8 EV Stocks to Invest in 2023
In Brief: Take a look of 8 EV companies’ stocks insight to invest in 2023.
In the wake of Russia’s sanctions, gas prices are expected to rise again. Despite the fact that demand remains weak, even this time of year, it is not because of a decline in supply. Instead, the problem is with the supply of the product. A shortage of petroleum products could decrease the ability to make gasoline as a result.
Consequently, owners began to move to electric vehicles (EVs), with more and more people choosing to drive them. Vehicles powered by electricity emit significantly fewer emissions than vehicles powered by petrol or diesel. In terms of efficiency, electric vehicles can convert around 60% of the electricity from the grid to power the wheels, while petrol and diesel cars can only convert 17%-21% of the energy stored in fuel to power the wheels. In other words,over the years, more and more people choosing to drive them. One reason for this trend is that EVs are more environmentally friendly than traditional gasoline-powered vehicles.
Are EV stocks a good buy?
As a trader, there are several reasons why you might consider investing in an electric vehicle (EV) car company.
- Growth Potential: The global EV market is expected to grow rapidly in the coming years, with increasing demand for clean energy and environmentally friendly transportation. Investing in an EV car company could potentially offer high growth potential.
- Government Support: Many governments around the world are offering incentives for consumers to purchase EVs, which is likely to increase demand for these vehicles. Additionally, some governments are offering subsidies or tax breaks to EV car companies, which can also be beneficial for investors.
- Competitive Advantage: Some EV car companies may have a competitive advantage over traditional car manufacturers due to their expertise in electric powertrain technology. This advantage could potentially translate into increased market share and profitability.
- Innovation: EV car companies are often at the forefront of innovation in the automotive industry, developing new technologies and designs that may be more attractive to consumers. This innovation could lead to increased brand recognition and loyalty, which can be valuable for investors.
- Social Responsibility: Investing in an EV car company can align with your personal values and social responsibility goals, as these companies are helping to reduce carbon emissions and promote a more sustainable future.
There are 8 EV companies’ stocks to buy in 2023.
Ensure that you do not limit your list of electric vehicle companies just to those that manufacture EVs, but that you also include companies that manufacture and sell electric vehicles, electric vehicle components, and related products and services that support the production of an electric vehicle.
Wondering which EV stocks to buy? Worry not, here is the list of 8 EV companies that are listed on Nasdaq.
1. Tesla Inc. (TSLA)
Tesla needed no introduction in the EV world. The company was well known for it services of designing and manufacturing electric vehicles, battery energy storage from home to grid-scale, solar panels, and many more.
As investors turn their attention to Tesla (TSLA), the global EV giant holds its investor day Wednesday, March 1, 2023. A new announcement of Master Plan lll, Giga- Mexico, New Gen Vehicle, Platform, Charging Station, and more.
Tesla’s upcoming new factory in Mexico joins other carmakers that have expanded south of the US border. This is Tesla’s third factory outside the United States after plants opened in China and Germany. This confirmation by Tesla of its plans comes just a few weeks after BMW announced that it would also be investing in a factory in Mexico, along with Ford relocating its electric SUV plant there.
A production upgrade of the Model 3 with an emphasis on lower production costs will begin in September at the company’s Shanghai facility. Furthermore, Tesla is also updating the Model Y’s interior and exterior with a 2024 production target, according to Reuters.
Tesla’s stock price had been in constant dropped since last September 2022, finally seeing a light in the tunnel as shares started to bounce from January 3, 2023. The share had increased 76.60% YTD.
Investors reacted inversely towards the Investor Days as Tesla’s stock fell from $206.06 during March 1’s opening session to $191 after hours and continued to fall to $186 on March 2’s opening session. Since then, the stock had fallen 7%.
2. NIO Inc. (NIO)
NIO Inc well known as a Chinese premium EV startup or China Tesla is one of the companies that was impacted by Tesla’s abrupt price drop decision. Due to Tesla’s price cut in China, some analysts warn that NIO’s EV demand could weaken which force them to follow in its footstep.
*NIO said it expects to generate sales for about $1.6B in Q1 2023 while Wall Street was looking for $2.5B.
