A string of electric vehicle companies went public last year, pushing the valuation of electric vehicle stocks to new heights. While these companies are far from making a profit, they are a way for investors to bet on the future of transportation.
EV companies have sparked widespread customer interest, suggesting they are not far from making a profit.
The current war between Russia and Ukraine has put alternative energy sources in the spotlight. Oil and gas prices have soared in recent months and even the traditionalists are pondering the inevitability of EVs.
Nevertheless, the recent downturn in the stock market has removed much of the frothiness in EV valuations. Most stocks of electric vehicles have fallen sharply, providing attractive entry points.
Let’s take a look at seven of the most promising electric vehicle stocks in the article.
Electric vehicle stocks: Nioz †NIO†
Nioz (NYSE:NIO) is one of the leading Chinese companies that has experienced tremendous growth in recent years. It recently delivered its 200,000th vehicle and has found its way to the European market.
The company’s latest delivery chart disappointed investors, but the meager result was largely expected. Automakers have been hit hard by the recent Covid-19-induced disruptions in China.
However, when we look at the bigger picture, Nio has done remarkably well by aggressively growing deliveries and sales each quarter.
Nio has big plans to spread his tentacles in Europe. Last year he already made his way into the Norwegian market with his ES8 SUV.
According to the International Energy Agency, China and Europe are likely to be two dominant EV markets by 2030. As the company expands its product line and geographic reach, it has set itself up for monstrous growth in the future. Hence, despite the risks, NIO stocks remain an attractive EV game.
Ford (NYSE:f) is an automotive titan who has been in the business for over a century. It now plans to make a big splash in the burgeoning EV arena and challenge the industry’s stalwarts.
Ford plans to ramp up spending on its hybrid and electric cars up to $50 billion, up to $20 billion from previous estimates. In addition, it will split its activities into separate units.
Its strategy can effectively maximize cash flows from its legacy auto manufacturing business and use it to grow its EV business. In addition, it will prevent prices for its EVs from being reduced by operating its fleets separately.
Also, investors will find it much easier to value the automakers based on the sum of their parts. It’s got the brand and scale to effectively compete with the giants of the EV space and new upstarts that have been making waves of late.
So there’s plenty to look forward to with Ford’s plans for its impeccable EV business.
ChargePoint (NYSE:CHPT) is the leading share of EV infrastructure with approximately 70% of the North American market.
In addition, it is also active in Europe, currently operating in 16 countries in the region. The turnover of its European activities has grown enormously over the past year, and 51,000 out of 174,000 ports in total are installed in Europe.
Revenues have grown at a rapid pace in recent quarters. Last year, corporate sales grew 65.50%, with a gross margin of 22.20%. The company earns its revenue from a variety of sources, including subscriptions, warranties, and charger sales.
Most of the revenue is generated by the sale of chargers, but the contribution of other services has increased remarkably. The CHPT stock has lost more than 50% of its value in the past six months, making it significantly more attractive than in the past.
Lucide Group †LCID†
Lucide Group (NASDAQ:LCID) is an up-and-coming Chinese EV upstart who is making waves with his massive reservation backlog. Showing the recently released results $57.7 million in revenue from 360 vehicle deliveriesexceeds analyst expectations by more than $2 million.
In the same quarter last year, it made just $330,000 in sales as the quarter ended just before praising deliveries.
Lucid is targeting delivery of 12,000 to 14,000 vehicles, a significant drop from its previous estimate of 20,000 deliveries. Ongoing disruptions from Covid-19 in China have negatively impacted production targets, but the company remains confident in meeting its latest target.
On the other hand, reservations have grown to 30,000, compared to 13,000 in September last year. The hulking reservation number could result in potential revenue of $2.9 billion.
In addition, it is continuing its plans to develop a facility in Saudi Arabia that offer $3.4 billion in funds over the next 15 years to the EV maker.
Li Auto †LI†
Smart EV producer Li Car (NASDAQ:LI) deliveries have grown remarkably in recent years.
In the first quarter of this year deliveries shot up to 31,716an incredible 152% increase over the same period last year.
In addition, revenue of $1.51 billion exceeded analyst estimates by $70 million, representing a 167.50% improvement over last year. In addition, gross margins were fantastic at 22.6%, compared to 17.3% in the first quarter of last year.
Despite an encouraging first quarter, investors were left with a sour taste after Li’s lackluster second quarter update. Revenues are expected to fall in the $972.3 million and $1.11 billion range, well below the consensus of $1.75 billion.
For obvious reasons, the Chinese EV maker expects a tough interim period, but the long term remains with new models coming online in the coming quarters. Therefore, earnings are likely to grow at an exciting pace later on.
QuantumScape (NYSE:QS) is a developer of solid-state batteries that represent the next frontier of energy storage. These batteries are significantly denser than traditional lithium-ion batteries.
They can significantly increase the range of an electric vehicle with the same battery size. In addition, the company expects to produce cells for its test cars next year and to start commercial production in 2024†
QS has achieved all of its milestones from last year and has successfully tested its 10 subsequent cells. It will work on the development of multi-layered cells with multiple dimensions. The cells used in EVs require multiple layers in each battery pack, and the company must also limit its production costs. If all goes well, the company may have a huge market for its cells in the future.
In addition, it cooperates with some of the major OEMs (Original Equipment Manufacturers), including its key partner volkswagen.
Electric Vehicle Stocks: XPeng †XPEV†
XPeng (NYSE:XPEV) is a luxury Chinese EV maker that has been doing incredibly well in recent times compared to its peers. The April delivery card showed a healthy 75% increase from the same month last year and significantly outperformed its competitors.
It 9.02 EVs delivered, with its flagship P7s and P5s leading the way. In March, deliveries increased by more than 200% year-on-year, and supply and production growth slowed significantly in April due to the new Covid-19 outbreaks.
Still it expects deliver an amazing 31,000 to 34,000 EVs representing delivery growth of 78.2% to 95.4% year on year. Supply chain disruptions and higher raw material costs are likely to be an issue, but if it can minimize these issues, XPEV stock is in for an interesting time.