Do You Have These Top Electric Vehicle Stocks On Your December Watchlist?
Electric vehicle (EV) stocks have jolted many investors’ portfolios to new heights this year. This is unsurprising as the industry is one of the best performers in the stock market in 2020. The International Energy Agency states that electric vehicle sales accounted for 2.6% of global car sales in 2019. By 2030, this figure could hit 30%. With such a huge slice of the market up for grabs in the next decade, this could very well be a good time to have top EV stocks in your portfolios. By looking at Tesla (TSLA Stock Report) and Workhorse Group (WKHS Stock Report), you can see that these EV stocks have already exploded in growth.
The industry is certainly well-positioned for growth. With Joe Biden set to be inaugurated in January as the 45th President of the United States, some of the best EV stocks to watch have rallied hard in the last month. Joe Biden ran on a progressive platform to make the U.S. carbon neutral by 2050. Will there be an EV in every driveway under the Biden Administration? That prospect does not seem too far fetched.
Two of the president-elect’s EV policies will play a vital role in the industry. First, Biden will use the full authority of his executive branch to make progress and significantly reduce emissions. He will utilize the Federal government’s procurement system to drive towards 100% clean energy and zero-emission vehicles. Second, Biden’s Year One Legislative Agenda will deploy over 500,000 new public charging outlets by the end of 2030. The agenda will also restore the government’s EV tax credit to target middle-class consumers to increase widespread adoption. With so many exciting developments to come for the EV industry, here are 3 EV stocks to watch in the stock market today.
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Best EV Stocks To Buy [Or Sell] In December: General Motors Company
General Motors (GM Stock Report) is the largest American automobile manufacturer and fourth-largest in the world. The company has always built iconic cars and its four automobile brands are Chevrolet, Buick, GMC, and Cadillac. The company’s shares are up by over 140% since the March lows. The company’s shares have benefited from bullish sentiment in the EV industry so far.
GM has just announced its third-quarter fiscal last month and it certainly paints a clear future for the company’s electric vehicle segment. The company reported a staggering net revenue of $35.5 billion. This along with a net income increase of 74% at $4.0 billion compared to a year earlier is an impressive feat to achieve. GM’s third-quarter results prove that the company can effectively weather through a global economy under stress. Notably, the company’s sales in China grew by 12% year-over-year and has no doubt contributed to this net income increase.
The company is making significant investments in product development and manufacturing to accelerate progress towards an all-electric future. More than half of GM’s capital spending and development team will be devoted to EV and autonomous vehicles (AV). GM will also hire 3,000 engineers to accelerate its transition into the EV industry. The company also ambitiously announced that it will launch over 30 EV models by 2025. With so much development in the pipeline, will you have GM stock as a top EV stock to watch?
Best EV Stocks To Buy [Or Sell] In December: NIO Inc.
NIO (NIO Stock Report) is arguably one of the most successful EV stocks in terms of growth today. The company’s share price is up by over 1,000% year-to-date. You could say that investors bet on disruption this year as the automotive industry goes electric. The company suffered some setbacks earlier this month after the U.S. House of Representatives voted to pass the Holding Foreign Companies Accountable Act (HFCAA). The law would require additional disclosure from Chinese companies to ensure they comply with U.S. regulations. Investors should not worry however as the HFCAA does not change the fact that there is a massive shift towards electric vehicles.
In the company’s third-quarter fiscal posted in November, NIO posted total revenue of $666.6 million, which is an increase of 146.4% from a year earlier. The company also reported a record-high quarterly delivery of 12,206 vehicles. NIO also provides monthly updates for its deliveries to keep investors well informed. In November, the company reported that it delivered 5,291 vehicles, representing a 109.3% increase. NIO seems to be firing on all cylinders so far. The question is can NIO carry this momentum into the new year?
Being a pioneer in China’s premium smart electric vehicle market certainly has its perks as not many EV companies can boast a 1,000% growth in share price in just a year. The company is in the process of accelerating its production capacity expansion this month. This is to accommodate the increasing demand for the company’s EVs. With all things considered, will you have NIO stock on your watchlist?
Best EV Stocks To Buy [Or Sell] In December: Li Auto Inc.
Li Auto (LI Stock Report) is another China-based manufacturer of EVs and has seen impressive gains since its IPO in July. The company’s shares have been up by over 150% since July. Li Auto is an innovator in China’s new energy vehicle market. It develops, manufactures, and sells premium smart electric SUVs. The company’s first model, Li ONE, has received strong consumer demand.
The company had just announced its third-quarter fiscal last month, beating investors’ expectations. In this quarter, Li Auto reported total revenue of $369.8 million, a 28.9% increase from the last quarter. The company also posted a record delivery of 8,660 Li ONEs in this quarter, which is a 31.3% increase quarter-over-quarter. Li Auto also does not seem to be slowing down as the company is increasing investments into its R&D department.
The automaker has just recently announced a follow-on public offering of 47 million shares. The shares are priced at $29 per share and the offering’s underwriters will have a 30-day option to buy an additional 7.05 million shares. The company will raise about $1.5 billion if all shares are purchased. This new capital will go straight into the R&D for its next-generation EV platform. This includes new batteries and high-speed charging systems. The company is also looking into self-driving technologies and will expand further. Will these reasons be enough for you to buy LI stock?