Do You Have These Electric Vehicle Stocks On Your Watchlist?
As we head into the second-quarter earnings session this week, many investors continue to be wary of the volatility in the stock market. All eyes will be on downside risk to earnings forecasts as companies adapt to rising interest rates and pressure from inflation. Therefore, market participants could be more selective with their investment options. As such, a high-growth sector benefiting from secular trends such as electric vehicle (EV) stocks could be in focus. Despite fear of a recession weighing on sentiments, the EV sector continues to grow with new developments.
For instance, Walmart (NYSE: WMT) said today that it has signed a definitive agreement with EV company Canoo (NASDAQ: GOEV) to purchase 4,500 all-electric Lifestyle Delivery Vehicles (LDV). Notably, the LDV is engineered for high-frequency stop-and-go deliveries, and its interior is designed for small package delivery. Walmart has the option to purchase up to 10,000 units of the vehicle. The LDV should be hitting the road in 2023, and help contribute to Walmart’s goal to achieve zero emissions by 2040.
Elsewhere, emerging EV manufacturer, Mullen Automotive (NASDAQ: MULN) recently announced that it has signed a binding agreement with DelPack Logistics, an Amazon (NASDAQ: AMZN) Delivery Service Partner. The agreement states that Delpack will purchase up to 600 Mullen Class 2 EV cargo vans over the next 18 months. Given all these exciting developments, here are four of the top EV stocks worth noting in the stock market today.
Electric Vehicle Stocks To Watch Today
To kick start the list, let us look at one of the largest automobile companies in the world, Ford. Essentially, the company designs, manufactures and markets a full line of electrified passenger and commercial vehicles today. This includes Ford trucks, utility vehicles, vans, cars, and Lincoln luxury vehicles. Besides that, Ford also has its hands in the autonomous vehicle sector through equity ownership in Argo AI. That said, it is noteworthy that F stock has been struggling to build momentum this year. Hence, at its current valuation, it would not be surprising if investors are starting to pay attention to the stock.
Last week, Ford announced its June 2022 sales numbers. While industry-wide sales were down by 11%, Ford sales improved 31.5% compared to the prior year’s quarter. The company’s F-Series sales were up 26.3% year-over-year. Its F-Series trucks have been expanding its leadership position, outselling its second-place competitor by about 40,000 trucks in the first half of the year. In addition, the sales of Ford EVs jumped to 4,353 in June, representing an increase of 76.6% year-over-year.
Andrew Frick, vice president, Sales, Distribution & Trucks, Ford Blue, commented, “Amid industry-wide supply constraints, Ford outperformed the industry driven by strong F-Series, Explorer and new Expedition and Navigator SUV sales. Combined, these vehicles represented just over 56 percent of our sales in June – up about 8 percentage points from May. F-150 Lightning was America’s best-selling electric truck in June in its first full month of sales, while our overall electric vehicle sales were up 77 percent over last year.” Thus, would you bet on F stock to turn around soon?
Shifting to the east, EV trends are as dominant as in the west, if not more. Well, Li Auto is one of the major players contributing to this shift. Put simply, the Chinese company designs, manufactures, and sells premium smart EVs. With a strong emphasis on innovations in product, technology, and business model, Li Auto provides families with safe, and comfortable products and services. As it stands, its model lineup includes the Li ONE, a six-seater premium smart EV SUV, and the Li L9, a six-seater flagship smart SUV. LI stock has risen by more than 25% over the past month.
Earlier this month, the company provided its June 2022 delivery update. In June, Li Auto delivered 13,024 Li ONEs, an increase of 68.9% year-over-year. In the second quarter, Li Auto made 28,687 deliveries, representing a 63.2% increase year-over-year. Meanwhile, the company as of June 30, 2022, has a total of 247 retail outlets in 113 cities, as well as 308 service centers and Li Auto-authorized body and paint shops in 226 cities.
In late June, the company introduced the Li L9, which saw strong demand from customers. The model received more than 30,000 reservations in the first 72 hours since the vehicle was available for reservation. That is a testament to the appeal of the vehicle for family users. Building on these positive sentiments, would you consider LI stock as a top EV stock to watch?
Last but not least, we have Rivian. In brief, the company is a manufacturer of EVs and related accessories. As presently constructed, the company offers a pick-up truck and an SUV, namely the R1T and R1S respectively. The R1 technology systems include vehicle electronics, battery, electric drive, chassis, Driver+, its advanced driver assistance system (ADAS), and digital user experience management. Also, the company has a portfolio of vehicle accessories such as all-weather floor mats, camp kitchens, and many more. Although RIVN stock has been under pressure for most of the year, things may be turning around. In particular, the stock has risen by over 10% just this month alone.
Last month, Rivian announced the opening of three fast-charging sites in Colorado and California. This marks the first deployment in its nationwide Rivian Adventure Network. These sites will initially provide over 200 kilowatts of power, allowing Rivian drivers to add as much as 140 miles of range in just 20 minutes of charging. Therefore, this opens up new opportunities for sustainable long-distance driving far from home.
Aside from that, investors should also note that Rivian produced 4,401 vehicles and delivered 4,467 vehicles during the same period for the quarter ending June 30, 2022. These figures are in line with the company’s expectations and put it in a good position to reach its annual production guidance of 25,000 vehicles. Overall, there appear to be reasons for optimism with the company. With that in mind, would you consider adding RIVN stock to your watchlist?