There’s no denying that last year was an incredible year for electric vehicle stocks.
Elon Musk briefly took the crown of the richest man in the world thanks to Tesla’s shocking 750% climb…
While a Chinese competitor, Nio Inc., rose by a remarkable 1295% over the same amount of time.
While those who didn’t buy in on these two giants while they were cheap may feel that they’ve missed the rally...that couldn’t be further from the truth.
The story is much larger, and there are other EV and EV-related stocks that continue to have tons of room to run.
There are even stocks that are flying completely under Wall Street’s radar--and they could even see gains that exceed those of Tesla or Nio.
Nothing screams the “next Tesla” like Fisker (NYSE:FSR), an EV maker that is betting on futuristic and fully recyclable materials, headed up by a legend in automotive design …
Or even a tech company creating its own green ecosystem like Facedrive (TSXV:FD; OTC:FDVRF), a leading Canadian startup that’s got several EV verticals, including its recent acquisition of Steer-- a Washington, DC-based EV subscription company that is looking to upend the auto industry by completely transforming the notion of car ownership as we know it.
It would also be a good idea to keep a close eye on infrastructure plays like Blink Charging (NASDAQ:BLNK), a new leader in EV charging equipment that’s got very long legs.
Anything EV Is Golden Right Now
Yes, EVs are golden ....
Biden’s victory, a global clean energy push and the ongoing pandemic are the main drivers behind a $40-trillion energy transition of which electrified transportation will be the lion share.
Yes, Tesla will continue to surprise the markets, and for short-sellers who lost $40 billion betting against the EV behemoth, it’s time to look for a new gig.
Fisker, for example is much like a Tesla type EV maker: It’s working on fresh EV concepts, and has a legend behind the wheel in the form of Henrik Fisker. And don’t be fooled, it’s not just another EV SUV--it’s a vehicle constructed with recyclable parts, something that pleases activist investors and huge institutional funds that are looking for the next epic investment that could mimic Tesla.
Fisker isn’t going to start producing its famed Ocean SUV until 2023, with significant revenues coming in from advance orders not expected until late 2021. This may be a reason for Wall Street’s elite not to go long on Fisker, but may just be the perfect opportunity for investors to get in on the ground floor of what could become the next big EV producer.
Next to Fisker, there’s Facedrive - one of the front-runners of Canada’s ‘Silicon Valley’—and another EV related success. We like the flagship carbon-offset ride-sharing and food delivery side their business, but we’re extremely excited about their recent acquisition of Steer.
Because this isn’t just the start of the golden age of EVs … it’s the start of a completely different lifestyle.
Facedrive’s (TSXV:FD; OTC:FDVRF) added Steer to their growing list of acquisitions in September 2020, and we expect the news flow to increase over the next few months as two of the most innovative EV-linked tech companies combine their forces to upend car ownership in North America.
Steer isn’t anything like your average car rental company (Hello Hertz). It offers consumers their own private EV showroom (virtual, of course), sporting on-demand EV delivery for consumers, offering a flexible alternative to car ownership.
Steer users are able to drive the newest and hottest EVs on the market. The platform offers something for all budgets and tastes. Forget about the extra insurance – it’s all included in the price. No maintenance. No hassle whatsoever. It’s simply the most revolutionary app in on-demand EVs so far.
Facedrive stock has pulled back over the last few days after going on a bit of a tear. There appears to be support at this level and this could be a good entry point for new investors.
Exelon (NYSE:EXC), a $40B market cap energy giant is a strategic partner in Steer.
And with everyone switching to EVs … the next stock to watch is Blink Charging. This innovative company could turn out to be one of clearest emerging beneficiaries from the EV boom.
The incoming Biden administration is looking to invest $2 trillion into renewables infrastructure, and nothing speaks to EV infrastructure right now like superchargers do.
Blink operates, provides and owns EV charging equipment and networked EV charging services in the United States. The company has been one of the first in its field, and that’s why its share price has exploded 2,500% in 2020, and if you think the rally can’t go any further … consider the string of deals that the company has recently closed.
Each one of these innovative tech companies are set to ride the Tesla wave in a time where EVs are set to transform the world.
