These EV Stocks Have Been Trending This Month.
Looking at the automotive industry now, electric vehicles (EVs) appear to be the next frontier. As with anything new and future-facing, investors spent most of 2020 flocking towards EV stocks. Whether it is global green initiatives, climate crises, or changing consumer trends, the EV market appears to have a long growth runway ahead. Just last month, Chinese EV player Nio (NYSE: NIO) saw a 689% year-over-year increase in February sales. Elsewhere, even major tech companies are getting into the market themselves. Take Chinese search engine operator and artificial intelligence giant Baidu (NASDAQ: BIDU) for example. It is currently working on developing EVs with automotive manufacturer Geely. With companies and investors eyeing the EV market I can imagine you’d be interested as well.
Is It The Right Time To Invest In EVs?
With many investors trimming pandemic-boosted stocks, several top EV stocks did lose some of this year’s gains. Accordingly, this was due to investors’ fears over rising interest rates at the time. Given the current valuations on the EV market, some investors would be keen to buy on the dip. After all, EV companies will likely continue to pump out EVs to meet current demands regardless. Could the transition towards environmentally-friendly vehicles continue to pick up steam? Your guess is as good as mine. But, if you’re looking to add some EV stocks to your watchlist, here are four in focus now.
Top EV Stocks For Your March Watchlist
- Fisker Inc. (NYSE: FSR)
- Tesla Inc. (NASDAQ: TSLA)
- Xpeng Inc. (NYSE: XPEV)
- General Motors Company (NYSE: GM)
Fisker Inc.
First up, we will be looking at California-based EV company, Fisker. This emerging EV company continues to make waves even amidst the current pullbacks. Evidently, FSR has been on a tear gaining over 12% just this week. To begin with, Fisker provided a business update on Tuesday saying reservations for its Fisker Ocean SUV surpassed the 14,000 mark.
According to Fisker, this is because of rising interest and orders from the fleet market globally. With even the U.S. government looking to transition its fleet towards more green alternatives, Fisker could continue riding this trend. More importantly, it has also been in the news regarding its latest EV development collaboration announced back on February 24. This is because Fisker is partnering with Apple (NASDAQ: AAPL) assembly partner Foxconn.
Namely, Fisker CEO Henrik Fisker posted additional details about Project PEAR, the EV project in question. According to Fisker, the company will be accelerating the project, possibly by bringing more partnerships on board. Furthermore, the company also revealed the price of its latest vehicle to be below $30,000. This would put it at a major discount compared to its competitors on the market now. With a 2023 launch window, we will have to wait to see if Fisker can deliver on this. For now, do you think FSR stock is worth watching?
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Tesla Inc.
It would be tough to talk about EVs without mentioning industry lead, Tesla. Throughout 2020, the company produced and delivered half a million EVs. Booming EV business aside, it also offers several other renewable energy solutions such as solar panels and home grid systems.
Given its current portfolio, Tesla has deep roots in the upcoming renewable energy industry. As such, it would stand to benefit from growing government investments in clean energy tech. For investors, TSLA stock would be a go-to play for jumping into the renewable energy industry now. Evidently, TSLA stock has also skyrocketed by over 400% in the past year.
In terms of how it stands up against its competitors, Cairn Energy Research Advisors (CERA) just released a report on Tesla yesterday. Overall, CERA says that Tesla still has the lead in numerous aspects of its EV business. This includes the current scale of its operations and the company’s battery costs. According to CERA, Tesla pays an average of $142 per Kilowatt-hour (kWh) for battery cells, the best in the industry. Compared to the supposed industry average of $186 per kWh, Tesla would be working with better profit margins. Moving forward, CERA estimates that Tesla could maintain its lead in this aspect for the rest of the current decade. Should this be the case, would TSLA stock be worth watching?
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Xpeng Inc.
Following that, we have Guangzhou-based Chinese EV manufacturer Xpeng. In brief, the company focuses on developing “Smart EVs”. What is Smart EVs? Well, according to Xpeng, they are EVs that are integrated with advanced artificial intelligence and autonomous driving tech. Seeing as Xpeng develops all of this tech in-house, it would have greater control over user experience. For one thing, many would consider Xpeng among the leaders in the booming Chinese EV market now. Notably, XPEV stock is looking at gains of 15% since it’s recent-quarter fiscal was posted earlier on Monday.
Diving right into it, Xpeng reported a massive 302% year-over-year surge in vehicle deliveries in the quarter. Total revenue for the quarter came up to $437 million for the quarter, a mind-blowing 345% increase year-over-year. CEO He Xiaopeng mentioned that the high demand for Xpeng’s second EV offering fueled the company’s robust growth this quarter. Moreover, Xiaopeng mentions that Xpeng will continue to focus on expanding its sales and service network to help empower sustainable future growth. Given its current momentum, could XPEV stock continue to flourish this year? You tell me.
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General Motors Company
Topping off our list is legacy U.S. automotive company, General Motors. With its deep industry experience, the company is actively making the shift towards EVs and autonomous vehicles (AV) which are more environmentally sustainable. Back in January, the company announced plans to be carbon neutral by 2040, which would contribute to President Joe Biden’s plans for the country. At the same time, GM stock continues to grow with gains of over 35% year-to-date. Can the company compete with the newer EV players on the scene now?
If anything, GM is not sitting idly by right now. Last Thursday, GM did mention plans to build a second EV battery factory with South Korean joint-venture partner LG Chem. According to Reuters, the duo is in advanced talks with Tennessee officials to build the plant. By current estimates, the entire project would have the same scope as its $2.3 billion battery plant in Ohio. This lines up with GM’s plans to invest $27 billion in EVs and AVs over the next five years. To this end, will you be adding GM stock to your watchlist?
