- 8 Electric Vehicle Stocks That Are More Than Just a Fad
- Electric Vehicle Stocks: Xpeng (XPEV)
- Plug Power (PLUG)
- Electric Vehicle Stocks: Tesla (TSLA)
- Hyliion Holdings (HYLN)
- Electric Vehicle Stocks: Lordstown Motors (RIDE)
- ElectraMeccanica Vehicles (SOLO)
- Electric Vehicle Stocks: Fisker (FSR)
- CIIG Merger (CIIC)
- February 2021 Stock Market Outlook
- Covid Remains the Most Important Factor for Markets
- Market Could Take a Breather as Washington Sorts Out Policy Goals
- The Market Outlook for the Remainder of 2021
- Elon Musk, the world’s richest man, is about to get a whole lot richer
- Did Musk really need any more options?
- Cost to Tesla of the options
- 11 Electric Car Stocks to Watch in 2021
- #1 Tesla Inc. (NASDAQ: TSLA)
- #2 Blink Charging Co. (NASDAQ: BLNK)
- #3 Fisker Inc. (NYSE: FSR)
- #4 Arcimoto Inc. (NASDAQ: FUV)
- #5 Workhorse Group Inc. (NASDAQ: WKHS)
- #6 General Motors Co. (NYSE: GM)
- #7 Nio Inc. (NYSE: NIO)
- #8 Li Auto Inc. (NASDAQ: LI)
- #9 Xpeng Inc. (NYSE: XPEV)
- #10 Kandi Technologies (NASDAQ: KNDI)
- #11 ElectraMeccanica (NASDAQ: SOLO)
- Albemarle Corp. (NYSE: ALB)
- Sociedad Quimica y Minera de Chile (NYSE: SQM)
- Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
8 Electric Vehicle Stocks That Are More Than Just a Fad
When we invest and do so with smarts, we scrutinize the numbers. But beyond those that individual companies report, we must embrace sector-centric statistics. And when it comes to electric vehicle stocks, the data speaks volumes.
Electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase from 2018. That’s according to a June 2020 report from the non-profit International Energy Agency.
So what did 2020 hold? The overall EV numbers aren’t quite tabulated. But it’s bound to be an increase worthy of a 1.21 gigawatt electric jolt to a hopped up DeLorean. (Remember Back to the Future?) And as for 2021, expect the EV numbers to climb up, up, up – in terms of vehicles made, technologies upgraded and investments ready to zip, zip, zip.
A word of caution: Burgeoning sectors, much the gold rushes of old, invite their share of charlatans, also-rans and salesmen of snake oil (or, I suppose, snake lithium-ion). So I’ve taken care to weed such companies out. Dishonorable mention here goes to Nikola Corp.
(NASDAQ:NKLA). It fooled investors by filming a hollow EV rolling downhill and called it the real thing. Also beware of QuantumScape (NYSE:QS).
It’s now the target of multiple class-action lawsuits for allegedly overstating its progress on making vehicle-ready solid state batteries.
Ah, but then we have winners ushering in the age of EVs and alternative vehicle fuel sources. My picks for eight electric vehicle stocks to watch (and buy) are:
- Xpeng (NYSE:XPEV)
- Plug Power (NASDAQ:PLUG)
- Tesla (NASDAQ:TSLA)
- Hyliion Holdings (NYSE:HYLN)
- Lordstown Motors (NASDAQ:RIDE)
- ElectraMeccanica Vehicles (NASDAQ:SOLO)
- CIIG Merger (NASDAQ:CIIC)
- Fisker (NYSE:FSR)
One more thing: After less than a month in office, President Joe Biden has already sent clear signals on the trajectory of his transport and energy policies.
Killing the Keystone XL pipeline and freezing new drilling on federal lands sent two more body blows to the petroleum industry.
Rejoining the Paris Accord, naming John Kerry as climate czar and the youthful Pete Buttigieg as transportation secretary all signal a fresh start in a greener direction. Mark my words: Electric vehicle stocks as a whole and related green energy investments will flourish in 2021.
