June
6, 2021
7 min read
This story originally appeared on StockMarket
These 5 EV Stocks Are Grabbing Investors’ Attention Right Now
Electric vehicle (EV) stocks are shooting up in the stock market recently. Before we get into it, let’s also acknowledge that the great divide between legacy automakers and electric vehicle startups is fading. And that has created plenty of new opportunities for investors looking for top electric vehicle stocks to buy. This came as these new and legacy players are rolling out their new EVs to diversify their lineups.
Now, we know that renewable energy will be playing a bigger role in our future. Admittedly, most of the attention has been on the latest consumer electric vehicle companies. But let’s not forget EVs for commercial use. Package delivery companies like United Parcel Service (NYSE: UPS) and FedEX (NYSE: FDX) are gradually electrifying their fleets. In April, EV maker Arrival (NASDAQ: ARVL) delivered its first prototype electric van to UPS.
The electric vehicle sector is certainly an exciting place to watch out for in the years to come. But investors have to note that we’re still in the early innings. With the recent comeback of the EV sector, investors are starting to wonder if that optimism could extend throughout 2021. Considering all these, should investors put up a list of top electric vehicle stocks to buy in the stock market today?
Top Electric Vehicle Stocks To Watch Now
- ChargePoint Holdings (NYSE: CHPT)
- Tesla Inc (NASDAQ: TSLA)
- Churchill Capital Corp IV (NYSE: CCIV)
- Ford Motors (NYSE: F)
- General Motors (NYSE: GM)
ChargePoint Holdings
If you’re looking for pick-and-shovel plays in the EV space, ChargePoint deserves a closer look. That’s because the EV charging station company is highly likely to benefit from the mass adoption of EVs, no matter who takes the crown in terms of EV sales.
The company reported its first-quarter results after Thursday’s closing bell. In it, revenues came in 24% higher year-over-year to $32.8 million. Networked charging revenue for the quarter came in 36% higher year-over-year to $26.8 million.
With the company’s large market share in the EV charging networks and a comprehensive portfolio of charging solutions available today, it’s not hard to project that the company’s revenue would grow significantly over time as more EVs appear on the road. If the exponential growth projection by BloombergNEF with an estimate of 54 million electric vehicles by 2040 materializes, should you load up on CHPT stock now?
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Tesla
No list of top electric vehicle stocks to watch is complete without Tesla in it. While considerable attention has been on Tesla’s involvement with Bitcoin recently, making electric vehicles is the story investors should be focusing on. From its most recent quarter, Tesla’s revenue came in 76% higher year-over-year. Deliveries are up 109% while first-quarter orders were the strongest in the company’s history. Simply put, Tesla is firing on all cylinders. But as of late, the bearish stance on TSLA stock seems to have gotten stronger.
It is not the first day there are short-sellers targeting TSLA stock. However, Michael Burry, one of the first investors to call and profit from the subprime mortgage crisis, placed a $530 million bet against Tesla. And that has led many investors to take a more serious look this time.
This time, Burry warned investors that Tesla’s reliance on regulatory credits to generate profits is a red flag. Burry proved many wrong with the mortgage crisis while Musk burnt many short-sellers over the past few years. Is now the time for the shorts to shine? Or would you buy TSLA stock on its recent weakness?
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Churchill Capital Corp. IV
Churchill Capital Corp. IV is a special purpose acquisition company (SPAC) that is merging with Lucid Motors. If you are looking for a strong contender to compete against Tesla, Lucid Motors seems like a good fit for this role. As the company has amassed an impressive engineering and design team to create a new class of premium EVs, it’s worth giving CCIV stock a shot. The new EV startup commands a world-class technology platform that could possibly compete head-to-head with the EV king, if not better.
That’s not to say Tesla stock is not worth the investment. What I’m trying to say is, it’s time to have a closer look at companies that could potentially eat away Tesla’s market share. While CCIV stock did not have a good ride like its competitors in the market, its valuation and technology make it worth a closer study.
Of course, at around $23 apiece, the stock is still more than double the SPAC’s IPO price. While no one can be sure if it can ever go back to its previous high again, would it be compelling to buy CCIV stock considering the strong potential it has?
Ford Motors
Should you have been paying attention to the space, you would know Ford is probably the best performing EV stock as of late. The company’s recent effort to increase its EV investments to $30 billion by 2025 is huge news for the company and the industry as a whole.
More importantly, the legacy automaker also said on Thursday that its U.S. sales came in 4.1% higher in May from a year ago. But the most recent rally of F stock price has to do with the upcoming launch of its new small pickup truck, the Maverick, next week. The Maverick is a so-called “white space” product, filling a market segment that Ford hasn’t previously contested.
Ford earlier this year officially debuted its latest electric pickup truck, the F-150 Lightning. This is the second mass-market EV from Ford, following the Mustang Mach-E. The company received more than 44,500 reservations in under 48 hours, according to a tweet by CEO Jim Farley. This could be a sign of greater things ahead. After all, the model is one of the most powerful F-150s ever made. The company also recently joined forces with BMW to invest in solid-state battery startup Solid Power. Considering all these developments, is F stock an EV stock to buy in the stock market today?
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General Motors
Another traditional automaker trending lately is General Motors. The company’s stock price had another boost this week after raising the profit outlook. If anything, this indicates that GM is achieving greater ability in acquiring chips and allocating them among its model lines.
The Detroit automaker also expects first-half profit to be “significantly better” than previously forecast. This is due to the success of shifting scarce semiconductors to boost the production of highly profitable trucks in the North American market.
Like Ford, General Motors also has an impressive lineup of EVs. The company’s Chevrolet Bolt and Chevrolet Volt are among the best-selling EVs in the US. And one major reason they are selling better is because both of the models are much more affordable compared to Tesla’s models. With the improving situation in chip supplies, wouldn’t it make sense to load up on GM stock right now?