The Hottest Electric Car Companies For 2021
Mentioned: ELCR TSLA
Never before in the history of money-making has wealth accumulation happened as fast as it has with Elon Musk. Tesla (NASDAQ:TSLA) surged past even Warren Buffett's Berkshire Hathaway last Friday. Now, the rapid-fire EV giant is the 6th largest publicly traded company in the U.S. Its market capitalization is now a mind-blowing $555 billion. And its founder and CEO, Elon Musk, is now wealthier than Bill Gates. Also mentioned in today's commentary includes: Blink Charging (NASDAQ:BLNK), Fisker (NYSE:FSR), NIO Limited (NYSE:NIO), XPeng Motors (NYSE:XPEV).
Holding status as the second-richest person in the entire world, this year alone, Musk has added over $100 billion to his net worth, according to Forbes. Just when investors thought Tesla didn't have much upside left, November saw epic gains of yet another ~50%. An already massive stock has gained 600% year-to-date. And the good news keeps rolling in, with Tesla joining the S&P 500 starting on December 21st and a number of other fast-paced catalysts.
It's boosting the entire EV industry, and every company with a tie-in to EV. So, imagine what the next Tesla could be. Or what getting in on the ground floor of an EV tie-in company could possibly produce ...
Four Trends To Watch As The EV Boom Accelerates
#1 Charging Infrastructure
This is a "story stock". But so was Tesla, and so is every EV industry tie-in. It's been a lucrative story. Investors are piling into a story that details what our future is clearly going to look like. That's where all the money is made. It's an "if you build it, they will come" narrative that's netting massive returns for investors.
Blink Charging (NASDAQ:BLNK) is building an EV charging network. It's small, but it has explosive potential. The bigger the EV industry itself becomes, the better this stock looks.
While the coming months may be volatile, we still think there's a lot of upside here, considering that Blink has so far deployed nearly 16,000 charging stations (based on Q3 reporting), about half of which are actually in the Blink Network. So while this is still early days, the EV tailwinds are carrying it far and fast, and while the build-out continues, a stock with over 1,000% gains is an acquisition power. It can expand, and it can buy competitors.
#2 The Green Transportation Ecosystem
There probably isn't a better "story stock" than Facedrive (FD.V, FDVRF). And it's already built--with fast-track expansion going down month after month. And it's not a charging station. Or another EV.
It's the tie-in of tie-ins because it's an entire ecosystem of tie-ins to the EV industry. It's the first ever carbon-offset ride-sharing platform, launched in Canada and intending to push hard into the United States and Europe.
It's carbon-offset food delivery ... bringing EVs and food delivery, two explosive segments, under a single umbrella. It's the recent blockbuster acquisition of one of the most potentially disruptive companies in the auto industry to date: Washington, DC-based Steer, an EV subscription company that plans to revolutionize transportation.
Steer is a seamless, state-of-the-art EV subscription platform that gives you your own virtual gallery of EVs. You choose what you want to drive and Steer's concierge service delivers it to your doorstep, every day, every month, or whenever you want.
Driving--and "having" an EV ride--has never been easier. And this is exactly what promises to help push EVs over the mainstream dividing line. And so far, data shows that Steer's first customers were never even EV owners. That means the company not only stands to completely change the way we think about car ownership, but it also promises to convert more mainstream drivers into EV loyalists. This is how you'll probably drive a Tesla in the future. Or, an Audi e-Tron.
In the meantime, this acquisition has given Facedrive (FD.V, FDVRF). some powerful backing. Steer was backed by $40-billion market cap energy giant Exelon, and the deal with Facedrive including a $2-million strategic investment by Exelon's wholly-owned subsidiary, Exelorate Enterprises, LLC.
The news flow has been absolutely stunning, ...and combined with the tailwinds of the EV industry, we expect big things for this story.
#3 The American EV Giants
Tesla (NASDAQ:TSLA) is the de-facto king of the electric vehicle market. And it's easy to see why. Armed with slick cars, game-changing technology and an out of this world CEO, Tesla has a lot going for it.
Tesla is now the most valuable car maker "of all time". It is now worth almost $538 billion while the top three American automakers--GM, Ford and Chrysler--are worth around $70 billion.
Billionaire Elon Musk had his eye on this trend far before the hype started building. He released the first Tesla Roadster back in 2008, making electric vehicles cool when people were still snubbing their noses at the first-generation EVs. Since then, Tesla's stock has skyrocketed by over 14,000%. But while Tesla's EV threat to the industry is clear, the competition is heating up in China.
Fisker (NYSE:FSR) is a speculative play. It won't start producing its EV SUVs until 2023. But again, it's a story stock that looks a lot like Tesla did in the early days. Fisker stock has gained almost 60% in a month.
Citigroup analyst Italy Michaeli just picked up coverage of Fisker, with a "Buy" rating and a price target of $26. Michaeli gets the narrative here, reminding investors that "as a pre-revenue company, Fisker is clearly a higher-risk investment proposition", but there's a big reason to be bullish. Fisker has four long-term advantages here: It's making an SUV, which Michaeli says is a good segment to target. It's got a strong brand. It's got a legacy behind the wheel: Henrik Fisker is Fisker's founder and he's a legend in automotive design. And it's a massive saver of capital because it has an innovative "asset light" approach, getting Magna International to assemble its first vehicle. It's already got 9,000 advance orders ... prepaid.
And when it does come out with its first Ocean SUV, it will be at a $40,000 price point and a super flexible lease set-up that could be incredibly disruptive ...
#4 Chinese Carmakers Join The Competition
NIO Limited (NYSE:NIO) has had an incredible year, taking the market by storm. Just a year ago, no one could have imagined how successful the company was going to be. In fact, many analysts were ready to leave it for dead. But the Chinese Tesla rival powered on, blew away estimates, and most importantly, kept its balance sheet in line. And it's paid off. In a big way. The company has seen its share price soar from $3.24 at the start of 2020 to a high of $50 earlier this week, representing a massive 1443% returns for investors who had faith.
Recently, NIO revealed a pair of sedans that would make even the biggest Tesla devotees turn their heads. The vehicles, meant to compete with Tesla's Model 3, could be just what the company needs to pull back control of its local market from Elon Musk's electric vehicle giant.
While NIO's sales struggled earlier this year, they quickly rebounded in the second quarter and have maintained an upward trajectory ever since. By its Q4 report in October, NIO announced that its sales had more-than doubled, projecting even greater sales in the months to come. The EV darling has come a long way from its rumored potential bankruptcy in 2019, and if this year shows investors anything, it's that its CEO William Li is has big ambitions and enough drive and skill to see them through
XPeng Motors (NYSE:XPEV) has had a terrific time as a newcomer in the market. Though it only recently IPO'd, it's been on a tear. Though the Chinese electric vehicle giant is riding on the coattails of Tesla and NIO, it has carved out its own demand, especially among Robinhood traders looking for the next big score. Since its NYSE debut in August, the ambitious electric vehicle company has risen by more than 157% thanks to its promising financials and growing demand for its stylish vehicles.
While it's definitely a favorite among retail investors, Xpeng has also received a ton of interest from Big Money. Earlier this year the company raised over $500 million from the likes of Aspex, Coatue, Hillhouse Capital and Sequoia Capital China, and even more recently, secured another $400 million from heavy hitters such as Alibaba, Qatar Investment Authority and Abu Dhabi's sovereign wealth fund Mubadala.
As the demand for electric vehicles continues to grow, newcomers like Xpeng provide an excellent opportunity for investors to jump on this undeniable trend even if the missed out on Tesla's meteoric rise to glory.
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