- 9 Meme Stocks That Social Media Won’t Shut Up About
And when my portfolio skyrockets, maybe I’ll celebrate by buying a spiffy vehicle from one of the companies below.
Electric Vehicle Stocks: Xpeng (XPEV)
Source: Andy Feng / Shutterstock.com
Not a lot of U.S. investors know much about XPEV stock. But I expect that to change big time in 2021.
The Chinese automaker belongs on our electric vehicle stocks leaderboard and here’s why: the luxury P7 sedan. You can only purchase it in China but one look and you’ll wish it was available here.
No lumpy utilitarian vehicle is this. French designer Rafik Ferrag brought it to life and it definitely turns heads.
So far, the P7 is a huge hit. Sales have from May 2020 have increased in every month but one through December 2020. Looking closer, 192 P7s were sold in May. In August, the tally landed four shy of 2,000. And in December, 3,691 P7s were sold – a month-over-month jump of 35%.
Already up 8% in 2021, XPEV is priced attractively and brims with promise. CNN Business shows a buy consensus for XPEV stock, with seven of 11 analysts giving it a “buy” rating, two a “hold” and two a “sell.” Earnings per share are underwater at -$1.03 – but here’s where it gets exciting. The median price target over the next 12 months is expected to climb by 580%.
Plug Power (PLUG)
There’s been some blowback among the short-sell types in regard PLUG stock. To my mind they’re full of hot air, though it’s definitely not hydrogen. Plug Power is a company that makes hydrogen fuel cells for forklifts and the , and as an alternative fuel powerhouse in the making earns a spot on my electric vehicle stocks list.
Following a 2020 when PLUG stock finished up by 950%, 10 of 12 analysts cited by the Wall Street Journal call it a “buy,” with just two calling it a “hold.” With its third-quarter report on Nov. 9, the company disclosed gross billings of $125.6 million, which reflects year-over-year growth of 106%. That made for the best third quarter run in the company’s history.
- 9 Meme Stocks That Social Media Won’t Shut Up About
Many will note, rightly so, that an investor rush helped propel PLUG stock to stratospheric levels. However, that doesn’t take away from the fact that no matter what Plug Power does or doesn’t accomplish in 2021, hydrogen fuel is here to stay. The hydrogen economy for vehicles of all kinds will become a mature market for cars, vans, buses and trucks by 2025, according to McKinsey.
Electric Vehicle Stocks: Tesla (TSLA)
Source: Ivan Marc / Shutterstock.com
Is Tesla CEO Elon Musk the world’s richest man? Or Jeff Bezos? Or Bill Gates? Really, who cares? What’s relevant here is that Musk made his billions in large part due to his TSLA stock, and has wise made wealthy investors of those who bought into his luxury EV dreams.
As EV makers go, it’s fair to say Tesla got the ball rolling for today’s hot auto and truck companies. TSLA endured years of profitless quarters.
But it did cap 2020 with profits in every single quarter and delivered 499,550 vehicles, just 450 below its half-million goal. New versions of the Model S and X are on the way and if those catch on, U.S.
consumers will grow even more accustomed to thinking of Tesla as an automotive household name, electric or otherwise.
To be sure, TSLA stock may sit at a climax top where it’s bound to fall some in 2021. But I’d treat that as a great buying opportunity. Musk expects 50% average annual growth in vehicle deliveries in the years ahead – and an even higher percentage in 2021.
Hyliion Holdings (HYLN)
Not every EV sector superstar will concentrate on making vehicles, let alone working with cars and SUVs.
Hyliion takes diesel trucks and transforms them into hybrids or EVs through an ingenious axle attachment, the V1 Hybrid system.
Among the EV stocks on this list, it’s a unique play that leverages the logic of targeting commercial vehicles already on the road and much more expensive to replace outright.
To be sure, a dramatic run-up in September has come and gone, making HYLN stock look a flat tire. But since it reverse-merged with Tortoise Acquisition Corp. in June, shares are still up 56%. What’s more, share prices held their own thus far in the new year, making this an attractive buy opportunity for those seeking a cheap stock in a growth sector.
