- Ford (F): F-150 Lightning pickup truck to be launched on Tuesday could be Ford’s ticket to EV glory.
- Fisker (FSR): The EV startup is expected to make a splash with its Ocean SUV.
- BMW (BMWYY): The electric i7 series sedan promises ultimate luxury experience.
- General Motors (GM): Cadillac Lyriq signals the first step in GM’s big EV push.
- Nissan (NSANY): With the Ariya, the Japanese automaker will seek to replicate the success it had with its Leaf.
- Mercedes-Benz (DDAIF): EQS SUV will mark the company’s first electric SUV to launch in the U.S.
- NIO (NIO): midsize sedan ET5 could give Nio a much-needed volume boost.
The electric vehicle revolution (EV) that was taking shape faced a speed bump amid the Ukraine-Russia war. Input prices are soaring and components are in short supply, disrupting well thought-out production plans. It is against this backdrop that Japanese automaker Toyota (NYSE:TM) confirmed that its first fully-electric SUV, named bZ4X, will go on sale in Japan and the U.S. shortly.
Toyota, the second largest automaker by market value, was a reluctant entrant in the EV arena. For a long time, the company was placing its bets on hybrid vehicles. It was only in October 2021, the automaker sounded out its intent to get into EVs in a big way by announcing a $3.4 billion investment over a period of 10 years.
Later in the same month, Toyota provided details of the bZ, standing for “beyond zero,” lineup of EVs. The Japanese auto giant is joining a crowded arena. Several other traditional automakers and pureplay EV companies have launches planned for the year.
EV adoption will leapfrog in the coming years thanks to three factors — regulation, consumer behavior and technology, according to a McKinsey report. The U.S. and Europe have set new regulatory targets of EVs making up at least 50% of new vehicles sold by 2030. Many countries have accelerated the timelines for banning ICE vehicles to either 2030 or 2035.
Consumers awareness and preferences are changing, as buyers gravitate toward “alternative and sustainable mobility modes.”
Investment into EVs and related industries have increased to over $400 billion over the past decade, McKinsey estimates. Innovations fueled by these investments will help reduce the cost of EV ownership and increase adoption.
|F||Ford Motor Company||$15.08|
|BMWYY||Bayerische Motoren Werke Aktiengesellschaft||$27.76|
|GM||General Motors Company||$39.12|
|NSANY||Nissan Motor Co., Ltd.||$7.92|
|DDAIF||Mercedes-Benz Group AG||$68.37|
EV Stocks to Buy: Ford (F)
Ford (NYSE:F) has a release date for its much-awaited F-150 Lightning EV pickup truck. The company confirmed earlier this month it will begin delivering the first vehicles to customers on April 26. The Lightning is the electrified version of Dearborn’s best-selling F-150 pickup.
In late January, the company stopped taking orders for the truck after it notched up 200,000 reservations. Taking cues from the strong demand, the company has planned to bump up annual production capacity from 40,000 units to 150,000 units. The F-150 Lightning has a starting price of a little less than $40,000 for the base trim and the highest trim has a pricing of a little over $90,000.
Rivian’s (NASDAQ:RIVN) competing vehicle, the R1T, is already on the market. However, the EV startup wasn’t able to capitalize on the early-mover advantage due to production issues. EV market leader Tesla’s (NASDAQ:TSLA) Cybertruck is at least a year away from launch. In the interim, Ford can make merry with a product, which has drawn interest from buyers in the EV as well as pickup truck market.
Los Angeles-based Fisker’s (NYSE:FSR) Ocean SUV is another much-awaited launch of the year. The company is named after its founder Henrik Fisker, a Danish-American automotive designer.
Fisker confirmed in late March its Ocean SUV received 40,000 initial reservations.
The limited output Launch Edition, named the Ocean One and Ocean Extreme are both priced at $68,999. The Ocean Ultra and Ocean Sport variants are relatively cheaper at $49,999 and $37,499. Citing analysis of purchase intentions, the company said it will open preorder reservations for the Fisker Ocean SUV to current reservation holders on July 1.
