In the fast-growing electric vehicle market, apart from Tesla, there are a number of companies worthy of investor attention. Interest is growing amid both Tesla’s success and expectations of stimulus from the US government.
2020 was the best year for EV stocks as investors poured into Tesla’s (TSLA) rivals, electric car sharing companies, electric bus makers, gas stations, software makers and other industry startups, amid the success of Tesla’s (TSLA).
In a challenging year of the pandemic, electric vehicle stocks surged even higher than the biotech sector, outperforming all other market sectors. Proof of this is the growth of the Global X Autonomous & Electric Vehicles ETF (DRIV) Index Fund by 75.3% over the past 12 months and by 13.6% since the beginning of 2021.
A report from research service Bloomberg New Energy Finance (BNEF), which provides analysis, data and news on transformations in the energy sector, showed that investments in renewable energy reached $ 303.5 billion, up 2% from last year. mainly due to the largest construction of solar projects in history, as well as the emergence of wind turbines worth $ 50 billion. At the same time, the first place in investment was taken by the electric vehicle sector.
Thus, investments in the creation of charging infrastructure in 2020 amounted to $ 139 billion, which is 28% higher than last year’s figures. The passenger electric vehicle market, in turn, showed a fourfold growth compared to the level of 2016.
With Joe Biden in the White House and a Democratic majority in Congress, electric car companies could be among the biggest beneficiaries of the new government.
Biden has pledged to install 500,000 charging stations, a number that analysts say could boost sales of 25 million electric vehicles, or 25 times more than Tesla expects to sell in 2021. For more information on Tesla’s plans, see Marketinfo.pro, “Tesla Didn’t Reach Q4 Profit Estimates But Surpassed Revenue Growth.”
Tesla’s direct competitors include both automakers with a long history and startups whose shares are of interest to investors due to their price.
While General Motors (GM), BMW, Volkswagen, Nissan, and other traditional carmakers have clear motives for switching to electric vehicles in their product lines – following demand and new environmental standards, for the smartphone and online services manufacturer Apple (AAPL) – this is a completely new business.
Apple worked on the Apple Car project a few years ago, but ultimately abandoned the idea. Today, with huge investment capital and the love of consumers around the world, Apple can succeed with a strong partnership in the automotive industry.
Nio, Li Auto and Xpeng
One of the strong competitors, especially in the Chinese car market, looks like the company Nio (NIO), however, the growth of its shares in 1267% causes controversial estimates and recommendations of market experts.
Other Chinese electric vehicle makers Xpeng Motors (XPEV) and Li Auto (LI) have a smaller range and significantly more modest shipments than Nio, but their shares are not yet that expensive. Newcomers Xpeng Motors and Li Auto were up 152% and 67.7%, respectively, in the last quarter.
Li Auto received funding from Chinese giants Meituan and Bytedance and is now valued at nearly $ 30 billion.
Xpeng, in turn, has raised over $ 500 million from companies such as Aspex, Coatue, Hillhouse Capital and Sequoia Capital China, as well as $ 400 million from Alibaba, Qatar Investment Authority and Abu Dhabi’s sovereign wealth fund Mubadala.
For more information on the number of shipments and the range, see the article “Chinese Electric Vehicle Startups Nio, Li Auto and Xpeng Report Increased Supply”.
Electra Meccanica Vehicles
Canadian company Electra Meccanica Vehicles (SOLO) has attracted a lot of attention in 2020, which is accepting pre-orders for its Solo single-seater electric vehicle for about $ 18,500.
The company’s assembly plant and technical center were established in Arizona and Tennessee. In addition, Electra Meccanica now has pre-orders for the two-seater Tofino and eRoadster models.
The company is also targeting Europe and Southeast Asia in a few years. Electra Meccanica shares up 274% over the past year
Electric truck and bus manufacturers
Workhorse Group (WKHS) shares are up 1,026% in the past 12 months as the company is seen as a leader in electric medium-duty trucks, for which the market is huge. More than 350,000 of these delivery trucks are sold annually in the United States. With an average selling price of $ 50,000, the market is valued at about $ 18 billion.
Workhorse also develops HorseFly drones for delivery services, energy efficiency and routing optimization systems, and even electric aircraft.
GreenPower Motor of Canada produces all-electric buses in a variety of configurations, including double-decker and school buses. GreenPower’s primary manufacturing facility is located in Porterville, California and is primarily focused on the North American market.
GreenPower Motor’s share price skyrocketed from $ 2.03 to an annual high of $ 28.45. This means that since the beginning of the year, investors have received a 1300% return. And as this sector is just picking up steam, GreenPower has a lot of room to grow.
The NFI Group is another of Canada’s leading manufacturers of electric buses of various capacities, with production at five locations in the United States. Aside from the increasingly positive financial statements, it is also one of the few companies that actually pays dividends to their investors.
The acquisition of NFI Group shares gives investors the opportunity to access this fast-growing industry while the shares are still cheap.
Car sharing companies Uber, Lyft, Facedrive
Uber and Lyft, two of the biggest taxi players, were hit by the pandemic, but are aiming to grow their food delivery business, announcing their intentions to move to a fleet of electric vehicles by 2030.
Facedrive, on the other hand, became the first electric fleet company in the vehicle sharing business in 2019 and is rapidly moving towards expansion in North America.
The Facedrive model is built on a subscription app and works not only in travel services, but also in food delivery, e-commerce and medical technology.
Other promotions of electric vehicles
STEER offers limited autonomous features to assist drivers in detecting road obstacles and prohibition signs, and to monitor vehicle entry and exit from parking.
In addition to ordinary consumers, the company offers its partnerships to business owners, property managers, infrastructure facilities, and smart home companies.
Blink Charging (BLNK) is a market leader in EV charging equipment with over 23,000 charging stations.
The Blink Network uses proprietary cloud-based software that manages, maintains and monitors grid-connected EV charging stations and associated charging data. With a forecast that global purchases of electric vehicles will grow to 10 million vehicles by 2025 from about 2 million in 2019.
Blink Charging posted a meteoric rise of 2,093% in 52 weeks, making it one of the most popular stocks in the EV space.
Buying shares in AutoCanada, a car dealer covering the Canadian and US markets, is another way to indirectly invest in the booming electric vehicle industry. AutoCanada offers a wide variety of new and used vehicles and offers all kinds of financial options to meet the needs of any consumer.
Although sales have dropped this year due to the COVID-19 pandemic, AutoCanada is likely to see a return to growth as purchasing power and demand for electric vehicles pick up.
Westport Fuel Systems helps create the tools automakers need to use less harmful fuels like natural gas. Although natural gas does not attract the attention of electric vehicles, more than 22.5 million natural gas vehicles are used on the roads around the world. This market is expected to grow as the energy transition actually begins.
Magna International is today one of the leaders in the production of mobile technologies for car manufacturers, which actively invests in AI and automation of the 5th level. The 63-year-old Canadian company provides technology to automakers of all types and has already struck deals with GM, Ford, BMW and Tesla.