As expected, NIO experienced Q4 losses of 5.96% which is bigger than expected. According to the last earning call, NIO earnings had fallen below the feared level. NIO’s Q4 loss of $0.51/share on revenue of $2.33B, slipped from Wall Street analysis as they were looking for a loss of $0.26/share from about $2.5B sales.
The company said that for the first quarter of 2023, it expects to deliver between 31,000 and 33,000 vehicles. NIO has delivered 20,663 vehicles in January and February, leaving roughly 11,000 to 12,000 vehicles to be delivered in March.
NIO stock falls again, Wall Street doesn’t like its earnings update.
Nio’s American depositary shares plunged by as much as 6.6% on Wednesday morning after the release of its fourth-quarter earnings report highlighting its net losses of $838.9M in Q4 2022, widening by almost 170%.
According to CEO William Li, 1,000 power swap stations will be built this year and five new products will be delivered in 2023 on the new platform.
3. Li Auto Inc. (LI)
The company involved directly in the EV ecosystem as the company designs, develops, manufactures, and sells premium smart electric vehicles. As the newest player in the Chinese new energy vehicle market, Li Auto Inc announced on the March 1 2023, that it delivered 16,620 vehicles in the month of February 2023, an increase of 97.5% in the number of vehicles delivered. In addition, Li Auto Inc secured a quarterly revenue growth rate YoY of 20.20%.
“We successfully executed our growth strategy in 2022, cementing our leadership in the family SUV segment while holistically strengthening our business across R&D, supply chain, direct sales, and servicing network,” – said Chairman Li Xiang
Li Auto Inc. highlighted that it expects revenue for Q1 to come in as high as $2.7B as a revamped and expanded product line has helped it win sales from an array of rivals including Tesla Inc., NIO, BYD, etc.
Li Auto’s more compact batteries are also more resilient to rising lithium prices, with lithium carbonate prices hitting record highs in November. Gross margins for the fourth quarter of the year grew to 20.2% from 12.7% the previous quarter.
Li Auto’s U.S.-traded shares, which sank 37% last year, are up 20.69% since January.
4. XPeng Inc. (XPEV)
The Guangzhou, China-headquartered electric vehicle startup XPeng Increported that its February deliveries have declined modestly over the past year by 6,010 vehicles. This represents an increase of 15% sequentially, but a decline of 3.9% compared to the 6,522 units the company sold last year.
There is still a lot of work to be done in order to increase the company’s international presence. Among other developments, the company has opened its second retail store in both Denmark and the Netherlands in February. Additionally, the company opened its first European service center in Lrenskog, Norway in February.
Currently, XPeng Inc. has gained $0.59 (6.75%) now trading at $9.33 . The stock price dropped slightly of 4% prior the news and start to bounce back after the company reported a wider-than-expected loss and revenue that fell short of forecasts.
5. Fisker Inc. (FSR)
Fisker Inc. is another American automotive company founded by Henrik Fisker and his wife Geeta Gupta-Fisker in 2016. It is an extension of Fisker Automotive.
The company reported maintained its 2023 vehicle production target and said it spent less than anticipated in 2022. To be sure, the company posted a larger-than-expected Q4 loss and revenue.
Electric vehicle startup Fisker said on February 27, 2023 Monday that it remains on track to begin deliveries of its Ocean SUV this spring and to build more than 40,000 vehicles in 2023. Adding to that, Fisker also said it has made progress on its upcoming second model, a lower-cost small EV called the Pear, and it remains on track to go into production next year.
“We took on a lot by doing both U.S. and Europe homologation at the same time, but the ability to sell the Ocean in so many countries is an important de-risking strategy that gives us the opportunity to increase sales and shift to whichever market offers the strongest growth”. Henrik Fiske, CEO
When addressing as opposed to Tesla, Henrik Fisker turn it back as an opportunity on Charging, Reservations and Profitability in 2023: “The company you just mentioned (Tesla)) has 7k chargers while ChargePoint and their affiliates have over 400k chargers! It’s definitely a GameChanger, it’s going to be super easy to charge your Fisker Ocean”.