The company plans to manufacture 5,000 Ocean One vehicles and begin deliveries of these in November. The low-end models may not arrive until late 2023.
If Fisker can deliver its Ocean One by the communicated timeframe, the sagging stock is likely to get a shot in the arm.
EV Stocks to Buy: BMW (BMWYY)
BMW (OTCMKTS:BMWYY) recently announced its electric i7 sedan, marking the first electric version of the 7 series. The sedan, available in two variants, can accelerate from 0 to 60 miles per hour in 4.5 seconds, with 536 horsepower and a range of up to 300 miles.
The BMW i7 is available for preordering with a $1,500 deposit. The first models are slated to arrive in early 2023. It has a starting price of $119,300. The 7 series will join BMW’s two prior EV models, namely the i3 sedan and iX SUV.
The electric i7 sedan will be pitched against Mercedes’ EQS sedan and Porsche’s Taycan in the global markets.
General Motors (GM)
Cadillac, the luxury vehicle unit of GM (NYSE:GM) will make available its all-electric 2023 model Cadillac Lyriq Debut Edition in the summer of 2022. Additional Lyriq models will roll out, starting in the fall of this year. The company indicated that dealers will begin taking orders for the EV starting May 19.
The Lyriq SUV is powered by GM’s Ultium EV platform and is estimated to have a range of over 300 miles. It comes armed with the super cruise driver assistance technology and the battery capacity is 100-kilowatt-hour. At a starting price of $59,999, the EV is being manufactured at the Spring Hill, Tennessee assembly plant.
Cadillac brand’s first-ever EV is another step in GM’s drive toward launching 30 green-energy vehicles by 2025. The Detroit-based will be aiming for a clean launch, especially after the quality issues it faced with its Chevy Bolt EVs.
EV Stocks to Buy: Nissan (NSANY)
Japanese automaker Nissan (OTCMKTS:NSANY), which has found huge success with its Leaf EV, will launch an electric crossover SUV, named Ariya, in the U.S. in the fall of 2022. Reservations for the vehicle are open now. Ariya comes in four variants, namely the Venture+, Evolve+, Premiere and Platinum+.
The Ariya is one of six new EVs the company has planned to further its electrification efforts. It is priced between $38,450 and $51,450, depending on the trim level. All three variants, except the Platinum+, are front-wheel drive. The range of the vehicle varies between 265 miles and 300 miles.
The company has delayed the rollout of the vehicle a couple of times in the past, citing semiconductor shortages.
Mercedes’s (OTCMKTS:DDAIF) EQS is an all-electric compact SUV that can seat up to seven people. It is the SUV version of the company’s flagship EQS EV sedan. The range of the vehicle is expected to be around 333 miles to 410 miles as per WLTP testing.
The EQS will come in two trims, the EQS 450+ SUV and EQS 580 4MATIC SUV. It is expected to go on production at the company’s Tuscaloosa, Alabama plant in the coming months and arrive at dealerships in late 2022. Although the company is yet to confirm the pricing, it is estimated to be priced between $110,000 and $130,000.
There is heightened anticipation for the model, given that it is being designated as Mercedes’ flagship EV SUV and will mark the company’s first SUV to launch in the U.S.
EV Stocks to Buy: Nio (NIO)
Chinese EV startup NIO (NYSE:NIO) already launched a new sedan called ET7 in late March. It hopes to debut at least two more new vehicles this year, provided macroeconomic and geopolitical situations don’t not pour cold water on its plans. This includes a mid-sized sedan named ET5.
Nio debuted the model at the Nio Day 2021 held in December. At that time, the company said deliveries will begin in September. Describing the car, Nio said it “is a perfect blend of NIO’s supercar DNA and technological aesthetics.”
The company expects to debut the ET5 in China this year and subsequently make it available in Sweden and its other overseas markets by the spring of 2023. The ET5 has a starting price of around $51,000, and it will go up against Tesla’s mass market Model 3 vehicle.
The ET5 will likely give Nio’s volume a boost after a not-so-enterprising 2021.
On the date of publication, Shanthi Rexaline 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.