- Electric vehicle (EV) stocks are likely to benefit from increasing global demand.
- Blink Charging †BLNK): Turnover increases as international expansion continues.
- Li Auto †LI): Despite the recent resurgence of the pandemic in China, Li Auto is among the top ten EV names in China.
- Nioz †NIO): While the US stock is in danger of disappearing, its global business is expanding.
- Tesla †TSLA): To solve supply chain problems, Tesla recycles and manufactures some materials and parts.
- workhorse †WKHS): Management is confident that Workhorse will meet production targets.
The disruptive EV industry is driven in part by: environment to care. As required by the Paris AgreementMany countries have agreed to reduce their greenhouse gas (GHG) emissions to zero by 2050. Recent Statistics from the US Environmental Protection Agency suggest that transport is the largest source of greenhouse gases with a share of 27%. InvestorPlace.com readers should know that petroleum-based fluids, such as gasoline and diesel, account for about 90% of the energy source in transportation.
In addition to environmental initiatives, the current war in Ukraine has put alternative energy sources and electric vehicles in the spotlight. Energy costs have risen enormously in recent months. While the situation is not like the tragic gas shortages of the 1970s, the current disruption in Eastern Europe has put significant pressure on oil supplies and prices.
According to Allied Market Research“The global electric vehicle market was valued at $163.01 billion in 2020 and is expected to reach $823.75 billion by 2030, growing at a CAGR of 18.2% from 2021 to 2030.”
But despite the potential growth in the sector, S&P Kensho Electric Vehicle Index is down 32.7% year-to-date (YTD) and 33.4% over a 12-month period. Therefore, many electric vehicle stocks now offer better value.
With that information, I’ve put together a list of the top five electric vehicle stocks worthy of your attention:
|BLNK||Blink Charging Co.||$16.69|
|LI||Li Auto Inc.||$24.39|
|WKHS||Workhorse Group Inc.||$3.02|
Best Electric Vehicle Stocks: Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) provides charging equipment and services. In other words, even though it doesn’t produce EVs, it still occupies an important place in the industry.
Blink Charging released first quarter (Q1) results on May 9† Sales hit a record high of $9.8 million with an increase of 339% year-over-year (YOY). Net loss for the quarter was 36 cents per share, compared to 18 cents for Q1 FY21. Cash and marketable securities totaled $161.9 million as of March 31.
Management believes the company is on track to grow globally. Following the acquisition of Electric Blue in the UK, the company is now present in 19 countries, including the US, UK, Belgium, Greece and nine countries in Latin America.
Despite the revenue growth, BLNK’s stock is down 38.1% YTD and 52% over a 12-month period. Meanwhile, the shares are trading on 29.2 times turnover. At the moment, the average 12-month price forecast for BLNK . is stands at $25†
Li Auto (LI)
The next stock on the list, Li Auto (NASDAQ:LI), is a major player in the Chinese EV market. It relies on its own internal combustion engine range extender to appeal to a wider customer base. Li Auto is in the top 10 EV manufacturers in China, which tops the list of greenhouse gas emissions
Domestic Chinese policy encourages drivers to choose EVs for their next car purchase. Recent research by Mordor intelligence suggests that the national market could grow at a compound annual growth rate (CAGR) of more than 30% between 2022 and 2027.
Li Auto announced unverified Q1 results on May 10. Revenue came in at RMB 9.31 billion — or $1.47 billion — an increase of 168.7% from RMB 3.46 billion a year ago. Meanwhile, the non-GAAP diluted loss per share was 7 cents. Free cash flow (FCF) came in at $79.2 million.
Management expects to deliver between 21,000 and 24,000 vehicles in the second quarter. Despite the resurgence of the Covid-19 pandemic in China, investors are looking forward to the launch of the new line L9 in the third quarter.
LI shares are down 17.6% YTD but are up 20% over a 12-month period. Shares change hands at 4.32 times sales. Meanwhile, the 12-month median price forecast for Li Auto is $33.36†
Best Electric Vehicle Stocks: Nio (NIO)
This third EV stock, Nioz (NYSE:NIO), also comes from China. It distinguishes itself with battery change and autonomous driving technologies.
Nio released Q4 FY21 unaudited results as of March 24. Total revenue came in at RMB 9,900.7 million — or $1,553.6 million — an increase of 49.3% YOY. The adjusted diluted net loss was 16 cents per share. Cash and equivalents totaled $2,406 million.
Management noted that shipments for the ES8, ES6 and EC6 totaled 9,652 vehicles in January and 6,131 vehicles in February, up 33.6% and 9.9% YOY, respectively.
InvestorPlace.com readers will recall that the U.S. Securities Exchange Commission (SEC) has added dozens of companies to a list of companies that can be banned from US exchanges† The list mainly includes Chinese companies, including Nioas well as its rivals, Li Auto and XPeng (NYSE:XPEV†
As a result, NIO share has lost almost 50% YTD. Shares are trading at 3.91 times forward sales and the 12-month median price forecast for Nio stocks stands at $30.87†
The next one is Tesla (NASDAQ:TSLA), arguably the most well-known EV manufacturer. This EV pioneer has disrupted the traditional auto industry and encouraged other players to include EVs in their product lines.
Tesla reported Q1 results in early April. Revenue came in at $18.75 billion, an 81% year-over-year increase. Adjusted EPS was $3.22, up 246% from the same period last year. FCF was $2.2 billion.
Despite global supply chain problems, management is eager to increase capacity. To overcome some of these obstacles, Tesla manufactures and recycles the necessary parts and materials.
Along with most other EV stocks, TSLA stock is down 29% YTD, but still up 16.46% over a 12-month period. The shares are trading at 61.7 times forward earnings and 14.37 times forward sales. The current 12-month average price forecast for Tesla stock is $1,125†
Best Electric Vehicle Stocks: Workhorse (WKHS)
The last EV stock on our list is workhorse †NASDAQ:WKHS† Its products include vans and drones for the commercial transportation industry. We need to remind readers that Workhorse is still a pre-revenue EV name.
workhorse reported Q1 results on May 10. The net loss was $22.1 million. Cash and equivalents totaled $167 million. During the quarter, it opened a new design center in Wixom, Michigan to enhance engineering capabilities.
Management believes it is successfully meeting several milestones. It expects production of class 4 vehicles to start in the third quarter. Production of class 5 and 6 vans and trucks is likely to start in the third quarter of 2023, with more products likely to come in 2024.
Highlights of Recent Research“The global electric commercial vehicle market is expected to reach more than two million units by 2028, with a compound annual growth rate between 2020 and 2028 of approximately 41 percent.” In other words, Workhorse could actually accommodate some of that growth.
Nevertheless, the WKHS share has fallen by 32% in the past year and by 63%. Finally, the 12 months median price forecast for Workhorse is $6† The stock could appeal to potential investors whose portfolios can handle the volatility associated with an EV stock before earnings.
At the date of publication, Tezcan Gecgil had no (direct or indirect) positions in the securities referred to in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com’s publishing guidelines.