3 Electric Vehicle Stocks Pushing the Envelope

electric car stocks - 3 Electric Vehicle Stocks Pushing the Envelope

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Interest in electric vehicles, as well as electric car stocks, shows no signs of slowing down.

In fact, EV sales are only likely to speed up.

All as the world gears up for a big surge in sales by 2021, says Carin Energy Research Advisers. The firm sees global sales jumping 36% to 3 million vehicles for the first time.

“There’s pent-up demand for electric vehicles,” said Sam Jaffe, managing director of Cairn Energy Research Advisors. “We will see a combination of factors make 2021 an inflection point for the sale of electric vehicles.”

The analyst sees the biggest growth happening in Europe, as governments push to lower carbon dioxide emissions. France, for example, wants to become Europe’s top producer of clean vehicles, says CNBC contributor Phil LeBeau.

According to a new study from the Boston Consulting Group, by 2025 EVs could account for a third of all auto sales. By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%. By 2040, electric cars will make up 58% of the light vehicle market.

And it’s not just cars, according to Elena Belavina, an assistant professor at Cornell’s School of Hotel Administration.

“To achieve significant adoption, commercial operators as well as households need to transition. Commercial operators have fewer vehicles that are used more often, while individuals own most vehicles. Technological advances that extend the driving range and reduce charge times, widespread availability of charging points and policies that reward EVs for their lower carbon impact are all important ingredients in this transition.”

With the EV boom just getting under way, it’s creating big opportunity for these three electric car stocks:

  • Tesla (NASDAQ:TSLA)
  • Nio (NYSE:NIO)
  • Workhorse Group (NASDAQ:WHKS)

Electric Car Stocks: Tesla (TSLA)

tsla electric car stocks
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The last time I weighed in on Tesla, the EV stock traded at $717 a share before the 5:1 split. Now the stock sits at $430 and could easily run well above $1,000 again soon. In fact, there are plenty of catalysts that can help make that happen.

For one, electric vehicle demand is through the roof. At the moment, the company pledges to deliver 35% more vehicles in 2020. Analysts are just as bullish, with Wedbush’s Dan Ives calling for $1,000 a share, seeing “clear momentum around global EV demand inflection heading into 2020 and beyond, with Tesla leading the charge.”

And it has name cachet. “For individual vehicle owners, in addition, building high status EV brands is key,” Belavina says. “Vehicle owners often purchase vehicles to display social status or wealth rather than for meeting their basic needs. Tesla’s success is perhaps in large part to its status value rather than for economic or environmental reasons. The brand established itself not only as having a warm green glow associated with driving an electric vehicle; it also captured the fascination of the public with its modern design and refined technology capabilities.

Two, Tesla is nearing a major catalyst on Sept. 22. That’s when the company will unveil a new battery that could last for up to a million miles.

“The million-mile battery could profoundly change the business model of electric vehicle manufacturing, analysts say. It also offers Tesla the means to significantly reduce the cost of making electric vehicles. Plus, the cost of owning its cars also could come down, providing Tesla with a huge competitive advantage,” reports Investors Business Daily contributor Brian Deagon.

Nio (NIO)

nio electric car stocks
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The last time I weighed in on the Nio stock, I noted, “While a good deal of optimism has been priced in, we could see further upside. That is, if the company can continue its string of solid monthly delivery numbers.”

That was on Aug. 24, as the NIO stock traded at $13. It’s now up to $19.30 and could easily run well above $20 a share on strong growth.

For August 2020, NIO delivered 3,965 vehicles, which was a year-over-year increase of 104%. That was also a 12.2% jump from the previous month. Cumulative deliveries, says the company, were up to 21,667 for the year, an increase of about 110% year-over-year.

“In August, we achieved our best-ever monthly performance on both deliveries and order growth,” CEO William Bin Li said in a statement. “As we continue to improve the production capacity for all Nio products, our monthly capacity will reach 5,000 units in September to support our future deliveries.”

Workhorse Group (WKHS)

Image of a Workhorse (WKHS) logo and drone on the side of a truck.
Source: Photo from WorkHorse.com

When I last mentioned Workhorse Group, the stock traded at a low of $17.03. That was on Aug. 26. Nowadays, the WKHS stock is up to $27.50 and rocketing higher.

For one, the company recently announced a contract with Ryder (NYSE:R), which will begin using C-Series Workhorse all-electric steam vans. And two, there is a possibility Workhorse Group could win part of a $6.3 billion contract with the U.S. Postal Service.

If that were to happen, it’d be a very big deal. After all, according to Fox Business contributor Gary Gastelu, the Postal Service plans to purchase 180,000 vehicles at a total cost of about $6.3 billion over five to seven years.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/3-electric-vehicle-stocks-pushing-the-envelope-tsla-nio-wkhs/.

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