Are These 2 Top Electric Vehicle Stocks A Good Buy For Your Portfolio In 2020?
The sector for automotive stocks was hit hard by the pandemic. A lot of automotive companies had to stop all production because of social distancing guidelines. With that, came the closure of dealerships as well. As a result, automotive stocks were in a poor position for a long time. The future of automotive stocks could not be predicted as places were still closed.
That is until now, where many electric vehicle stocks have been surging due to. Most investors know that Tesla (TSLA Stock Report) has reached record highs it had never seen before. That is because of the rapid growth of the company and the electric car industry. Electric cars have taken the automotive world by storm. Companies related to electric car charging like Blink Charging (BLNK Stock Report) are on the rise as well.
When there is a news related to a coronavirus vaccine, automotive stocks can rise in the market. This is due to the world reopening after the vaccine is found. It may take a long time for the economy to make a comeback. But once this vaccine comes out it will accelerate that a lot. Now it’s time to have a look at two top electric vehicle stocks that are trending in the market this year.
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Top Automotive Stocks To Buy (Or Sell): Workhorse Group
The first electric vehicle stocks we will take a look at is Workhorse Group Inc. (WKHS Stock Report). Workhorse is an automotive manufacturing company that is based in the United States. The company produces electrically powered delivery and utility vehicles as well. The company was formerly called AMP Electric Vehicles but changed names in 2015. Analysts predicted Workhorse’s revenue to be $270,000. Instead, it reported revenue of $92,000.
With that being said, the company is still making many advancements in the electric vehicle industry. The CEO of Workhorse, Duane Hughes, said in a statement, “After acquiring the requisite various state and federal approvals in recent months, we are now the only medium duty BEV OEM permitted and able to sell and deliver our vehicles in all 50 states, which should allow us to further distance ourselves as the first movers in the last-mile EV space.” This positive outlook could cause WKHS stock to rise in the future.
WKHS stock price has already been on the rise in 2020. In February, WKHS stock price was at $3.55 a share. Since then it has risen to $16.40 a share as of August 19th. Currently WKHS stock is $1 higher than when it fell due to those earnings reports. With such a large rise in 2020, WKHS stock price has the potential to go even higher. That is why WKHS stock is on this list of top electric vehicle stocks to watch.
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Top Automotive Stocks To Buy (Or Sell): Nikola Corporation
The second automotive stock on this list is Nikola Corporation (NKLA Stock Report). Nikola is an electric vehicle company that plans on producing many products in the future. The company has not produced vehicles yet but has announced a number of them. The company focuses more on electric trucks rather than cars. On June 4th, 2020, Nikola Corporation went public on the NASDAQ. Since then NKLA stock has had some ups and downs in the market.
NKLA stock price was around $33 a share when it went public. Then shares of NKLA stock soared as high as $79 a share on June 9th. Since then, the hype for NKLA stock has died down. This is due to not many recent announcements from the electric automaker. In mid-July, NKLA stock price was at $38 a share on average. Since then, NKLA stock has reached $43 a share on August 19th. This 13.15% increase isn’t much but is still showing that the NKLA stock price is on the rise.
The automotive sector is always advancing. Many automotive stocks are close to recovery, like Toyota Motor Corporation (TM Stock Report). Some automotive stocks are down but have the potential to recover like General Motors Company (GM Stock Report). That is why there are many great automotive stocks to watch in the market. All are contributing factors as to why WKHS stock and NKLA stock are potential electric vehicle stocks to buy.