The electric vehicle (EV) market is heating up again as companies expand their electrified options. EV makers generally offer sedans, station wagons, sports cars and similar car body styles. But several EV giants, along with traditional automakers, are turning their attention toward heavy- and light-duty electric pickup trucks. As they move into this new market, expect EV stocks to soar.
SUVs and trucks are popular, and offering electric versions of them is key to combating climate change in countries such as the U.S. Pickup trucks are an integral part of “American living” for some and automakers cannot risk alienating these customers. As truck buyers consider making the switch to EVs, performance and long-term cost savings will prove critical to the success of electric pickup trucks.
Several EV companies have thrown their hats into the proverbial electric pickup truck ring. These include well-known EV and automobile manufacturers as well as new startups focused on the electric pickup truck niche. As companies expand their electric pickup truck options, these seven EV stocks could benefit from a subsequent boom:
- Hyliion Holdings (NYSE:HYLN)
- Ford Motor (NYSE:F)
- Lordstown Motors Group (NASDAQ:RIDE)
- General Motors (NYSE:GM)
- Arrival (NASDAQ:ARVL)
- ChargePoint Holdings (NYSE:CHPT)
- TPG Pace Beneficial Finance Corp. (NYSE:TPGY)
EV Stocks: Hyliion Holdings (HYLN)
Hyliion Holdings generally focuses on Class 8 trucks, but it also plans to be a disruptor in the electric pickup business. With its current technology, it offers existing truck owners a cheaper option compared to Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA).
Hyliion essentially provides a hybrid solution for Class 8 trucks that involves electric powertrains. The technology significantly improves a truck’s fuel efficiency.
Moreover, the company will be launching the Hypertruck Electric Range Extender (ERX). This fully-electric powertrain uses an on-board generator to produce energy from natural gas or hydrogen. The company expects to begin production of the Hypertruck in 2022.
Hyliion’s management claims their powertrain solution has a payback period of a couple of years. Additionally, trucks fitted with Hyliion’s powertrain can utilize the existing fuel infrastructure operating in the country.
The company expects to earn revenues by the second half of this year and has more than $470 million in its cash until then. HYLN stock has excellent potential to carve out a sizeable market share in its niche.
Ford Motor (F)
Ford is one of the most globally recognizable automotive companies and is clearly not a pure-play EV stock. However, in the past few years, it has invested heavily in the sector to remain competitive in the era of smart vehicles and clean energy.
The automobile manufacturer currently offers two fully electric vehicles: the Mustang Mach-E and the F-150 Lighting pickup truck. Ford also has several plug-in hybrid vehicles that round out its incredible EV portfolio.
Sales of electrified vehicles were up a healthy 117% in June for Ford. Despite production constraints, sale numbers of the Mustang Mach-E have been rising at a healthy pace.
The F-150 Lightning will hit markets next year and should boost F stock considerably. The standard model comes with a 230-mile range and the extended version comes with a 300-mile range. The vehicle’s price starts just below $40,000.
With strong sales and a new electric pickup truck, there’s plenty to look forward to with Ford’s EV endeavors this year and beyond.
EV Stocks: Lordstown Motors Group (RIDE)
Lordstown Motors is the company behind the Endurance EV pickup truck. The company, which specializes in electric work vehicles, claims the truck is the “world’s first all electric commercial pickup.”
RIDE stock has had a rocky few months to say the least. It has been at the center of multiple controversies, including fake orders and allegations that Lordstown Motors misled investors. But despite all odds, testing for its pickup truck is on track and it’s still on schedule to begin production in September.
The Endurance truck has several unique features that make it an exciting addition to the market. It uses a motor at each wheel to generate a combined 600 horsepower and an all-wheel-drive system. Additionally, there is a 7,500-pound towing capacity, and Lordstown estimates the truck’s range to be 250 miles.
Liquidity is a major concern, but Rich Schmidt, the company president, believes the startup has enough cash to fund production through May 2022. It could also qualify for an Advanced Technology Vehicles Manufacturing (ATVM) Loan after its internal investigations come to a close.
General Motors (GM)
General Motors wants to be a leader in the EV realm. It has plans to launch 30 new EVs by 2025.
The majority of these cars will be based on its Ultium platform, which can accommodate a wide range of vehicle types. The platform will enable GM to cut down its development time and achieve its goal of delivering more than one million EVs by 2025.
The electric versions of the company’s flagship Chevy Silverado and Hummer will put the Ultium platform’s capabilities to the test. The company is targeting a 400-mile range for the Silverado and at least a 350-mile range for the Hummer.
GM sold nearly 600,000 Silverados in the U.S. in 2020. That’s more trucks than Tesla’s global volume. GM stock will benefit immensely from its EV plans, but the company needs to keep hitting its targets to keep pushing its bull case.
EV Stocks: Arrival (ARVL)
U.K.-based Arrival, an EV company focused on ridesharing, was listed on the stock exchange through a SPAC merger in March. Since then, it has been developing low-cost micro-factories to build its electric delivery vans, buses and cars for ride-hailing services.
The company’s unique business model can have significant margin and cost benefits for the company. As a result, ARVL shares can easily ride the pickup truck wave in EV stocks.
Another unique element of Arrival is that customers can have the vehicles tailor-made according to their desired configurations. For instance, its bus could be configured to different heights or lengths to accommodate streets of varying sizes.
Additionally, the company is planning to have four of its models in the market by the close of 2023. If it can hit its targets in the coming months, ARVL stock will garner a lot of interest from EV investors.
ChargePoint Holdings (CHPT)
The rise of EVs has increased demand for vehicle charging infrastructure, thereby making related stocks a lucrative bet. ChargePoint has more than 135,000 charging ports in the U.S, making it the largest EV charging station company in the country.
Forward revenue growth estimates are a whopping 34.7% for ChargePoint, which is a testament to the company’s growth runway. Additionally, CHPT stock has gained an incredible 125% in the past 12 months.
ChargePoint generated $146.5 million in 2020 compared to $144.5 million in 2019. The result is impressive considering the pandemic led to significantly fewer cars on the road last year.
Moreover, the company has been expanding its market share outside the U.S. by tapping into the European market. ChargePoint is in pole position to generate healthy revenues regardless of which EV rules the roost in the coming years.
EV Stocks: TPG Pace Beneficial Finance Corp. (TPGY)
TPG Pace Beneficial is a shell company that is merging with Netherlands-based electric charging company EVBox Group.
EVBox is a leading EV charging network provider in Europe and has sold more than 235,000 stations to date. Additionally, it is also expanding in the U.S. market and plans to see its EBITDA break even by 2023.
When it’s all said and done, the new entity will have a market capitalization near $1.4 billion, which appears to be a fair entry point. EVBox is expected to generate an incredible $145 million in revenue this year, up 71% from the prior-year period.
With increasing demand for EV charging infrastructure, this merger could make TPGY stock an excellent addition to your portfolio of EV stocks.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
