3 Top Electric Vehicle Stocks To Watch Now For Huge Growth
Electric vehicle (EV) stocks have taken the stock market by storm once again this week. The action among top electric vehicle stocks has certainly been epic, to say the least. You could say that the halo effect from Tesla (TSLA Stock Report) is one of the reasons why these stocks were trading higher. While part of the gains could be due to Tesla’s inclusion into the S&P 500, the solid fundamentals from its Chinese rivals are also lifting the spirits among EV enthusiasts. To top it all off, the increasing activity from traditional automakers like General Motors (GM Stock Report) in the EV space may be a validation for green energy transportation. As you may have already known, last week GM boosted its investment plan on EVs and autonomous vehicles by 35% to $27 billion through 2025. That is an increase of $7 billion from the company’s previous plans.
“We want to lead in this space. We don’t just want to participate, we want to lead,” said Doug Parks, GM executive vice president of global product development, purchasing and supply chain, said during a media briefing. “Tesla’s got a good jump and they’ve done great things. They’re formidable competitors … and there’s a lot of start-ups and everyone else invading this space. We’re not going to subside leadership there.”
While this speaks volumes to the sentiment surrounding EV stocks right now, investors are still hungry for more and are very eager to strike while the iron is still red-hot. But, what other EV stocks should you consider apart from the clear favorite, Tesla? That depends on what you’re looking for. There has now been an increasing variety of EV stocks out there to fit your preference. Yet, with a fair amount of hype in the market, it is not surprising that the euphoria may have become a bigger driver than actual fundamentals. With all that in mind, are these 3 EV stocks the best stocks to buy right now?
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Top Electric Vehicle Stocks To Watch: Nio Inc.
First up, Chinese electric vehicle maker Nio Inc. (NIO Stock Report). There’s no question that Nio has been one of the best performing EV stocks in the stock market this year. Shares of NIO stock are up nearly 1400% year-to-date as of Monday’s closing of $55.38 per share. It last traded at $53.15 as of 10.01 a.m. ET.
In the company’s third-quarter report, sales rose by 146% to $628 million. Deliveries for the quarter were at 12,206 vehicles. Besides, vehicle margin came in at 14.5%, compared to the quarter-ago value of 9.7%. While Nio has yet to be profitable, its quarterly losses per share continue to narrow. The company reported an adjusted loss of $0.82 per share for the quarter, significantly improving from the loss of $1.08 per share the previous quarter.
The company mainly caters to the SUV market. While Nio 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. It is also expanding its lineup 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 stock in your portfolio?
Top Electric Vehicle Stocks To Watch: XPeng Motors
XPeng (XPEV Stock Report) has been on a winning streak with its shares climbing steadily over the past month. All eyes are on XPEV stocks as the company had another breakout on Monday, closing at $72.17. It last traded at $68.85 as of 10:10 a.m. ET. Its most recent rally came after the company made a major tech announcement and unveiled a new limited model during an auto show in Guangzhou, China. In particular, XPeng will incorporate lidar sensors for the first time in its vehicles.
From its latest quarterly report, 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, the 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’s core business has been relying on its innovation through its in-house R&D and data-driven capabilities. From the auto show in Guangzhou, the company said that it has upgraded its advanced driver-assist systems for its 2021 production models. Xpeng’s “next-generation autonomous driving architecture” is a complete system that includes cameras, radar, ultrasonic sensors, the new lidar units, and an automotive-grade high-performance computer. 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 plans for a new factory and overseas business. This reflects a strong appeal for XPeng’s products and will no doubt drive the company’s success in the long run. With Xpeng’s sales momentum looking to continue for some time, won’t it be exciting to have a piece of this company even after the recent spike in its stock price?
Top Electric Vehicle Stocks To Watch: CIIG Merger Corp.
British electric vehicle start-up Arrival is also another EV stock that has been on the upward trend since last week. The company is the latest EV company going public via a special purpose acquisition company (SPAC). It will be merging with CIIG Merger Corp (CIIC Stock Report). The EV SPAC started the week strong with another 14% gain on Tuesday as of 10:12 a.m. ET, adding to its 49.7% gains from Monday. Unlike many other EV companies out there, Arrival focuses on electric buses and vans, not passenger vehicles.
This year has seen a flurry of EV manufacturers going public through the SPAC pathway led by Nikola (NKLA Stock Report) and Workhorse Group (WKHS Stock Report). So what makes Arrival so special? Part of it is that Arrival uses micro-factories instead of large-scale production facilities. This way, Arrival could reduce the capital requirement for manufacturing. That could reduce costs for their customers, potentially helping to accelerate the shift to EVs.
More importantly, unlike other EV SPAC companies, Arrival already has an impressive order backlog. According to the company, it has received $1.2 billion in orders. And even more excitingly, part of that backlog is an order from United Parcel Service (UPS Stock Report) for 10,000 electric vans. Investors also must remember that Arrival does not compete directly with Tesla or Fisker (FSR Stock Report) as these two companies focus on consumers. With contracts worth $1.2 billion and production scheduled for the last quarter of 2021, could Arrival dominate electric vans and buses in the long run? If so, is CIIC stock on your watchlist today?