- 9 Meme Stocks That Social Media Won’t Shut Up About
It may also help to know that the company’s young founder, Thomas Healy, is in this for the long trucker’s haul, you might say. When the reverse merger with Tortoise closed, Healy – all of 28 – was barred from cashing in on his HYLN stock when the deal closed. If he’s in it to win it, you should be, too.
Electric Vehicle Stocks: Lordstown Motors (RIDE)
Some electric vehicle stocks you just root for to win, and RIDE stock is one. The company took over the gargantuan, abandoned GM plant in Lordstown, Ohio, with hopes of writing a new chapter for the local workforce. Lordstown Motors has visions of turning the area into what it calls “Voltage Valley,” with the 6.2 million square feet facility as ground zero.
Then there is CEO Steve Burns, who as public image goes is something of an anti-Elon Musk. By all appearances, he’s a roll-up-your-sleeves kind of guy – what with his outdoor jacket vest that makes him look more an assembly line plugger than a chief executive. But he’s also laser focused on making his company, and RIDE stock by default, a marketplace force.
Since going public in October through one of those nifty reverse mergers so popular in the EV space these days, RIDE stock is up more than 50%. Get ready for September, when the company expects its Endurance pickup to go into full production. It already has more than 100,000 preorders, a great sign for investors.
ElectraMeccanica Vehicles (SOLO)
Source: Luis War / Shutterstock.com
When their companies have small market capitalization, electric vehicle stocks can bounce tires made of Superball rubber. Such is the case with SOLO stock. When it debuted in September 2017, it jumped up 400% in less than two months, and lost all those gains by August 2018. So why take a chance on it now?
Aside from the fact that the Canadian company’s shares have climbed 233% since October 2020, ElectraMeccanica is hoping to make a big splash in the Silicon Valley, not so much by fundraising as selling its mini vehicles in Marin County, while displaying them currently in San Jose. I think that’s smart: Get in the sight line of the VC big shots and rich EV evangelists, and hope they talk it up.
Personally I’d be frightened but exhilarated to drive a three-wheeler at 80 mph. That’s the maximum road speed the Solo EV is projected to hit once it becomes available in the spring.
But what else would you expect from CEO Paul Rivera? He loves to talk about how he played with Matchbox cars as a kid.
The best way to describe the Solo (or at the least the one way I can think of) is that it resembles some baby brother of Speed Racer’s Mach 5 racer.
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Given the stock’s attractive price point of $8 and change per share, the combination of vehicles hitting the lot and a rosy report for the first quarter of 2021 could send share prices on a nice little spike. All four analysts cited by the Wall Street Journal call SOLO stock a “buy.”
Electric Vehicle Stocks: Fisker (FSR)
Source: Eric Broder Van Dyke / Shutterstock.com
There are two ways to look at FSR stock. On the one hand, it may need some time to blossom as its Fisker Ocean SUV isn’t due to go on sale until late in 2022.
The other is that you’d be getting in on the ground floor – or the “Ocean floor” – if you buy shares now. A luxury car that’s the brainchild of A-list Danish auto designer Henrik Fisker, the Ocean promises to occupy the proverbial blue ocean.
That’s the economic term for a product that creates a niche all its own. Remember, Fisker is the man who designed James Bond’s famed BMW Z8. Really.
Billed as “the world’s most sustainable vehicle,” the Ocean isn’t merely electric. Currently priced at $37,499, it will have nine glass windows/panels that can open all at once, fully recycled carpeting, and a “vegan interior” with polycarbonate polyurethane surfaces. Whether you eat a Wendy’s Baconator in there is up to you.
The hope here is that even with the long lead time to market, the Ocean will stand out. I think it will, just by virtue of the dashing designer behind it – though an appearance in the next Bond flick wouldn’t hurt, either. Meanwhile, FSR stock has shot up more than 50% since bowing on the NYSE in October. That’s impressive as electric vehicle stocks go.
CIIG Merger (CIIC)
Without a doubt, 2020 was the Year of the SPAC, or special purpose acquisition company.
Formed to raise money for a company about to go public through a reverse merger, SPACs dominated the EV sector. They drove a number of high-profile debuts for electric vehicle stocks.
