Are These Electric Vehicle Stocks On Your Watchlist?
In a market that is increasingly receptive to new innovations, investors are turning to electric vehicle stocks for growth. This year has been especially kind to EV stock investors. This is as the biggest names in the electric vehicle space keep getting bigger. For instance, shares of Tesla (TSLA Stock Report) have soared more than 400% year to date. The company’s valuation got a further boost after the 5-for-1 stock split announcement. As a rising tide lifts all boats, other top EV stocks in the market are also soaring. But when TSLA stock falters, can we assume that other EV stocks will follow suit? Now that Tesla extends their pullback as one of its major shareholders trimmed its holdings, what could happen to the EV space? Your guess is as good as mine.
Of course, traditional auto companies aren’t going to sit back and just watch their market share collapse. Practically every major automaker is aggressively expanding into electric vehicles, hybrids, and other green alternatives. For instance, General Motors (GM Stock Report) plans to sell more than 20 EV models around 2023. This is as its core business appears to be on long term decline. With so much innovation happening in the space, there’s no reason why GM wouldn’t want to leverage its automotive expertise to get ahead.
Now back to our main question, should investors buy other EV stocks in the market? It appears to me that investors are still pretty comfortable in investing in the electric vehicle industry. And that could be because when Tesla was rallying strongly, other EV didn’t gain to the same extent. Having said that, here are 3 electric vehicle stocks to watch as we enter September.
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Top Electric Car Stocks To Buy [Or Sell] In September 2020: Nio Inc.
Shares of Nio (NIO Stock Report) are bound for some volatility. This comes after the company’s recent secondary stock offering. The Chinese electric vehicle maker reported that it had sold 88.5 million American depositary shares at $17 each, raising approximately $1.5 billion. The offering is larger than what the company initially planned.
That may appear positive, but the offering price was below the market price of NIO which was $18.50 on Friday. While most of the attention has been on Tesla, Nio isn’t doing too bad itself either. In fact, NIO stock is 435% higher year-to-date. It, in fact, outperforms Tesla’s 420% rally. The strong post-COVID-19 sales rebound, an upbeat second-quarter earnings report, and the cash injection from the Hefei government is sending bullish signals to investors.
Top Electric Car Stocks To Buy [Or Sell] In September 2020: Li Auto
Next up, the Chinese EV maker Li Auto (LI Stock Report) reported solid August deliveries on Wednesday morning. Despite having a roller coaster ride with its share prices, the fundamentals remain strong. With a strong focus on “premium” electric vehicles, the company is hitting the sweet spot in the world’s largest electric vehicle market.
Analysts who looked closely at Li Auto appear to like it. Goldman Sachs and Bernstein initiated coverage of the company with bullish ratings last week. Investors are also starting to pay close attention to this new EV player in the stock market.
Top Electric Car Stocks To Buy [Or Sell] In September 2020: Workhorse Group
Last on the list, Workhorse Group (WKHS Stock Report) doesn’t catch investors’ attention the way Tesla and Nio do. However, its niche has the potential to be extremely lucrative. Workhorse is one of three finalists bidding for a contract with the United States Postal Service. The USPS wants to replace its aging fleet of 180,000 delivery vans. This contract could be worth more than $6 billion.
Should Workhorse be successful, this would prove to be a huge deal for the company. And with its recent deal with Hitachi (HTHIF Stock Report) to ramp up production for the new packaged delivery vans, things are beginning to look more hopeful for the company.