Top EV Stocks In Focus On ‘Battery Day’
EV stocks have made unprecedented gains in 2020. There is a good reason for these gains after all as the world shifts towards renewable energy. Electric vehicles being the poster child of renewable energy would inevitably replace gas-guzzling vehicles. Furthermore, the cost of EV batteries has been falling steadily over the last decade. This in effect makes them a feasible mode of energy for transportation in the years to come.
Electric vehicles are an important part of meeting global goals on climate change. Investors today are looking for top EV stocks to buy in expectation of future profitability as the world’s automaker transitions towards renewable energy. While some may dismiss it as hype, electric vehicles are indeed a growing market.
After all, the shift toward clean energy vehicles is part of the evolution of the automotive market. The significant driver of the high demand for electric vehicles in China, the United States, and globally are making EV stocks at the forefront of gains. The global EV market could reach $802.81 billion by 2027. With such prospects, the opportunity for investors is interesting, to say the least.
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Top EV Stocks To Watch in Q4 2020: Tesla
It is difficult to make a list of electric vehicle stocks to buy without Tesla (TSLA Stock Report) in it. After all, this is the company that kickstarted the EV industry boom. With the highly anticipated Battery Day happening today, there is certainly much excitement as to what Tesla has to offer in EV technology.
This could give everyone an insight into Tesla’s revenue and earnings in the long run. CEO Elon Musk has hinted at a new nanowire technology for batteries that could increase energy density by 50% from that of standard lithium-ion batteries. This new battery could almost certainly be a substantial upgrade. Tesla’s flagship Model S already has an impressive driving range of 402 miles in a single charge.
No doubt, TSLA stock has been on an impressive run this year, increasing by almost 500% at its peak. But the recent weaknesses in the run up towards the ‘Battery Day’ seems like a ‘buy the rumour, sell the news’ trade to me. Despite receiving a new price target from $480 to $515 from Piper Sandler analyst Alexander Potter last week, TSLA stock appears to be struggling to return to bullishness.
Top EV Stocks To Watch in Q4 2020: GM
For those unfamiliar with General Motors’ (GM Stock Report) history, they have always built iconic cars. With the Corvette, it popularized the mainstream sports car. With the Camaro, it made fast and sporty cars a family purchase. This time, they are about to build iconic EVs. Its electric Cadillac is expected to come out later this year and its electric Hummer is slated for delivery late next year. In fact, GM plans to spend $20 billion on its EV portfolio in a bid to transition entirely to electric vehicles.
GM has also recently inked a $2 billion deal with Nikola (NKLA Stock Report), a start-up company that produces electric trucks. GM appears to be providing validation to the electric truck startup.
This is doubly true after the recent departure of Nikola’s founder Trevor Milton. With GM making all the strategic moves to transition into the EV industry, would GM be able to shape itself to become a strong EV player in the future? If the company’s EV plans could materialize, it is not surprising to see its value multiply in the coming years.
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Top EV Stocks To Watch in Q4 2020: Nio Inc.
Nio (NIO Stock Report) is one of the most promising electric vehicle stocks in the market. Dubbed the “Tesla of China”, the Chinese EV maker appears to be cementing a strong long-term foothold in the rapidly growing market. Although Tesla is currently dominating the space, Nio seems like a strong contender to compete alongside in the long run. The company has reported strong growth and a positive operating margin for the first time this year. These make NIO stock one of the top electric vehicle stocks to watch in the long run.
While some companies appear to be outright copying Tesla, NIO has its own definition when it comes to EVs. The company is also building an EV ecosystem and community through the use of its NIO Houses and NIO Spaces. Most notably, the company is relying on battery swap technology to build out a comprehensive EV infrastructure.
It is BaaS (Battery as a Service) that allows users to swap batteries in minutes. This saves time in comparison with charging batteries. In fact, it may be well-suited to high-density cities in China. Now, with such a positive projection of Nio’s growth, in the long run, would the recent dip be a good buying opportunity?