In the case of CIIG stock, it’s slated to fold into a U.K.-based company called Arrival sometime in March.
And Arrival is different: different enough to win. To flourish, electric vehicle stocks need wonderful products to back them up. Arrival is going after the commercial and mass transit markets with vehicles that are frankly cute and futuristic as hell. The vans look rectangular marshmallows and trapezoids on wheels, the buses resplendent, rolling tubes of glass.
Arrival also plans to construct two “microfactories” that, if you , reinvent the wheel for making wheels. You have to see these things. They are so compact that you could practically pack one up in a U-Haul. I want to be skeptical these facilities actually work as advertised. But it would be an encouragement to see something with this small a physical and carbon footprint take root.
- 9 Meme Stocks That Social Media Won’t Shut Up About
Over the last three months, CIIC stock is up roughly 175%. What do you say we all grab a ticket, get on board and go for a ride?
On the date of publication, Lou Carlozo held long positions in XPEV, NIO, TSLA and PLUG.
February 2021 Stock Market Outlook
Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.
Markets kicked off the new year by repeatedly testing fresh all-time highs through most of January, before a late-month slump saw the gains evaporate. After notching a handful of record closing highs, the S&P 500 ended January down 1.1%.
There were plenty of political headlines driving volatility—from the Senate run-off elections in Georgia, to the assault on the Capitol, to the inauguration of President Joe Biden. But perhaps the biggest story came from an unexpected source: Extreme speculation in certain corners of the stock market.
While speculative stock manias are nothing new, the disruptive power of day traders reached a fever pitch in January.
The market frenzy in shares of video game retailer GameStop was genuinely shocking, with the stock up 1,700% on the month at one point.
Fellow YOLO stock, AMC Entertainment Holdings, was up more than 800% on the month at one point. Both stocks only fell slightly from their highs by month’s end.
“I suspect when the time comes, we’ll look back at this period and see how obviously silly some valuations got,” notes Michael Winter, the founder and chief executive officer of Leatherback Asset Management in Palm Beach Gardens, Fla. “But right now, we’re in the punch bowl phase and markets seem bulletproof, while traders feel ebullient and happy.”
These types of speculative runs don’t show any signs of letting up soon, which makes it all the more difficult for people Winter, who picks stocks their fundamentals— the financial health of the company—for actively managed exchange-traded funds (ETFs).
The focus for the market overall will inevitably return to more typical concerns, corporate earnings, the pace of the economic recovery, the pandemic and progress on President Biden’s ambitious policy agenda.
Covid Remains the Most Important Factor for Markets
February marks the one-year anniversary of the start of the bear market that sent the S&P 500 tumbling nearly 34% in about a month. Even though stocks have fully recovered and kicked off a new bull market, progress and setbacks related to the Covid-19 pandemic continue to be a primary concern for investors.
“The most important thing for our well-being and the economy and capital markets is progress around Covid, both in terms of infections and vaccinations,” says Bill Merz, head of fixed income research at U.S.
Bank Wealth Management in Minneapolis.
“There is a lot of hope and expectation that the vaccine rollout continues at a rapid pace and vaccine efficacy is what we expect it to be and that, as a result, economic activity will continue to gradually normalize.”
Biden previously outlined a plan to vaccinate 100 million people in his first 100 days in office and more recently ordered enough vaccine doses to immunize 300 million Americans by early fall.
Meanwhile, the economy isn’t exactly roaring back. Gross domestic product (GDP) expanded at a 4% annual rate in the fourth quarter, which was slightly less than economists expected, and the U.S. economy shrunk by 3.5% in 2020, according to advance estimates released in late January by the Bureau of Economic Analysis. An update of these estimates is scheduled for release on Feb. 25.
the hundreds of economic data points that Merz and his colleagues track across the globe, there’s a common theme: “An improving economic picture, albeit gradual,” he says.
But another wave of Covid-19 cases or a spike in the death rate could restrict economic activity once again, which means the ongoing pandemic remains “the most important factor” for the market heading into February, he adds.
