Tesla (NASDAQ:TSLA) had a choppy few months, as the electric vehicle (EV) company saw slipping market share and pricing concerns cut into its share price. The stock is down about 5% over the past month, though shares jumped nearly 10% in the past week. For now, Tesla is undeniably the dominant player among electric EV stocks. Its flagship auto line and vast charging network are top-of-mind for consumers. Brand recognition and general consumer preference will keep the company running for the foreseeable future.
But other EV stocks are jumping on the Tesla bandwagon.
Sometimes, that takes the form of strategic partnerships with Tesla to improve a company’s position within the market. In other instances, it means directly undercutting Tesla. No matter the method, these three EV stocks are ready to spike — with or without Tesla.
ChargePoint Holdings (CHPT)
ChargePoint Holdings (NYSE:CHPT) is one stock surging amid the wider stock market uptick this month. Though shares have fallen more than 60% since January, they’ve shot up 16% in the last five days. The company’s next earnings report won’t hit until early December. Still, other news that reinforces CHPT’s strong position in the competitive EV charging market is bubbling up.
ChargePoint’s biggest news this week was their announcement that their EV charging network passed one million quarterly active drivers. The report also noted that more than two million EV drivers have used a ChargePoint station to recharge their vehicles. With about 3 million total EVs in America today, ChargePoint’s popularity and market penetration point to a strong upside for this EV stock as it accumulates a large national presence.
But ChargePoint is jumping onto the Tesla bandwagon alongside other companies, which will likely lead to huge increases in the company’s total addressable market. Thus far, ChargePoint’s refuel stations are incompatible with Tesla’s charging requirements. But this month, ChargePoint will begin rolling out retrofit kits for existing stations to accommodate Tesla drivers. Tesla represents about half of the total EVs on the road today. This means ChargePoint hit its impressive quarterly user milestone without Tesla EVs. Now that Tesla drivers can jump onto one of more than 30,000 ChargePoint stations, this EV stock is ready to rebound back to previous highs.
LiveWire Group (LVWR)
LiveWire Group (NYSE:LVWR) is known as the “Tesla of motorcycles.” The company went public late last year after spinning off from Harley-Davidson (NYSE:HOG), and its performance has been choppy thus far. But signs point to an imminent revitalization for this EV stock as one of the few electric motorcycle manufacturers in the world.
The company’s sales are strong, bolstered by realigning its price to suit consumer budgets. In the most recent quarter, sales jumped 15% compared to the previous quarter. The company does, concerningly, continue burning cash and operating at a net loss. But the most recent quarter does indicate the company is adapting to market pressure, as it improved its net income by more than $26 million, losing just $14.58 million compared to $40.73 million the previous quarter.
For speculative investors, LiveWire stock could be the next Tesla, capturing an otherwise unaddressed group of EV enthusiasts ready to hit the road.
General Motors (GM)
General Motors (NYSE:GM) directly competes with Tesla. But the legacy auto manufacturer is making inroads via strategic partnerships with Elon Musk. Starting next year, GM owners will be able to charge their EVs on one of Tesla’s many Supercharger stations. Better yet, the company is working directly with Tesla to integrate its connector design into vehicles starting in 2025, increasing national usability and interoperability for drivers.
But GM is also butting heads with Tesla in a big way that could pay off for this EV stock. This week, GM inked a deal with Tooling & Equipment International. The small firm is a private company that’s long worked with Tesla to cast car bodies in a single piece, ultimately saving time and money. The deal snatches the small casting company away from Tesla’s jaws. It also means that GM is now positioned to manufacture its flagship EV series more cheaply and quickly than before. That’s critical in light of labor negotiations driving overall costs higher and represents a massive milestone for GM’s stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
