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Should Investors Add These Top Electric Vehicle Stocks To Their Portfolios?
Given the current state of the stock market, electric vehicle (EV) stocks could be a go-to for investors now. Why? Well, as we begin another week of trading, the broader stock market appears to be on the decline. For the most part, this would be a result of investor concerns around April’s rising inflation figures. As a result, some of 2020’s top growth stocks are now trading at attractive prices, EV stocks included. The question now is, should investors be buying on the dip?
The Long-Term Case For EVs
If anything, EV stocks could be looking at massive tailwinds in the long term. On one hand, EVs play a crucial role in the global transition towards more eco-friendly lifestyles. Because of this, governments looking to combat climate change would be more inclined to incentivize EV development. Evidently, President Joe Biden’s recent $2.5 trillion infrastructure plan partially focuses on the EV industry in the U.S. On the other hand, the recent semiconductor chip shortage could see an eventual boom in EV productions as well. With demand for greener vehicles on the rise, the top players in the field would have plenty of unfulfilled orders now. Just last month, Tesla (NASDAQ: TSLA) CFO Zach Kirkhorn said that the leading EV company ended the quarter with its “highest ever” backlog. Meanwhile, Ford (NYSE: F) is also planning to reveal its latest electric truck, the F-150 later this week.
By and large, the EV industry continues to power on despite the recent weakness in EV stock prices. Even Wedbush Securities analyst Daniel Ives believes that the sector is entering a “golden age” now. According to Ives, this would be thanks to global green initiatives and rapidly rising EV demand across the Chinese and European markets. With all of this in mind, here are three EV stocks to watch in the stock market today.
Top EV Stocks To Buy [Or Sell] This Week
Nio is a leading manufacturer of premium smart EVs in China. The company also invests in next-generation technologies in connectivity, autonomous driving, and artificial intelligence. The company differentiates itself through its continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery-as-a-Service (BaaS), as well as its proprietary autonomous driving technologies and Autonomous-Driving-as-a-Service (ADaaS). NIO stock currently trades at $33.44 as of 3:10 p.m. ET.
Source: TD Ameritrade TOS
Recently, the company provided an update for its April 2021 deliveries. Impressively, the company delivered 7,102 vehicles in April, increasing by 125.1% year-over-year. The majority of the deliveries were its ES6s, the company’s five-seater high-performance premium smart electric SUV. It also celebrated a huge milestone for its 100,000th production vehicle rolling off the line together with its users and partners.
In late April, the company also reported its first-quarter financials for 2021. In it, vehicle sales for the quarter were $1.13 billion, skyrocketing by 489.8% year-over-year. Total revenue for the quarter was $1.21 billion. Nio also ended the quarter with $7.3 billion in cash and cash equivalents. The company started the year with a new quarterly delivery record of 20,060 vehicles, representing a growth of 422.7% year-over-year. It also continues to enjoy strong demand for its products. Despite the semiconductor shortage that plagues the world right now, it still expects to deliver 21,000 to 22,000 vehicles in the second quarter of 2021. Given all of this, will you consider buying NIO stock?
Fisker is an EV company that is revolutionizing the automotive industry. It does this by developing next-generation eco-friendly EVs. The company aims to become the No. 1 e-mobility service provider with the world’s most sustainable vehicles. Asides from designing and manufacturing EVs, the company also provides mobility solutions. Its flagship Fisker Ocean is set for mass production in 2022. FSR stock currently trades at $11.01 as of 3:11 p.m. ET. The company will be announcing its first-quarter financials for 2021 after the market closes today.
Source: TD Ameritrade TOS
It also announced today that it has nominated Sharp Corporation to develop technologies to support its next-generation in-vehicle screens and interfaces. The agreement would include the co-creation of technologies and the subsequent manufacture of screens and components from Sharp to support the Fisker Ocean SUV, Project PEAR (Personal Electric Automotive Revolution), and potentially two additional Fisker vehicles.
In February, the company said that its Fisker Ocean program was in high gear and remains on track to start production in 2022. Production will take place at Magna Steyr’s (NYSE: MGA) manufacturing facilities in Europe. It also plans to have a systematic ramp-up to full production in 2023. Last week, the company also announced that it has signed framework agreements with Foxconn (OTCMKTS: HNHPF). This is to support joint development and manufacturing in relation to Project PEAR. Project PEAR is a program to develop a new breakthrough EV. All things considered, will you add FSR stock to your list of top EV stocks to buy?
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Another top EV company on the stock market now would be Xpeng. Similar to our first entry, Xpeng is another leading EV manufacturer based in the booming Chinese EV market. In brief, the company primarily designs, manufactures, and markets “Smart EVs”. Its two flagship vehicles include an SUV (the G3) and a four-door sports sedan (the P7). The likes of which run on Xpeng’s proprietary full-stack autonomous driving technology. Despite having gone public last year, some investors would consider XPEV stock an up-and-coming EV stock now.
Source: TD Ameritrade TOS
In its recent quarter fiscal posted last week, Xpeng saw a massive year-over-year revenue surge of 616.1%. This added up to a total quarterly revenue of over $458 million. According to CEO He Xiaopeng, this exceptional performance is mostly thanks to the company’s record-breaking vehicle deliveries for the quarter.
Namely, Xpeng delivered 13,340 vehicles, marking a 487.4% year-over-year increase. Not to mention, the Swiss National Bank reportedly increased its stake in the company over the weekend. With Xpeng firing on all cylinders and the company’s shares trading below their all-time high, could XPEV stock be a buy?