“Investors are positioning for an economic recovery and so we need to see a continuation of progress in order to maintain that strong sentiment,” Merz says.
Market Could Take a Breather as Washington Sorts Out Policy Goals
Don’t look to the stock market for a real-time indicator of how the rest of the country is doing. Despite the new bull market, more than 10 million Americans are unemployed and struggling financially—and many of them haven’t seen any direct benefits from the rise in stock prices.
The latest figures compiled by the Center on Budget and Policy Priorities illuminate these hardships: 21% of adult renters aren’t caught up on rent, 35% of adults had trouble covering usual household expenses in a recent week and 15% of adults with children in the home lacked sufficient food in a recent week.
In a series of executive orders in his first days in office, President Biden has requested an extension of the freeze on federal student loan payments, expanded food assistance programs, and an extension of eviction and foreclosure moratoriums, among other measures. He also announced his top legislative priority, a $1.9 trillion stimulus package.
These policy initiatives will be a big focus heading into February, especially as there is ly to be “some wrangling” about the exact scope of that proposed package among members of Congress, says David McInnis, a certified financial planner (CFP) and the co-founder of The East Paces Group in Atlanta.”It is my hope and expectation that some version of the stimulus package will get passed in February.”
Still, McInnis says he would to see a more targeted approach to further stimulus that focuses on industries— travel and restaurants—that have been hit especially hard by the pandemic. And the recent rally “could take a breather” in the month ahead as the exact details of President Biden’s proposed package are sorted out.
“If Congress is haggling over the price tag, or how the stimulus is priced and deployed, I think that could be an issue for why the market slows down in February,” McInnis says.
Earnings season (for the fourth quarter of 2020) will also continue into February, and that’s typically a volatile period for the market in general.
Some companies that have reported profit results in recent weeks that handily beat Wall Street expectations while others have revealed the ongoing toll to their business from the coronavirus pandemic.
“We anticipate a little bit of softening in the market in terms of earnings news,” McInnis says.
Finally, February historically isn’t a great one for the market—it’s one of just three months of the year when the S&P 500 has experienced average declines going back to 1929, according to data compiled by Yardeni Research.
The Market Outlook for the Remainder of 2021
It certainly hasn’t been a boring start to the year for investors, but the speculative fervor of January has been pretty contained to certain stocks. For now, there’s no reason to believe that the outlook for the broader market in 2021 will change as a result.
Early in January, as the number of Covid-19 cases spiked, investors overlooked the pandemic to focus on what would happen months down the road. “Markets were looking ahead to a world where the vaccine was available, which allows activity to resume to close to normal again,” Merz says.
The vaccine is also top of mind for the Federal Reserve.
Following the Fed’s most recent meeting in January, Chair Jay Powell said the economy is moderating and pledged that the central bank will leave interest rates near zero and continue its quantitative easing (QE) program for the foreseeable future. But the Fed’s tools don’t compare to the potential impact of getting Americans vaccinated, according to Powell.
“That is really the main thing about the economy is getting the pandemic under control, getting everyone vaccinated, getting people wearing masks and all that,” Powell said during a news conference on Jan. 27, following the Fed’s policy meeting. “That’s the single most important economic growth policy that we can have.”
Still, Fed policies have played a key role in markets. By keeping bond yields low, money keeps flowing into stocks rather than bonds because of the higher relative returns, McInnis says. The proposed stimulus package would inject more money into the economy, which could further boost stock prices. “We anticipate a solid year for stocks,” he adds.
Finally, even though there still is so much uncertainty about the near-term future, Merz says the longer-term prospects for investors are more favorable.
“We do have a glass-half-full outlook,” he says. “We have a slight preference for holding larger-than-usual positions in stocks and slightly less than normal positions in bonds to capture the potential for additional upside.”
Elon Musk, the world’s richest man, is about to get a whole lot richer
For a CEO who receives no salary, Elon Musk’s 2020 payday reached sky-high levels.
