Tesla Extended Profit Streak As Deliveries Ramp Up; Is TSLA Stock A Buy?
Electric-vehicle stocks are about to pop up on investors’ radar again. This came after Tesla (TSLA Stock Report) extended its profitability in the third quarter and promised global production increases. This shows that the coronavirus pandemic has minimal impact on Musk’s dream to take electric vehicles mainstream. The largest EV maker posted a net profit of $331 million in the three month period ended September 30. Should Tesla achieve another net profit in the coming quarter, it will be the first calendar year of profitability after years of losses. On a side note, Tesla is sending out the first “Full Self-Driving” beta software update to a select group of customers this week, Musk tweeted.
“The thing people don’t understand about Tesla is [the company] is a whole chain of startups,” Musk said. “And then people say, ‘well, you didn’t do that before.’ Yeah, well, we’re doing it now. I think we may have been a bit slower than other startups, but I don’t think we’ve really had anything fail.”– Elon Musk
Electric Vehicle Stocks Could Bring Explosive Potential Gains In The Long-Term
No doubt, electric vehicle stocks have been a boon to the stock market this year. If you are looking for the future of the automotive industry, I suggest maybe it’s time to take a step back and appreciate the progress of the electric vehicle industry for once. The time is right for electric vehicles. Battery improvement means longer ranges, making EVs more practical. Certainly, electric vehicles also have a major green element that’s increasingly a factor as climate change becomes a pressing issue. With so many electric vehicle stocks in the spotlight, do you have these top EV stocks to buy in order to take advantage of the EV boom?
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Top EV Stocks To Buy [Or Sell] Amid EV Boom: General Motors
First, on the list is, General Motors (GM Stock Report) has been making big moves this week because the company is reportedly investing more in electric vehicles. The company’s share price soared more than 15% for the past 5 trading sessions after the automaker said it was investing billions of dollars more than previously disclosed to produce EVs. To top it all off, the company revealed the comeback, Hummer. And this time, it’s all-electric. The vehicle has a 350-mile range, 1,000 horsepower, and up to 11,500-pound-feet of torque. And with a starting price of $80,000, it’s easily twice the cost of a gas-powered pickup.
“We are committed to investing in the U.S., our employees, and our communities,” Barra said in a statement. “These investments underscore the success of our vehicles today, and our vision of an all-electric future.”
General Motors has an impressive lineup of EVs. The company’s Chevrolet Bolt and Chevrolet Volt are among the best selling EVs in the US. Both of the models are much more affordable compared to Tesla’s models. The truck is expected to go into production late next year. GM may be an old dog, but this old dog can certainly learn new tricks.
Top EV Stocks To Buy [Or Sell] Amid EV Boom: Nio Inc
Out of the Chinese EV stocks, the most prominent and successful to date has been Nio (NIO Stock Report). That’s because several factors have been working in NIO’s favor. The company has been increasing production due to its growing order book. Like Tesla, Nio started by first having a sleek electric sports car that captured consumers’ imagination. These days, Nio primarily relies on its SUV models. Most importantly, it has finally started to achieve a positive operating margin this year. The company distinguishes itself from competitors with its BaaS (Battery as a Service) model which allows users to swap batteries in minutes, a first in the industry.
No doubt, Tesla has been the favorite when it comes to EV investors. But considering how much it has risen over the years, you may wonder if it is still the best EV stock for long-term gains. And some believe that younger companies like Nio have larger upside potential. After all, Nio has home-field advantage in China, the world’s largest EV market. Its vehicles are also much more affordable.
According to a recent media report, Nio plans to develop its own autonomous driving chips. The driver behind this project appears to be none other than Nio’s CEO William Li. At a market cap of less than one-tenth of Tesla’s, is NIO stock a dark horse in the making?
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Top EV Stocks To Buy [Or Sell] Amid EV Boom: Xpeng
For investors who want to bet on the migration to clean energy of transportation, chasing sky-high EV stocks need not be the game. For instance, Xpeng (XPEV Stock Report) is one of the top EV stocks to buy this month. Although XPEV is a relatively new company, which went public in August this year, its robust exports and price advantage gives it an upper hand in the current market. XPEV stock gained 5.7% over the past month.
Xpeng saw a 266% increase year-on-year in the third quarter ended September 30 as it delivered 8,578 units. The company reported deliveries of 3,478 vehicles for the month of September, a leap of 145% from the same period last year. As a result, XPEV stock jumped by 10.17%. The increase was also partially due to the positive commentary from a Hong Kong-based analyst at Credit Suisse. And that’s not all, the company also saw the completion of its first batches of the P7 sedan earlier than expected. While some may think that Xpeng is playing second fiddle to Nio, it’s important to note that the Chinese EV market is the largest globally. Let’s not forget that both companies’ models do not compete directly with each other. With the market there for the taking, XPEV stock is certainly worth a closer look.
“Today sees us achieving the 10,000th unit production target earlier than expected. We delivered on our promise to bring high-quality smart EVs to meet our customer demand,” said He Xiaopeng, Chairman and CEO of XPeng at a ceremony in Zhaoqing.
