3 Top Electric Vehicle Stocks To Watch Right Now
Investors who held on to electric vehicle (EV) stocks this year have made significant gains. There are good reasons for these gains as the world shifts toward clean energy. But with the space getting so hot this year within the stock market, basically anywhere you looked, things were going up by double-digit percentages practically overnight. However, the recent pullback among top electric vehicle stocks serves as a reality check, showing us that not all stocks could turn into treasure. While Tesla (TSLA Stock Report) has been the obvious choice when it comes to investing in EV stocks, investors might want to look elsewhere for better growth amid the sky-high valuation of TSLA stock.
Sure, with EV stocks soaring to new heights this year, some are wondering if these companies will eventually meet gravity. With the volatile movement in the space, I don’t blame you for wanting to take profit or cut loss. But let’s be clear over here, and try not to get too emotional when the market takes a dive. You see, the meteoric rise among top EV stocks is not unwarranted. The industry rewarded investors with its strong deliveries and improving operating margins despite the headwinds caused by the pandemic.
Considering the fact that we have vaccines from Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report) working effectively thus far, the hope for a strong recovery in the economy couldn’t be more pronounced. And this is expected to bode well for electric vehicle manufacturers when consumers have more disposable income to spend. With the secular trend towards electric vehicles, would these EV stocks be great buys amid the recent dip?
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Top Electric Vehicle Stocks To Buy [Or Sell] Right Now: XPeng
First up, XPeng (XPEV Stock Report) stocks have been gaining attention again after the company entered the European market with the delivery of an initial batch of 100 G3 SUVs to Norway. It can be confusing when there are so many EV stocks to choose from in the market. The company delivered 4,224 vehicles in November, a 342% increase year-over-year. Total deliveries amounted to 21,341 vehicles year-to-date 2020, an 87% jump year-over-year.
Despite the positive numbers from the company, several investors have legitimate concerns surrounding Xpeng. At the moment, you could say that the biggest concern has to be the new legislation that could remove Chinese companies from U.S. exchanges. With the bill now signed by President Trump, it’s understandable that investors would feel uneasy with all Chinese stocks, which includes XPEV stock. On the other hand, the prospects remain bright. That’s because President Xi Jinping hopes that China will become carbon-neutral by 2060. There is no doubt that the transition to electric vehicles or other renewable energy vehicles will be part of the strategy. If you have been following StockMarket.com, you would also know that China is the largest market for EVs globally.
Xpeng will have to keep innovating to provide the consumer with more options and compete with its rivals. Xpeng’s core business has been relying on its innovation through its in-house R&D and data-driven capabilities. 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 now that it’s trading well below its all-time high?
Top Electric Vehicle Stocks To Buy [Or Sell] Right Now: Nio
If you are into EVs, chances are you have heard of Nio (NIO Stock Report). NIO stock skyrocketed more than 1,000% this year, making it one of the best performing EV stocks in the stock market. The consistently strong deliveries this year have certainly been very encouraging, Assuming history would serve as a good guide, with a conservative estimate, we could see an explosion in its revenue. Just to recap, Nio has achieved a positive operating margin this year.
Nio’s third-quarter fiscal report was sensational. Sales increased by 146% year-over-year. Its loss of 12 cents per share and sales of $667 million beat Wall Street’s estimates of a loss of 19 cents per share and $663 million in sales. The company continues to grow at an explosive rate in the most promising EV market in the world. It also reported strong fourth-quarter guidance. The company estimates that it will deliver between 16,500 and 17,000 electric vehicles in the fourth quarter.
The real question entering 2021 here is whether Nio can keep up with investors’ high hopes. The company’s current annual run-rate is only about 50,000 to 60,000 EVs. Nio stock is sizzling even at current prices. 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 the company reporting December deliveries in a few days, would you bet on NIO stock amid the recent pullback?
Top Electric Vehicle Stocks To Buy [Or Sell] Right Now: Magna International
I know what you are thinking, Magna (MGA Stock Report) isn’t exactly an EV stock. But it’s worth the mention. For the uninitiated, Magna is a Canadian mobility tech company for automakers. It produces automotive systems, assemblies, modules, and components. More importantly, it supplies an impressive list of automotive makers. Its recent partnership with Fisker (FSR Stock Report) is lifting the stock’s near term prospects. And if you don’t already know, the company currently supplies EV components to Tesla, General Motors (GM Stock Report), and Ford (F Stock Report). Reports also said that Apple (AAPL Stock Report) had met with Magna for a possible involvement in the iCar project. But that’s not the reason why it’s been trading higher lately.
Instead, it is the partnership with LG Electronics to manufacture e-motors, inverters, and other related e-drive systems for electric vehicles (EV) that sent the stock higher lately. It will see the formation of a new company called LG Magna e-Powertrain. On one hand, LG Electronics is a force to be reckoned with in the field of EV component development. On the other hand, Magna’s expertise in electric powertrain systems and world-class automotive manufacturing is formidable as well. The joint venture marks a powerful alliance in the EV industry. Naturally, investors would be delighted to hear this news as the company is expanding its EV portfolio. Considering the growth of the industry, this is a spectacular move by Magna.
In its third-quarter fiscal report, Magna brought in $9.13 billion in total revenue for the quarter. The company intends to drive sales up after being impacted by the coronavirus pandemic earlier in its fiscal year. Considering all that, MGA stock could be a way to invest in the broader EV play without betting on any single brand. Will you be adding it to your watchlist?