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4 Top Electric Vehicle Stocks To Consider Buying Right Now
As an investor, you would always be on the lookout for the next big thing, and electric vehicle (EV) stocks are likely on that list. It is no secret that EV stocks have been performing relatively well in the stock market in the past year. As companies update and advance the technology that powers their eco-friendly vehicles, we will likely see an acceleration in their widespread adoption. People are open to the change, as over 80% of prospective car buyers today want an EV.
It is nearly impossible to talk about EVs without mentioning their industry leader, Tesla Inc (NASDAQ: TSLA). Last Friday, the company CEO Elon Musk announced that he will reward any inventor $100 million in prize money to develop ways to remove carbon dioxide from the atmosphere or ocean. Musk has built a reputation as an industrialist focused on environmentalism, turning electric car maker Tesla into the world’s most valuable vehicle company. If you had invested in the company stock a year ago, you would have made over 400% profit today. Tesla is reporting earnings today after the market’s closing bell.
Now, money is starting to pour into clean energy from all corners. The energy transition emerges as a wildly lucrative opportunity rather than simply a threat to the oil and gas industry. Energy transition investment topped half a trillion, and this could well just be the starting point. BloombergNEF says clean energy investment is set to hit $2.6 trillion this decade. Hence with all these in mind, let’s take a look at some of the top electric vehicle stocks in the stock market today.
EV Stocks To Buy [Or Avoid] Before May 2021
- Xpeng Inc (NYSE: XPEV)
- Nio Inc (NYSE: NIO)
- Fisker Inc (NYSE: FSR)
- Blink Charging Co (NASDAQ: BLNK)
Xpeng Inc
First, on the list, we have a China-based EV company, Xpeng. For those new to the EV scene, it is a company that designs, develops, and produces smart electric vehicles (Smart EV). It aims to develop full-stack autonomous driving technology, in-car intelligent operating systems, and core vehicle systems. So, if you believe autonomous driving technology will define the future, XPEV stock could be the one for you. In early April, the company announced its vehicle delivery results. Xpeng achieved quarterly deliveries of 13,340 Smart EVs in the first quarter of 2021, representing a staggering 487% increase year-over-year. This demonstrates its robust growth momentum.
Last week, the company exhibited and started accepting pre-orders for its latest production model, the Xpeng P5. This would be the world’s first production smart EV equipped with automotive-grade LiDAR technology. So what is LiDAR technology?
Simply put, it’s a system that uses laser beams to form 3D images of the surveyed surroundings. Hence, enabling instant mapping of the surroundings. Also, it is noteworthy that the company has set a new record of longest autonomous driving by mass-produced vehicles in China. Considering all these, would you be adding XPEV stock to your portfolio?
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Nio Inc
Next up, we have Nio, the pioneers of EV in China. The company designs, manufactures, and sells autonomous driving EVs. In addition, Nio also provides its users with innovative charging solutions and other user-centric service offerings. The likes of which boast next-generation technologies and artificial intelligence. Earlier this month, Nio gave an update on its vehicle deliveries. The company yet again set a new monthly record by delivering 7,257 vehicles in March. On top of that, the company also announced that it delivered 20,060 vehicles in the first quarter of 2021. This represents a record rise of 423% year-over-year.
Furthermore, the company also reported its fourth-quarter financials last month. Vehicle sales were $946.2 million for the quarter, a 44.7% increase year-over-year. Nio’s total revenue for the quarter was $1.01 billion, a 133.2% increase compared to a year earlier. The company will be announcing its Q1 earnings report on April 29.
During the Shanghai auto show last week, Nio announced a new plan to provide more recharging and battery swap services. It is a three-year plan to add battery swap stations and charging stations in eight provinces in China. In the long run, this would improve the experience of EV users and hence boost its already rising popularity. With these developments, would you agree that NIO stock has a long growth runway ahead?
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Fisker Inc
Electric vehicle startup Fisker is expected to deliver its first product, the Fisker Ocean SUV, in early 2022. Last Tuesday, Bank of America initiated coverage on Fisker with a “buy” rating and a $31 price target. The bank believes that the company is standing out even with heavy competition in the EV space. Just like many other EV companies, the stock has been trading sideways year-to-date. However, most would believe the EV boom is not over and this could merely be a correction in the long run. However, the company is not resting on its laurels. Fisker has plans to make a vehicle that doesn’t fit into an existing segment, like a sedan or SUV.
Earlier this year, the company announced that it will partner with Apple’s (NASDAQ: AAPL) partner Foxconn Technology Group to develop an electric vehicle. Its partnership with Foxconn is pinned in hopes that the collaboration will bring innovative manufacturing.
Company founder Henrik Fisker said in an interview, “The auto industry is very stale … We still talk about adopting the Toyota manufacturing system”. This suggests that the company has a vision for something groundbreaking that would bring EVs to the next level. With that in mind, would you consider investing in FSR stock now?
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Blink Charging Co
Last but not least, we have a leading owner, operator, and provider of EV charging equipment and charging services company, Blink. The company’s principal line of products and services is its charging network known as the “Blink Network”. Every automotive company out there is rushing into the EV scene, eventually, the charging stations become essentials as well. The company stock has risen over 1800% over the past year. Would there still be room for growth? Quite likely I would say, with the company extending its reach around the country as we speak.
Last Tuesday, Blink announced that it has entered into a reseller agreement with ev Transportation Services (evTS), an EV manufacturer that focuses on essential services and urban mobility markets. The agreement calls for evTS to distribute Blink’s EV charging equipment, along with its FireFly ESV essential services vehicle. This partnership would create a new fully-electric EV Roadside Assistance Vehicle solution.
With the adoption of electric vehicles accelerating at an unprecedented rate, it certainly presents an opportunity for companies like Blink. Knowing that, will you be adding BLNK stock to your watchlist?