Electric vehicles are coming to market and coming fast, and EV stocks have been keeping pace.
Legacy automakers and upstart pure-play electric vehicle makers of all sizes are racing to capitalize on the shift from gasoline-powered vehicles to battery-powered cars, trucks and sport utility vehicles (SUVS).
Market research firm Fortune Business Insights forecasts that the worldwide electric vehicle market will be worth $985.72 billion by 2027 for a compound annual growth rate (CAGR) of 17.4% over the next six years. That’s a massive market for auto manufacturers and investors.
In this article, we look at four EV stocks worth adding to a portfolio.
EV Stocks: Blink Charging (BLNK)
Blink Charging isn’t exactly an electric vehicle company, but it is critical to the future of the fast-growing sector.
Blink Charging designs and manufactures the charging stations that are essential to the broad adoption of electric vehicles, not only in the U.S. but also around the world. And the market for electric vehicle charging stations is huge.
Market research firm, MarketsandMarkets.com, forecasts that the global electric vehicle charging station market will grow from 2.12 million units in 2020 to 30.76 million by 2027, for a compound annual growth rate of 46.6%.
Meticulous Research forecasts that the electric vehicle charging station market will be worth $29.7 billion by 2027, for a CAGR of 39.8% between now and then.
Given the huge market, it should come as no surprise that BLNK stock has been getting nothing but love from investors in recent months. The company’s share price has risen more than 50% so far this year to around $52 a share.
Analysts remain extremely bullish on the company and its stock, with a median price target of $63.50 a share and a high price target of $67.00. Blink got a big boost recently after it announced that it had secured a deal to install 140 charging ports and three fast-charging electric vehicle stations in the city of San Antonio.
Now to acknowledge the elephant in the room. It’s difficult to discuss EV stocks without including Tesla.
Not only is Tesla the biggest electric vehicle manufacturer in the world today, but it is also the only company exclusively focused on electric vehicles that is also profitable. Tesla has reported six consecutive profitable quarters.
TSLA stock seems to be largely bulletproof at this point. The company’s stock defied short-sellers who have been screaming for years that it is overvalued and due for a correction. In fact, recent news that the company is recalling. 135,000 vehicles for faulty touchscreen displays and rearview cameras moved the share price less than expected.
Investors seem willing to look past any issues with Tesla and instead focus on the company’s increasingly diverse line-up of vehicles, including its “Cybertruck” SUV, a Roadster racing car, and even an all-electric semi-truck.
News that Tesla is now able to sell its Model Y SUV in China was widely cheered by investors. TSLA stock is up 17% year-to-date in 2021 and is currently hovering around $8oo a share.
Webush recently upgraded its price target on Tesla stock to a street high of $950 a share.
EV Stocks: General Motors (GM)
General Motors is so committed to electric vehicles the company recently redesigned its logo to make the “m” look like an electric plug.
The Detroit-based automaker has announced that the majority of the vehicles it produces will be electric by 2035, and the entire company will be carbon neutral by 2040.
By the end of 2025, 40% of GM’s U.S. models will be battery electric vehicles. The company plans to include crossovers, SUVs, sedans and trucks in its future electric vehicle lineup.
Wall Street has been applauding GM’s electric shift under company Chief Executive Officer Mary Barra. After years of stagnation, GM stock is up 40% since the start of this year and is trading just under its 52-week high of $57.05 a share.
The company is already beginning to plan for a new line of electric, self-driving cars, having announced a new partnership with Microsoft to develop cloud-based autonomous vehicle technology. The reinvention of the iconic General Motors is in full swing.
If any company can give Tesla a run for its money, it’s Chinese electric vehicle maker Nio.
The company, which has the full support of the Chinese government in Beijing behind it, announced that it delivered 7,225 vehicles in January, more than four times the 1,598 cars it delivered during the same month of 2020.
The January figures mark Nio’s sixth-straight month of record-high deliveries, bringing the start-up’s cumulative deliveries to 82,866 since last August. The company’s financials have also been strengthening.
Nio’s share price has been a strong performer to start the year, up more than 20%. The stock has been steadily outperforming the S&P 500, which is up 4.38% year-to-date.
NIO stock recently got a big boost after media reports that the Chinese automaker is planning to enter the U.S. market and challenge Tesla on its home turf. Whether that rumor comes to fruition remains to be seen, but it serves to underscore the excitement investors have concerning Nio and its future prospects in the electric vehicle market.
On the date of publication, Joel Baglole held a long position in TSLA.