Are These The Best EV Stocks To Buy Now?
Investors can’t seem to get enough of electric vehicle stocks. The EV space is led by Tesla’s (TSLA Stock Report) 245% year-to-date gain. Tesla is also the world’s most valuable auto stock. This came after years of waiting and hype about electric vehicles. Does this mean the future is here already?
For starters who are just venturing into this space, you might want to tread carefully when dealing with the top EV stocks we have in the market right now. Just a few months ago, when investors were discussing EVs manufacturers, they were mostly either talking about Tesla or Nio. But recently, we have witnessed many EV manufacturers going public through special purpose acquisition companies (SPAC) deals. Nikola was a SPAC bonanza. Due to the popularity and lower difficulties to structure a SPAC, Lordstown Motors is about to become the latest electric vehicle company to go through this path.
Over the past year, the KraneShares Electric Vehicle and Future Mobility ETF (KARS Stock Report) is up 16% versus a modest gain of 1.13% in the S&P 500. This move comes on the back of optimism that rising consumer awareness and strengthening government support for EVs. And when the battery tech improves, we are going to see more migration from traditional energy vehicles to electric vehicles. For this reason, many are betting that the EV space will fully transform the auto industry over the next decade. With all that being said, are these two EV stocks the best stocks to buy now?
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Top Electric Vehicle Stocks To Buy [Or Avoid] For The Next Decade: Nio Inc.
Chinese EV company Nio (NIO Stock Report) has captured many growth investors’ attention this year. This comes after NIO stocks have tripled in value this year over to $15 per share last month before consolidation recently. However, NIO stocks are climbing higher again this week after the company reported strong July delivery figures. Nio saw a huge surge in demand for its SUV during July. The total vehicle volume came to 3,533, which was more than quadruple what Nio delivered in the same period last year. In addition, investors are also looking forward to the market’s reception to the latest EC6 model. The sleek coupé SUV has been available for pre-order last month and should be on the road beginning September.
Everything has changed in the auto industry. China mandated the New Energy Vehicle (NEV), drawing inspiration from California’s Zero Emission Vehicle mandate. It appears that the world’s second-largest economy is pivoting towards more sustainable development to ensure lower carbon emission from their vehicles. As such, we are seeing more Chinese EV stocks making their marks in the global stock market. Li Auto (LI Stock Report) and Kandi Technologies (KNDI Stock Report) recently listed on U.S. stock exchanges. This proves that China is committed to up its game in the EV industry.
With NIO being the most prominent Chinese EV company, there are few reasons to doubt its long growth runway ahead of it given the huge market potential. New vehicle launches and increased production capacity would drive NIO stocks higher. Eventually, there will be economies of scale, and today’s losses will turn into tomorrow’s profits. All in all, investors should consider NIO stock for the long haul because this could be a potential multi-bagger in the making.
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Top Electric-Vehicle Stocks To Buy [Or Avoid] For The Next Decade: Nikola Inc.
Shares of Nikola (NKLA Stock Report) got off to a good start in August. NKLA stocks rose more than 20% during Monday’s session after Deutsche Bank issued a short-term buy recommendation ahead of earnings. Investors also felt more comfortable with Trevor Milton’s partial update on the company’s balance sheet. Analysts are also hopeful that Nikola will offer more information about its Badger passenger pickup truck. This includes details of how the company intends to manufacture the truck and how many people have made pre-orders.
The company has had a rough ride lately. After announcing that its warrants would be available for redemption into shares, the shares fell off the cliff from its high of $90 per share to levels below $30. The good thing is, it seems like the sell-off pressure has eased and the electric-truck is once again starting to take hold. Investors have to note that volatility often haunts the industry, especially when a company isn’t producing any vehicles yet. It’s all just talk for now.
The promise of the industry is undoubtedly attractive, and that’s why shareholders are hoping to get on the train before it departs the station. That said, is this an EV stock to buy and hold over the next decade?