut owing to products like the iPhone and iPad; what does it have to do with electric cars?
Apple is aiming to release its own self-driving electric vehicle. The project has lately faced a few stumbling hurdles. The business is still on the lookout for a manufacturing partner to assist in the development of its autonomous electric cars. It also revealed that the original project manager for its electric vehicle portfolio had departed to work for a new firm.
Nonetheless, major manufacturers like Nissan and Hyundai have approached the table to discuss being the production partners for this ground-breaking car.
If Apple's history is any indicator, it will soon overcome these challenges and hire some of the world's most creative brains to create one of the greatest electric vehicles on the market.
Sure, it's a long way off, but it's coming, which means buying the stock provides you exposure to the electric vehicle industry.
Because investing in a developing sector like electric cars is always risky, it's good to look for companies that provide you access to the market while also giving stability via a tried-and-true business plan.
That is precisely what Apple does.
The firm has a track record of expanding sales and profitability, making it one of the best-performing growth companies on the market right now. Furthermore, it has shown over the previous year that it can work effectively even in the event of a pandemic.
Apple went above and has remained on top of the competition in the smartphone and tablet sectors as a leader in innovation and will likely capture a big portion of the EV market in the future, making the stock one for the books.
While most EV firms are focused on designing and producing the next large car, truck, SUV, or van, just a few are focused on the technology required to charge these vehicles.
One of the fascinating aspects of Blink Charging is how little competition it faces.
Electric cars need electricity to operate. There is no fuel or combustion in these automobiles; batteries power them. The batteries that give electricity to electric cars run out of energy and need to be recharged every few hundred miles or so.
It may not seem to be an excellent company at first sight, and EVs come with chargers that can be plugged in and recharged at home. So, why is a charging corporation required?
Wouldn't it be lovely to drive into a parking spot and plug your vehicle in, knowing that your car is charging while you go shopping or watch a movie? What happens when you take a vacation? Wouldn't it be nice to charge your automobile while on the road?
Blink Charging is a solution to this problem.
The firm has a network of charging stations, some of which it operates directly and others that it puts up and hands over to a business owner in exchange for a cut of the income. Customers pay to plug their automobiles into one of the chargers, similar to how petrol stations function.
Blink Charging, like Exxon Mobil in the future, may become the preferred charging option for electric vehicles as it continues to expand its charging station network.
The company's income has surged by more than 80% in the past year as its network of charging stations expands. Even though the firm is currently losing money, the great bulk of its investment is creating infrastructure that will result in future income, similar to what we saw with Amazon.com in the early days of e-commerce.
If every other firm on this list succeeds, electric vehicles will be everywhere, and just a few companies are focused on charging stations. Blink Charging is worth your attention since it has limited competition, a rapidly developing network, and profitability is likely just around the horizon.
Nikola is another green car company with a twist. The corporation isn't interested in building the next sporty electric car or a vehicle that the whole family can enjoy. Instead, the corporation is concentrating on the practicality of developing hydrogen-fueled vehicles, particularly trucks. When used, hydrogen fuel is a pure source of energy that only produces one byproduct: water.
Sure, we're not talking about electric vehicles here, but the conversation wouldn't be complete without mentioning Nikola's other sustainable transportation options.
Only the Badger is a consumer vehicle among the company's three trucks presently on the market. Because the company's trucks operate on hydrogen fuel. The wide-body pickup truck was built to deliver all of the characteristics people seek in pickup trucks without the excessive emissions associated with these gas-guzzling cars.
Even though the consumer pickup truck is an exciting product, it takes second place to the company's other two offerings, the Two and Tre. Both of these vehicles operate on hydrogen fuel isn't a fascinating element.
The Two and the Tre are both semi trucks. That's correct; instead of diesel, the giant 18-wheelers that have become such an essential component of the American and worldwide economies are powered by hydrogen.
The Tre has a range of 250 to 300 miles on a single charge, while the Two has a range of 500 to 750 miles. Furthermore, filling these cars empty takes just approximately 20 minutes.
