Looking For The Best EV Stocks To Buy Right Now?
Electric Vehicle (EV) stocks have had a remarkable 2020 so far. These stocks have made unprecedented gains in the last 6 months. What could be the reason for this growth? With the effects of climate change being felt all over the world, you can start to see why more people are adopting EVs. From the California forest fires in August to melting ice caps in Antarctica, we are at a turning point of catastrophic proportions as a civilization. This would be the catalyst for the world to embrace clean energy and move away from traditional fossil fuel which generally contributes to climate change. Tesla (TSLA Stock Report) for example, has already seen explosive growth in the stock market in just this year.
This is evident as top electric vehicle stocks to watch have enjoyed widespread adoption and have been under many investors’ radar recently. Take Li Auto (LI Stock Report) for instance, where the company’s share price has jumped by 27% in the past 24 hours. This is due to recent Chinese EV sales data causing investors to anticipate strong growth from this EV stock. Li Auto has just reported its quarterly earnings today.
With the COVID-19 pandemic wreaking havoc on the automotive industry, you would think that investors would be wary of EV stocks. However, with Joe Biden set to take the White House in January, there is a real incentive for the EV industry. Joe Biden has run on a platform to build a more resilient and sustainable economy. He plans to put the United States on an irreversible path to achieve net-zero emissions, economy-wide, by no later than 2050. This along with easing the U.S. – China trade tensions could spur the EV industry to new heights. With that in mind, are these the top EV stocks to watch before next week?
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Best EV Stocks To Buy [Or Sell] Now: Nio Inc.
One of the most prominent Chinese EV stocks to date is NIO (NIO Stock Report). The company is a pioneer in China’s premium smart electric vehicle market. NIO’s share price has enjoyed a staggering 1200% increase year-to-date and is currently priced at $52.95 as of 9:55 a.m. ET. No other company has demonstrated such a radical shift in consumer and investor perception of EVs than NIO.
In the company’s second-quarter fiscal posted in August, NIO reported revenue of $526.4 million. This represented a 146.5% increase from a year earlier. Topped that with vehicle sales of $493.4 million and a cash flow of $1.6 billion, the company certainly has strong fundamentals. Will this make NIO an EV industry leader in the years to come? With China’s EV market expected to expand rapidly in the coming years, investors are betting that NIO will thrive even with intense competition.
The company mainly caters to the SUV market. While the Shanghai-based company trails behind the likes of Tesla in sales volume, it has been catching up. NIO’s monthly sales passed 5,000 for the first time in October. NIO is also expanding its line up and plans to introduce a new model each year going forward. This will no doubt boost NIO’s sales in the years to come as the demand for EVs increases. With so many exciting things happening to NIO, will you consider having NIO stocks in your portfolio?
Best EV Stocks To Buy [Or Sell] Now: XPeng
Another EV stock to be on the lookout for is XPeng (XPEV Stock Report). The company is one of China’s leading smart EV company. XPeng develops and manufactures smart EVs that are seamlessly integrated with advanced AI and autonomous driving technology. XPeng has seen a 154% increase in its stock price in the last 2 weeks and is currently priced at $49.04 as of 9:55 a.m. ET. Its most recent 33% rally came after the company had announced its third-quarter financial report on November 12.
In its latest quarter, the company had exceeded analyst expectations. The company had delivered 8,578 vehicles in this quarter, representing an increase of 265.8% year-over-year. Its long-range smart sedan, P7 boasts an impressive driving range of 706km and features the XPILOT 3.0 autonomous driving system. Deliveries of its P7 model had reached 6,210 units, compared with 325 units in the second quarter of 2020.
Xpeng core business relies on its innovation through its in-house R&D and data-driven capabilities. The company CEO, He Xiaopeng states that this will keep XPeng at the forefront of the smart EV industry and also positions the company for future growth. The company has expansion plans for a new factor and overseas business. This would reflect a strong market appeal for XPeng’s products and will no doubt pay off for the company’s success in the long run. With that in mind, won’t it be exciting to have a piece of this company?
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Best EV Stocks To Buy [Or Sell] Now: Fisker Inc.
Last on this list of EV stocks is Fisker (FSR Stock Report). Fisker was founded by Danish automotive designer Henrik Fisker. He is best known for designing luxury cars such as the legendary BMW Z8 and Aston Martin DB9. Fresh of its merger with Spartan Energy Acquisition, investors are now anticipating Fisker’s brand of EVs.
With the completion of the merger, Fisker expects to have in excess of $1 billion of cash on the balance sheet. This will fully fund Fisker’s operations and development of the Fisker Ocean program. In other words, Fisker will not need to raise any more capital that would dilute existing shareholders. The company’s share price has skyrocketed by 16% and is now priced at $17.48 as of 9:56 a.m. ET. Fisker plans to start production of Ocean by the fourth quarter of 2022.
The Fisker Ocean will be designed to be the world’s most sustainable vehicle. It will include extensive use of environmentally friendly and recycled materials. The company is pricing its base model for Ocean at $37,499 and will also have a cheap leasing option. Fisker also plans to produce a lifestyle pickup EV truck by 2024 and a sport crossover in 2025. The company also expects to make $2 billion in earnings by 2024. With all being said, will Fisker stocks be a top EV stock to have?