Should Investors Be Buying These Top EV Stocks Right Now?
If you have been keeping up with the news, you would likely realize that there has been a growing trend towards the use of cleaner energy sources. In the automotive industry, this would be evident through the growing number of automakers electrifying their fleets. In fact, legacy automakers such as Ford (NYSE: F) and General Motors (NYSE: GM) are arguably among the few companies leading the race. As a result, electric vehicle (EV) stocks could be worth noting in the stock market today.
Last Friday, EV poster child Tesla (NASDAQ: TSLA) revealed its plans for a three-for-one stock split. In its filing with the SEC, Tesla wrote, “Our success depends on attracting and retaining excellent talent,” and that “highly competitive compensation packages” offering every employee an option to receive equity helped Tesla to do that. Ultimately, this move will allow smaller investors to afford a slice of the Tesla pie while incentivizing its employees. Given this news, here are five EV stocks to watch in the stock market right now.
Electric Vehicle Stocks To Watch Today
- Blink Charging Company (NASDAQ: BLNK)
- Nio Inc. (NYSE: NIO)
- BYD (OTCMKTS: BYDDF)
- Li Auto Inc. (NASDAQ: LI)
- ChargePoint Holdings Inc. (NYSE: CHPT)
Blink Charging Company
Blink Charging is a provider of EV charging equipment and services. Its principal line of products and services includes its Blink Network and EV supply equipment. For a sense of scale, the company currently operates over 30,000 charging ports across 13 countries. In addition, its charging stations are linked via its global network, allowing users to conveniently charge at any of its locations worldwide. Therefore, it would not be surprising if Blink continues to play an impactful role in the growth of the industry.
Yesterday, the company announced that it has entered into an agreement to acquire SemaConnect for $200 million. For those unfamiliar, SemaConnect is a leading provider of EV charging infrastructure solutions in North America. This transaction will add nearly 13,000 EV chargers, 3,800 site host locations, and more than 150,000 registered EV driver members to its network. Through this strategic acquisition, Blink will be the only EV charging company to offer complete vertical integration from R&D and manufacturing to EV charger ownership and operations. Given this news, would you invest in BLNK stock?
Another top EV stock to watch right now is Nio. If you have been following the stock market news lately, chances are you would be aware of the strength among Chinese stocks. This could partly be thanks to the recent easing of lockdowns in China. What’s more, Nio is hosting a product launch event this morning. Notably, a major highlight of the event is the launch of Nio’s all-electric ES7 SUV.
For those unaware, the ES7, according to official Chinese government filings, is a medium-large five-seat SUV. Also in the documents, it will come in five versions boasting varying full-charge ranges. This would include ranges of between 440km and 620km with the option for additional battery packs boasting a capacity of up to 100kWh. Also worth mentioning, the ES7 will also feature a swappable battery. With all this in mind, would you be buying NIO stock today?
Following that, we have the Chinese transportation company, BYD. Its primary business involves the manufacture and sales of transportation equipment, including electric vehicles and buses. Besides that, BYD also engages in the manufacture and sale of electronic parts and components and electronic devices for daily use. BYDDF stock has been going strong over the past month, increasing more than 30%.
Earlier this month, the Warren Buffett-backed company reported another monthly sales record in May. According to the report, in May, its plug-in car sales amounted to 114,183. This represents a 260% growth from last year and a new all-time record. Thanks to these sales, BYD has climbed onto the ranks of the top three brands in China by passenger car sales. And since the start of this year, the company has already sold over 500,000 plug-in electric cars. For reference, the company sold 593,745 plug-in cars for the whole of 2021. Looking at BYD’s sales, does BYDDF stock have a spot on your watchlist?
Li Auto is an innovator in China’s new energy vehicle market. It designs, develops, manufactures, and sells premium smart EVs. The company is also a pioneer in successfully commercializing extended-range EVs in China. Also, its first EV model is the Li ONE, a six-seat, large premium electric SUV. It is equipped with a range extension system and also has advanced smart vehicle solutions. Over the past month, LI stock has been on a bullish run, rising over 45% in price.
The company started the month by announcing its May 2022 delivery updates. Impressively, the company delivered 11,496 Li ONEs in May 2022, up 165.9% year-over-year. As it stands, the cumulative deliveries have reached 171,467 since its market debut in 2019. Investors should note that Li Auto was able to deliver such a feat despite having supply chain issues and lowered production levels due to coronavirus in China. Therefore, these figures may continue to improve as China’s coronavirus situation gets under control. With that in mind, do you think LI stock will continue its current momentum?
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ChargePoint is a company that develops and markets networked EV charging system infrastructure while providing cloud-based services. As part of its networked charging systems, it provides an open platform that integrates with system hardware from various EV companies and manufacturers. Hence, it can provide real-time information about charging sessions. On May 31, the company reported its financial results for the first quarter of fiscal year 2023.
Jumping right in, the company brought in a quarterly revenue increase of 102% year-over-year. Specifically, this marks an increase from $40.5 million in the prior year to $81.6 million. ChargePoint’s networked charging systems revenue came in at $59.6 million, a rise of 122% from a year ago. In the same report, the company also shared its guidance for the second quarter. Namely, it expects to bring in revenues of $96 million to $106 million. Meeting the midpoint of this guidance would represent an increase of 80% year-over-year. Considering the strong quarter at ChargePoint, should you add CHPT stock to your portfolio?