He received four grants to buy 8.4 million Tesla shares in 2020. After paying the exercise price, those blocks of stock options were each worth $6.2 billion at Wednesday’s closing price. The combined $24.8 billion value of those options alone is more than Musk was worth a year ago when Forbes calculated its billionaire’s list, when he was ranked as the world’s 31st richest person.
2021 and 2022 could be nearly as lucrative for him.
The company’s annual financial filing this week disclosed that Musk will probably receive three additional options grants this year, each as large and as lucrative as those he received in 2020.
At current values, those three options tranches would be worth $18.6 billion.
Analysts are now forecasting that Tesla’s 2022 financial results will wise reach heights that would bring Musk three additional blocks of options. Tesla could hit one of those profit targets in 2021, which would mean Musk could match the four tranches of options he received last year.
Few investors are complaining about Musk’s pay.
The stock’s 743% rise in 2020 made it the stock market’s biggest winner, as well as one of the most valuable companies in the world. That has quieted most of the criticism he might have faced.
“The cachet of Tesla is Musk,” said Daniel Ives, tech analyst for Wedbush Securities. “The reason investors have not batted an eyelash is that due to Musk’s strategic direction, Tesla is on top of the EV [electric vehicles] mountain going to the golden age of EVs. And he’s put Tesla on the cusp of being a trillion-dollar market cap company.”
The rise in Tesla’s stock price, and his options to buy new shares, has made Musk the richest person on the planet, according to Bloomberg, surpassing Amazon founder Jeff Bezos.
Did Musk really need any more options?
Un Musk, Bezos doesn’t receive stock options from Amazon, and he collected relatively modest salary of $81,840 in 2019, plus security services valued at $1.6 million a year. But rather than benefit from stock options or grants as do most CEOs, he benefits primarily from the rise of his Amazon shares.
Musk similarly owns 170 million Tesla shares outright, worth about $137.2 billion, in addition to those existing shares he has options to buy new ones. In fact, the nearly $123 billion gain in 2020 in the value of shares Musk already owns dwarfs the value of the additional options he received.
Musk, who bought a controlling stake in Tesla in 2004 when it was an upstart private company years from building its first car, takes no salary. Before his current lucrative compensation package he had an earlier version that paid him with options to buy 22.9 million split-adjusted Tesla shares for a price of $6.24 each. Those options are worth $18.3 billion today.
The options he received last year came from a second compensation package that was overwhelmingly approved by Tesla shareholders in 2018. It allows him to receive options to buy as many as 101 million split-adjusted shares of stock for $70 each. Those options can come in 12 separate, equally sized tranches.
If Tesla’s share price keeps climbing, so will the value of the options. In late May, when Tesla confirmed Musk received the first block of options for 2020, they were valued at “only” $770 million after the exercise price. Today they’re worth $6.2 billion.
Musk has not exercised any of his options. Executives typically exercise them when they are due to expire, or to free up cash. Musk has never sold Tesla shares.
Cost to Tesla of the options
Those options come at a cost to Tesla, although it’s a non-cash expense.
Stock-based compensation accounted for a $1.7 billion hit to Tesla’s bottom line last year. The company doesn’t break out how much of that was Musk’s or how much was stock for its other 70,750 employees.
But Tesla did say that Musk got so many options, so much sooner than expected, that it caused the spike in stock-based compensation expense. In 2019, stock-based compensation was about $900 million.
Musk received no options in 2019, but some of that $900 million was an expense Tesla booked because it believed that Musk would receive options in early 2020.
While the stock-based compensation doesn’t drain cash from Tesla’s coffers, it does change the company’s profit picture.
The company reported positive net income for the first time in 2020, earning $721 million. Critics point out that its profit was far less than the $1.6 billion Tesla received from the sale of regulatory credits to other automakers. They claim the company actually lost money on car sales, and it can’t depend on the revenue from the sale of those credits in the long term.
Without the $1.7 billion in stock based compensation, Tesla’s net income would exceed the gains from the sale of those regulatory credits. And Telsa critics would not have been able to claim it lost money selling cars.
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.
11 Electric Car Stocks to Watch in 2021
Electric vehicles are HOT right now … and I have 11 electric car stocks to watch in 2021!