Fisker (NYSE:FSR) is a promising up-and-coming American electric vehicle company that looks to go head to head with some of the biggest names in the industry. While it hasn’t seen quite the attention other electric vehicle stocks have seen, it is an important company to watch. It’s unique in the industry because it boasts the most sustainable vehicle on the road: It’s not just electric… it’s also is made with some recycled materials. That’s a huge plus considering how much investors are focusing on sustainability these days.
While Fisker has underperformed on the market compared to NIO, Tesla, Xpeng or Li, it’s still trading on massive volume and it’s not seeing much major movement in either direction. That’s not necessarily a bad thing. Especially with how crazy the markets are these days. Clearly, it’s group of savvy investors are still waiting to see how the company will hold up over time. And given the current climate, it is an outlier in the market because of its stability. This is definitely a company to buy and hold for the long term, and that’s largely due to its innovative approach to the industry.
The four-year old California based EV provider is already turning heads thanks to its innovative battery tech, and it’s already securing some major deals. In fact, just recently, Fisker signed a deal with Viggo, a European ride-hailing service to add hundreds of vehicles to its fleet. Moves like this will be key in its future success, and investors
Electra Meccanica Vehicles Corp (NASDAQ:SOLO) is another up-and-coming electric vehicle producer to watch. It’s turning heads on the street and on Wall Street with its sleek and unique single-seat electric vehicles. The Canadian company’s electric car carries a lower, and more appealing price point for consumers that do not need all the bells and whistles that come with luxury brands like Tesla and NIO or even conventional Detroit classics like GM and Ford. It’s also on the cusp of an emerging market. In fact, demand for single-seat electric vehicles are projected to grow significantly in the coming years, and SOLO is one of the few companies in this market, representing a great opportunity for investors looking for an easy-entry EV stock with a lot of potential upside.
Electric Meccanica isn’t focused solely on the single-seat niche, however. It’s also planning to roll out an electric sports car for two, the Tofino, and another electric two-seater boasting an old-school design that will appeal to a wide range of consumers. From classic car lovers to EV fanatics, it’s latest fleet will definitely generate some headlines and water cooler conversations. Given that the stock is only trading at $8 at the moment, there is a lot of room to grow. And early investors in Electra Meccanica could stand to see some substantial returns.
Though electric vehicle companies are getting most of the attention, autonomous vehicles should not be ignored. Robot cars will not only reduce emissions, but completely change the idea of car ownership as we know it. And Alphabet Inc. (NASDAQ:GOOGL) is, without a doubt, a leader in this burgeoning industry.
Waymo, a subsidiary of Alphabet, has had cars driving themselves across the United States for several years. In fact, in Arizona alone, Alphabet’s self-driving cars have logged over 6.1 million miles. To put that in perspective, that means that Alphabet’s autonomous cars have driven the distance between New York City and San Francisco over 2100 times. Or, as the company explains, “over 500 years of driving for the average licensed US driver.” Even more impressive, however, the vehicles were only involved in 47 “contact events”, and the vast-majority of the collisions were the result of human error and none resulted in any sort of severe injury for anyone involved.
Though these tests are very promising for Alphabet’s Waymo, there are still some hurdles to overcome. First and foremost, these lengthy trials took place in Phoenix, a city not exactly known for extreme weather. Second, an issue that may frustrate many drivers, the vehicles operated in a sort of hyper-cautious mode, driving at slower speeds and taking sometimes unnecessary precautions to avoid conflict.
Though Alphabet has received much of the credit for these massive feats, a widely loved and wildly popular chipmaker is actually the driving force in these endeavors. Intel Corporation (NASDAQ:INTC) and Waymo teamed up nearly half-a-decade ago, and have worked together to fine tune this futuristic technology together ever since. Through their mutual knowledge of hardware and software, the tech giants have made leaps and bounds towards building the car of the future.
And Intel isn’t one to be pigeonholed into a sole industry, either. In addition to its efforts with Waymo, Intel has also been on the forefront of developing its own artificial intelligence and vision hardware. Back in 2017, it acquired MobileEye, a supplier of camera-based chips and software to the global mobile industry. And now, in a new deal with Luminar, another emerging tech company on the forefront of this movement, Intel is positioning itself as its own giant of this new sector.
LIDAR technology will play a massive role in the future of not only self-driving cars, but also in the advancement of robots, mapping, security and more. The world is ever-changing and these industries will help shape the future as we know it, and Intel is acutely aware of this. While the electric vehicle industry is grabbing headlines today, Intel is already looking to the future. And that bodes well with investors looking to capitalize on these trends.
