Are These Battery Stocks Well Positioned To Supercharge Your Portfolio?
The automotive industry is undergoing a massive change. Automotive stocks with technology elements- the electric vehicle stocks are the market’s most loved stocks right now. We saw Nio’s (NIO Stock Report) strong rally in the past month. This has enticed investors to search for the top EV stocks to buy right now. Strong deliveries results in Nio shows that there’s a market for other EV brands apart from the industry’s leader Tesla.
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. As a result, investors who seek to consider a new avenue for investments in the future can also look into the global automotive battery market.
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Automotive Battery Stocks Could Be The New Gainer Amid EV Revolution
The sale of electric vehicles may not outrun that of conventional combustion engines any time soon. But the truth is, we are increasingly seeing the shift towards EV due to environmental and sustainability reasons. The demand for lower emissions to combat global warming is getting more traction. This came after some conspiracy theories stating that the coronavirus could transform into what it is today due to a warmer climate. That aside, more consumers are turning to vehicles that are fossil-fuel-free that would have no emission.
More importantly, the growing cost-effectiveness of lithium-ion batteries is a major driver contributing to the rise of electric vehicles on the road. The improvement in battery tech and lowered costs contributed to the rise of EV. Now, batteries are slowly entering the minds of investors. With that in mind, could these battery stocks be a good investment for the second half of 2020?
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Top Battery Stocks To Watch In July: Tesla
OK, I know what you are thinking. Tesla is not exactly a battery company. The largest EV manufacturer Tesla (TSLA Stock Report) has set a date for its battery technology day. The event will take place on 22nd September 2020 in California. This is a huge deal for investors to learn more about EV technology and how it could affect their profit margins in the long run.
Wedbush analyst Dan Ives thinks the battery event will be a positive catalyst for Tesla stock. “Musk & Co. are slated to announce a number of new potential game changing battery developments,” Ives wrote in a Sunday research report. He’s expecting a million-mile battery announcement, among other enhancements. A million mile battery would last 1 million miles through all weather and charging cycles. That would represent “a major step forward when competing versus traditional gasoline powered automotive competitors.”
When it comes to TSLA stock, it’s hard to catch up considering the bullish sentiment for the past few weeks. Many analysts had given a $1,250 price target for Tesla stock, but the bulls know that’s already history. Dan Ives on the other hand, gave a $2,000 price tag for TSLA stock. Of course, this is assuming the battery technology day could have a new breakthrough during the event. Nothing seems impossible when it comes to Elon Musk and new technology, if history serves as a good guidance.
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Top Battery Stocks To Watch In July: Panasonic Corporation
Panasonic Corporation (PCRFY Stock Report) is a household name that’s been around for as long we all can remember. Panasonic is a large-cap stock with a market cap of about $22 billion. In fact, the company has been around since 1918. PCRFY stocks are traded over the counter in the US via the company’s American depositary receipt program. OTC stocks are often small-cap stocks attached to small companies that can’t afford a listing on a major exchange. But that’s obviously not the case for Panasonic, considering their high valuation.
The company’s deal with EV manufacturer Tesla to provide automotive batteries, which it signed in 2014, may be starting to finally pay off. Panasonic invested a lot of money into building a production facility in Nevada. It hadn’t started seeing a profit from the facility until this past quarter. Although Panasonic is no longer Tesla’s exclusive battery supplier, it has been able to turn around the U.S. joint battery business as demand for Tesla’s electric vehicles continues to soar. Apart from Tesla, the company also partnered with Toyota to manufacture batteries for their EV. With all that being said, is PCRFY stock the best battery stock to watch as demand for EV soars?