The stock market action just rages on, repeatedly beating record highs — sometimes on consecutive days.
I’m seeing so many sectors with incredible moves, but EVs have to be at the top. I mean … even in this global pandemic, there’s been tons of momentum in the whole sector. In fact, one of my favorite stocks across all industries has been EV maker, Tesla Inc. (NASDAQ: TSLA).
With President-elect Joe Biden taking office in January, and the shift to green energy picking up steam, this sector could be on the move for a while.
Now does that mean you should just trade any EV stock? Well … no. Just any other hot sector, some stocks are moving better than others.
Today I’m gonna make it easy for you. I’ll show you the top electric car stocks I’m watching so you can build your own watchlist.
#1 Tesla Inc. (NASDAQ: TSLA)
I said, TSLA is one of my favorite stocks across all industries, so it makes sense to start off the list with it.
Not only is the company owned by my favorite billionaire (who I also think is the smartest guy alive) — but the stock is definitely the market leader. It’s causing the other electric car stocks to move.
The company has so much going for it, and the stock was recently added to the S&P 500. TSLA also had a big stock split. Now the price is heading up toward its pre-split price!
Listen, if you forced me to only pick one stock to invest in, guess what it would be … Yep, TSLA.
Tesla Inc. (NASDAQ: TSLA) 6-month chart (Source: StocksToTrade)
#2 Blink Charging Co. (NASDAQ: BLNK)
With more people buying electric cars, there will be a growing need for places to recharge them. So of course it’s smart to look at electric car charging station stocks.
Blink Charging Co. makes creative premium EV charging stations, and its stock has been on fire. Three months ago it was a penny stock … Since then it’s exploded to almost $35.
Blink Charging Co. (NASDAQ: BLNK) 3-month chart (Source: StocksToTrade)
#3 Fisker Inc. (NYSE: FSR)
Fisker is an EV startup that makes an affordable electric SUV called the Ocean.
The Ocean is still a prototype but it’s set for production in late 2022. Plus, the company is well funded with over $1 billion in cash.
FSR has a nice balance of potential and affordability for traders who want to get in on the EV craze but have smaller accounts. As of this writing, the stock is currently in the $15s, which is a big difference from TSLA’s $600+ stock price.
Fisker Inc. (NYSE: FSR) 6-month chart (Source: StocksToTrade)
#4 Arcimoto Inc. (NASDAQ: FUV)
Arcimoto makes three-wheeled EVs, each made for a specific purpose. Its FUV model — which stands for Fun Utility Vehicle — is for recreational use. Its Rapid Responder is for emergency, security, and law enforcement services. And its Deliverator is for delivery services.
FUV had huge moves in November, running from the $5s to over $20.
Acrimoto Inc. (NASDAQ: FUV) 3-month chart (Source: StocksToTrade)
#5 Workhorse Group Inc. (NASDAQ: WKHS)
If we’re taking electric car stocks, we gotta talk WKHS. This company makes electric delivery trucks and has been around for a while.
The stock has been on several of my lists over the past year … partly because it’s been affiliated with a lot of news.
Back in May, President Trump mentioned WKHS in a tweet that caused it to explode more than 200%.
One of the most important news stories for the company has been its highly anticipated contract for $6.3 billion with the U.S. Postal Service (USPS). The contract was expected to be signed before the end of the year … But USPS has decided to delay a decision on the order until the first quarter of 2021.
As you might’ve expected, the bad news caused WKHS to tumble under the $20 mark … but it’s since recovered.
Workhorse Group Inc. (NASDAQ: WKHS) 1-year chart (Source: StocksToTrade)
#6 General Motors Co. (NYSE: GM)
General Motors is such an old company that you may not think of them when it comes to EVs or electric car stocks.
The company is serious about becoming a leader in the sector, though … It’s even teaming up with the Nikola Corporation (NASDAQ: NKLA) to help build the Badger truck.
GM will spend $20 billion by 2025 and launch a range of different EVs that are powered by low-cost batteries.
Oh … and GM unveiled the 2022 GMC Hummer EV, which is being billed as the world’s first all-electric “super truck.” Yowza!