Shares of the electric vehicle startup surged more than 30% after its earning announcement.
6. Workhorse Group Inc. (WKHS)
The Workhorse Group is a technology company that specializes in providing electric vehicles to the last-mile delivery sector in both ground and air based forms. Workhorse is also an American original equipment manufacturer of battery-electric trucks and drones.
“We’re confident in our corporate trajectory and remain well-positioned to win in the commercial EV market with safe, reliable and durable products that create value for our customers, communities, and shareholders.” – Rick Dauch, Workhorse CEO.
In their latest Q4 and Y2022 report released on March 1, 2023 highlighted – Workhorse’s Stable & Stalls as a fleet electrification initiative that provides services and charging infrastructure to support small fleet operators with EV powered fleets.
Workhorse Group Inc share fall from $2 on the earning day to $1.74 before bounce back to $1.88 today. (March 3, 2023). Despite a rocky year, Workhorse Group may be on the verge of taking off. It seems that the company reported Q4 results below expectations, but it is a hiccup in transitioning to a better and newer company, specifically the supply chain delays for the new models that contributed to the results being below expectations.
7. Lucid Group Inc. (LUCID)
Lucid Group, Inc. is an American electric vehicle manufacturer that focuses on manufactures luxury electric cars, as well as provides energy storage and original equipment solutions.
The core EV technology of Lucid is not only developed in-house, but also produced at Lucid’s dedicated EV powertrain factory in Arizona, where Lucid produces its own electric motors, transmission systems, power electronic inverters, the revolutionary Wunderbox, and racing-derived batteries.
Upcoming, AMP-1 Phase 2 expansion will add ~3.0M square feet to Lucid’s existing plant and increase installed capacity to 90,000 units per annum in 2024. WHile AMP-2 in Saudi Arabia construction is underway.
Future projection of 10,000-14,000 vehicles with Lucid Air Sapphire production to begin in summer 2023 and Lucid Gravity SUV production to begin in calendar year 2024.
The stock goes public on July 2021 with $9.89. The stock had experienced a 13.75% slipped. However, the shares had bounced back since January 26 2023 and had a total of 38.25% increased since the last January.
8. Rivian Automotive, Inc (RIVN)
Rivian Automotive Inc. revealed on Tuesday, February 28, 2023 its net loss in the Q4 of the FY2022 came in at $1.7B compared to the same period in 2021.
As a result of a ‘robust’ backlog, RJ Scaringe said the automaker will not take part in the electric vehicle price battle started by Tesla Inc. this year.
Rivian’s Q4 loss $1.87/share vs. consensus $1.96/share and it also fall short on revenue expectation of $61M with reported Q4 revenue of $663M. Not only that, Rivian’s Q4 net loss up 32% to $1.7B.
Future projection of 50,000 vehicles production by 2023. The company previously produced 24,337 vehicles across our two vehicle platformsm in 2022 and increased production 36% in the Q4 compared to the Q3.
Rivian announced abundance with lingering supply chain bottlenecks, and announced a recall of more than 12,700 vehicles sending its share to down -9.02% in the pre-market of March 1 2023 after dropped to 8% after the announcement.
Other listed EV companies.
These companies are involved in the manufacturing and sale of electric vehicles, electric vehicle components, and related products and services.
- Electrameccanica Vehicles Corp. (SOLO)
- Kandi Technologies Group, Inc. (KNDI)
- Ayro, Inc. (AYRO)
- Arcimoto, Inc. (FUV)
- Mullen Automotive, Inc (MULN)
There are mixture acceptance of US Ev companies yet, China based- EV makers Nio, Xpeng and Li Auto all recorded monthly delivery increases in February.
This uplift in sales could be explained by Lunar New Year landing in January this year rather than February last year, when most car makers suspended manufacturing and sales. “As expected, deliveries in February rose from January,” said Chen Xiao, chief executive of Shanghai Yacheng Culture.
Amidst concerns about jobs and wages in a tight economy, Chinese car buyers have opted for cheaper EV models sold by domestic car manufacturers rather than going for a foreign car supply.
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