With Big Tech and upstarts like SOLO and Fisker getting so much attention, some alternative fuel companies are flying under the radar, and that could be beneficial for those who jump on this train early. Take Bloom Energy Corp. (NYSE:BE), for example. Bloom designs, manufactures and sells solid-oxide fuel cell systems. And, yes, there’s been a ton of cash burn up to this point, but it’s heralding massive innovation--and that’s what tech startups are all about. Growth runways, not immediate profit.
That’s why we are willing to throw tons of money at our innovative future. Eventually, the narrative changes and for the successful companies, the cash burn stops and there starts to be payback for investors. Anyone who didn’t get in on time got left in the innovation dust.
That’s what’s already happening with Bloom. Savvy investor patience is paying off. Bloom is now on track to be the first fuel cell maker to become cash-flow positive. And this could all be about to get even bigger. Why? Because this relatively small company is thinking in huge terms: We’re not just talking about fuel cells for construction vehicles or to power remote electricity generation … Bloom is thinking far bigger than that. It’s targeting utility-scale applications of fuel cells and industrial-scale applications, and drawing in some very big names in the process.
GreenPower Motor (TSX:GPV), like SOLO, is an exciting Canadian company with a unique approach to the electric vehicle boom. At the moment, its focus is primarily on the North American market, but its ambitions are much larger. Founded over 10 years ago, GreenPower has been on the frontlines of the electric transportation movement, with a focus on building affordable battery-electric busses and trucks
Over the past year, GreenPower Motor has seen its share price soar from $2.03 to a high of over $30 before stabilizing around $29. That means investors have seen 1300% gains in just a year. And this could be just the beginning of the ambitious EV company’s run.
Like GreenPower, NFI Group (TSX:NFI) is another one of Canada’s premier electric bus producers. And it’s following the same path as its peer. Year to date, NFI has climbed a noteworthy 27%, and it’s just getting started. NFI still offers investors a promising opportunity to capitalize on the electric vehicle boom at a relative discount.
Over the past year, NFI has cleaned up its financials and continued paying a comfy dividend to its investors. This is great because many competitors don’t offer these incentives. Investors can take advantage of the extra income while this industry heads even higher. And once this gem is discovered, it’s likely to head into the stratosphere.
Another way to gain exposure to the electric vehicle industry is through AutoCanada (TSX:ACQ), a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financial options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada will likely see a rebound as both buying power and the demand for electric vehicles increases. As more new exciting EVs hit the market, AutoCanada will surely be able to ride the wave.
Magna International (TSX:MG) is a special stock with a long history of success. It’s a great way to gain exposure to the exploding clean energy and electric vehicle markets without betting big on one of the trendy Reddit stocks that have fallen victim to their own hype. The 63 year old Canadian manufacturing giant provides mobility technology for automakers of all shapes and sizes. From the legacy Detroit giants like GM and Ford to luxury brands like BMW and even Tesla, Magna is a premier distributor to all of them. And it’s easy to understand why. The company has lived up to all expectations and is clearly great at making deals.
Since March of last year, Magna has seen its share price jump from a low of $37 to an all-time high of $98. And with the car industry rebounding in full force, Magna still has a lot of upside potential. Especially if it keeps impressing with its solid financials and deal making abilities.
Westport Fuel Systems (TSX:WPRT) is another great way to gain exposure on the booming green energy and electric vehicle industries. Like Magna, Westport produces auto parts that will be necessary in the transition away from oil-based products. With over 50 years of experience in developing and deploying alternative fuel systems, Westport has the drive and innovative edge to make waves in the market. The company’s biggest innovation, however, has been in its natural gas products. And while natural gas vehicles don’t quite get the attention of electric vehicles, they’re still going to play a viable role in the world’s energy transition. There are already over 22 million natgas vehicles on the road, and that market is expected to grow exponentially over the next few years.
The market is already looking towards stocks like Westport. In fact, since January of this year alone, Westport has seen its share price surge drastically, rising from $6 to its current price of $14.37. And if its multi-year chart says anything, this stock has a lot of momentum to continue climbing even higher.
By. Chloe Mole
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will be able to expand to the US and globally; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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