General Motors Co. (NYSE: GM) 1-year chart (Source: StocksToTrade)
#7 Nio Inc. (NYSE: NIO)
Nio makes premium smart electric vehicles for the Chinese market, and it’s a favorite for a lot of traders in 2020.
I mean … just six months ago, this was a penny stock! Last year it dropped as low as $1.19 and was left for dead. Now the hot electric vehicle market has caused it to skyrocket past $50. Talk about volatility!
With solid earnings reports the past couple of quarters, NIO is one to watch.
Want to learn more about volatility? Check out “The Volatility Survival Guide” I created with my friend Tim Sykes for this crazy market.
Nio Inc. (NYSE: NIO) 6-month chart (Source: StocksToTrade)
#8 Li Auto Inc. (NASDAQ: LI)
LI was on fire last month, jumping 78% to almost $50 a share.
The Chinese EV manufacturer has a strong demand for its Li ONE model, and its last earnings report was very encouraging.
The stock pulled back in December but has the potential to heat up again.
Li Auto Inc. (NASDAQ: LI) 3-month chart (Source: StocksToTrade)
#9 Xpeng Inc. (NYSE: XPEV)
Xpeng is a Chinese EV manufacturer aimed at attracting the mid and lower tier premium markets.
Its focus on technology and software is attracting attention. It’s positioning itself for future revenue through subscription services that will enable autonomous driving and upgraded infotainment services.
Recently, Deutsche Bank gave the stock a ‘Buy’ rating and named the company one of the “Fab Four” EV companies that are destined to conquer the Chinese auto market.
XPEV is pulling back after running up to almost $75.
Xpeng Inc. (NYSE: XPEV) 3-month chart (Source: StocksToTrade)
#10 Kandi Technologies (NASDAQ: KNDI)
Kandi differentiates itself from other Chinese electric car stocks by targeting the low-priced market. Instead of high-end luxury models Nio and Tesla, Kandi provides vehicles that are much more accessible.
The company has plans to bring more of its low-cost approach to the U.S by providing an EV model for less than $10,000.
Kandi Technologies (NASDAQ: KNDI) 6-month chart (Source: StocksToTrade)
#11 ElectraMeccanica (NASDAQ: SOLO)
If you’re looking for an EV penny stock, SOLO could be your jam. As of this writing, SOLO is in the $6s.
ElectraMeccanica makes a small EV model with three wheels and only seats one person.
SOLO has stair-stepped up since June and has gone as high as almost $14.
ElectraMeccanica (NASDAQ: SOLO) 3-month chart (Source: StocksToTrade)
Albemarle Corp. (NYSE: ALB)
The huge demand for electric vehicle batteries is increasing the demand for lithium, the key element in lithium-ion batteries.
The Albemarle Corporation is the world’s largest lithium producer. Its stock had a killer November, spiking up more than 35%. That’s a huge move for a high-priced stock!
As more automakers manufacture EVs, we’ll see the demand for lithium explode even more. ALB could definitely be one of the companies to benefit from that environment.
Albemarle Corp. (NYSE: ALB) 6-month chart (Source: StocksToTrade)
Sociedad Quimica y Minera de Chile (NYSE: SQM)
SQM is a Chilean chemical company and another large lithium producer that will benefit from the increased need for EV batteries.
It’s done nothing but go up since March, starting just under $15 and grinding past $48.
Sociedad Quimica y Minera de Chile (NYSE: SQM) 6-month chart (Source: StocksToTrade)
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Well, there’s my list of 11 electric car stocks to watch in 2021!
I’ve done a lot of the hard work for you and picked what I think will be the biggest movers in this unbelievably hot sector.
There’s so much promise for this sector, and there’s no telling how long it could keep going.
Remember, stocks on watchlists are just ideas. You still have to do your due diligence and wait for your setups to form. Make sure you create a trading plan before entering any trade. If you don’t have time to make a plan … don’t trade the stock!
Also, make sure to track your trades. Even losses could be great lessons if you do things strategically.
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What are your favorite electric car stocks that didn’t make my list? Let me know … Leave a comment below!