Should Investors Be Watching These Top EV Stocks Right Now? 3 To Consider
Electric Vehicle (EV) stocks were amongst the shining stars on the stock market in 2020. Evidently, we have seen explosive growth from some of the top electric vehicle stocks this year. We only need to look at the likes of Workhorse (WKHS Stock Report) with gains of over 500% in the past year. For one thing, the utility EV giant’s performance shows the growing demand for clean energy on the industrial end. Chinese EV manufacturer XPeng (XPEV Stock Report) is another beneficiary of the rising demand for electric vehicles as well. With the EV industry ending 2020 on a high, I would not be surprised if it kept up its momentum this year as well.
The International Energy Agency seems to think so as well. It predicted that EV’s would account for 30% of global car sales by 2030. To put things in perspective, that figure was 2.6% in 2019. With such impressive projections, investors would definitely be keeping an eye on the industry. Aside from just numbers, we have yet to cover another potential long-term growth factor for EV’s. That is the inauguration of Joe Biden as president of the U.S.A. Biden’s administration has goals for a carbon-neutral nation by 2050 and a proposed $1.7 trillion in investments to back it up over the next ten years. All things considered, I can understand why auto investors are excited in 2021.
However, there was a recent dip amongst the top players as 2020 came to end. If anything, this shows the volatility of the EV industry. Could it buy a good time to buy on the dip? I’ll let you decide. To help with that, here is a list of the top EV stocks that just reported their delivery numbers.
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Best EV Stocks To Watch Right Now
- Nio (NIO Stock Report)
- Li Auto (LI Stock Report)
- Tesla (TSLA Stock Report)
Best EV Stocks To Watch This Week: Nio Inc
Any seasoned auto investor will likely have heard of Nio (NYSE:NIO). It is undoubtedly one of the best EV stocks in the stock market today. This is in light of NIO stock having surged by over 1200% in the past year. For some context, Nio is a market leader in China’s EV market. It designs, manufactures, and innovates in the field of EV’s and related EV technology. These include artificial intelligence and autonomous driving components. Looking at its current momentum, investors would be curious to see if NIO stock still has room to grow this year.
One positive sign would be Nio’s recent performance in its third-quarter fiscal released in November. In it, the company saw a 146% year-over-year increase in total revenue. Nio also saw an 1870% jump in cash on hand which added up to over $19.3 billion by the end of the quarter. The company cites its record-high quarterly deliveries of over 12,000 cars as a key contributor to its performance. CEO William Bin Li said, “In view of the growing market demand for our competitive products, we are motivated to continuously elevate the production capacity to the next level.”
Accordingly, the company also released its fourth-quarter and full-year 2020 update on delivery figures yesterday. Investors will be pleased to hear that the company delivered 17,353 vehicles over the quarter, beating management’s estimates of 16,500 to 17,000 vehicles. This marked a 111% year-over-year increase. Logically, this shows that consumers are hungry for what the company is offering. Do you think NIO stock will benefit from this rising demand in the months to come?
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Best EV Stocks To Watch This Week: Li Auto Inc
Next up, we will be looking at another Chinese EV company, Li Auto (NASDAQ: LI). Interestingly, China’s largest consumer services app Bytedance, which owns TikTok is a benefactor to the company. Li Auto focuses on manufacturing plug-in hybrid vehicles that run on both gasoline and/or electricity. The versatility of its automobiles does provide a level of convenience that most of its rivals’ EVs cannot boast. Unsurprisingly, Li Auto raised $1.1 billion in its IPO back on July 30. Since then, it is looking at gains of over 70%. Given the massive three-digit rallies seen by its peers, you may be wondering if it is a good time to buy-in.
In its third-quarter fiscal, the company brought in $386 million in total revenue. Furthermore, it ended the quarter with over $1 billion in cash on hand. CEO Xiang Li said, “This is our first quarterly earnings release as a public company, and we are pleased to announce robust third-quarter results reflecting not only our strong growth momentum driven by the outstanding value proposition of our products, but also our relentless pursuit of operating efficiencies.” With the Chinese EV market being hotter than ever, this upcoming EV company would definitely be on investors’ radars. Nevertheless, the company faces impressive rivals in the same place, investors may be concerned if Li Auto can keep up.
On January 1, Li Auto posted its December 2020 delivery update and helped to ease some of the aforementioned concerns. The company delivered a record 6,126 units throughout the month. This marked a 529% year-over-year increase according to the company. Should Li Auto continue its sales momentum, shareholders of LI stock could be in for an exciting 2021. Would you say the same?
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Best EV Stocks To Watch This Week: Tesla Inc
Tesla (NASDAQ: TSLA) is an EV company that needs no introduction. One thing to consider is its industry-leading line of EVs and home-based renewable energy offerings. Naturally, the company stands to benefit a whole lot from both tailwinds in the EV and renewable energy industries. Similarly, TSLA stock has reflected the company’s wins from this perfect storm at gains of over 675% in the past year. Even with its high valuation of $700 a share, investors are still flocking to TSLA stock. Makes you wonder what the company has up its sleeves, doesn’t it?
In Tesla’s recent quarter fiscal posted in October, it brought in $8.77 billion in total revenue. This added up to a 39% year-over-year increase. Moreover, the company also saw a 68% jump in earnings per share. All this coupled with Tesla’s $14.5 billion in cash on hand by the end of the quarter paints a great picture for the EV giant moving forward.
Adding to that, the company also reported its full-year 2020 vehicle and production delivery figures. As expected investors were thrilled when Tesla reported that it sold 499,550 vehicles throughout the year. Considering that the company’s goal was half a million, Tesla said that its delivery figures tend to be “slightly conservative” suggesting leeway of about 0.5%. All in all, the company sees it as a total win regardless. At the same time, Tesla also announced that production for its Model Y has begun in Shanghai. It seems to me that Tesla is firing on all cylinders as we kick-off the year. Do you think TSLA stock could see new highs in the months to come?