As a young firm, Nikola isn't nearly profitable yet, but it's swiftly building up production. Given the current government in Washington, D.C., the company is expected to profit from rising demand as businesses that rely heavily on trucks attempt to become green in order to reap tax and other advantages.
Overall, Nikola works in a niche with limited competition while also addressing a big issue. Consequently, the stock's potential for rapid development is quite appealing.
Another sustainable transportation provider with a twist is Workhorse Group.
As the name implies, the company's electric vehicles are built to be workhorses. The company's claim to fame is its electric delivery van line, which is gaining traction. UPS, DHL, and FedEx are just a few of its clients, and it's also collaborated with major worldwide corporations like Duke Energy, Hitachi, and Ryder.
Workhorse Group, a vehicle manufacturer that serves the shipping sector, is set to gain tremendously from the present administration in Washington. The Biden administration and the Democratic-controlled Congress are likely to fight for legislation that would encourage more companies to adopt electric cars, hence increasing demand for the company's automobiles.
The company's two C Series trucks, one with 650 cubic feet of cargo capacity and the other with 1,000 cubic feet, are its most popular models. Both vehicles have a 100-mile range, making them ideal for last-mile deliveries, which account for a significant portion of the package and delivery industry.
While there was a case for overvaluation earlier this year, the stock's subsequent falls have made it more appealing as a value bet. Not to mention the company's enormous growth potential due to its concentration on last-mile delivery trucks, which lowers competition and may give it market domination.
Workhorse Group is an intriguing product despite being one of the higher-risk companies on our list. This very tiny firm might become a big role in the car industry if it becomes a leader in the supply of last-mile delivery EVs.
Another electric car company causing a stir in China is XPeng. The G3, a super-long-range SUV capable of going 323 miles on a single charge, is the company's most stunning product.
The P7 super-long-range car is also available, with a range of 438 miles on a single charge with an advanced infotainment system and user experience.
Both cars have hands-free parking and artificial intelligence-assisted driving, enhancing the safety and convenience of electric automobiles.
The income of XPeng is increasing rapidly. The firm reported a 616 percent increase in sales year over year in the fiscal first quarter of 2021.
The firm is currently implementing AI into its vehicles, but it intends to become autonomous in the future. Luvox, a renowned Chinese lidar startup, has announced a cooperation with it. (Light detection and range, or Lidar, is a technology that uses lasers to perceive the surroundings and enabling autonomous driving.)
XPeng plans to include lidar sensor technology into its vehicles as early as this year, implying that a completely driverless EV might be on the way shortly.
In addition, the firm is rapidly expanding from a national to an international level. In reality, XPeng G3 smart vehicles were just delivered to Norway for the first time. Later this year, the business plans to launch its P7 model in Europe, substantially broadening its target market and potential growth.
Domestically in China, the electric vehicle industry is exploding, and XPeng intelligent EVs provide customers with the environmental efficiency they need and smart technology that improves the driving experience. Furthermore, with plans to add lidar systems into production this year, the business is on pace to become the first carmaker to mass-manufacture an EV with lidar, consolidating its position as the industry leader in smart technology integration into EVs.
XPeng is a company worth keeping an eye on, with excellent revenue growth and plans to expand into foreign markets to achieve even more growth.
The electric car business is fascinating and attracts a lot of interest from investors. With the world's understanding of energy rapidly shifting, demand for these green cars is anticipated to rise.
EVs are also a fascinating issue since they are the outcome of a novel convergence of classical mechanics and cutting-edge technology.
Even though there is no such thing as a risk-free investment, there is no such thing as a risk-free investment; research is required prior to purchasing any stock. Everything seems to be fitting into place for the business at the moment, paving the way for a continuation of the explosive growth observed among industry leaders over the previous year.
As a result, there are several opportunities in the market.
Keep the dangers in mind and conduct your homework before investing in the space. You may achieve benchmark-beating profitability by making well-researched, well-thought-out investing selections.