Incidentally, out of ZI at 39.75 cost. Oh well, stopped out.
2 ARTICLES ABOUT ELECTRICS-
THE FIRST ARTICLE HERE:
3 Electric Vehicle ETFs To Floor It With
9:30 am ET August 11, 2020 (Benzinga) Print
Tesla (NASDAQ: TSLA) is just one example and a stellar one at that, which is to say electric vehicle stocks are on fire this year.
While a spate of small companies small, obscure electric vehicle manufacturers are striking while the iron is hot and testing the initial public offering market, there are credible fundamentals backing the ascents Tesla and other established players in this arena.
“The Electric Vehicles Market is projected to reach 26,951,318 units by 2030 from an estimated 3,269,671 units in 2019, at a compound annual growth rate of 21.1%,” according to Markets and Markets research.
That buoyant forecast could bolster the case for the following electric vehicle exchange-traded funds.
Global X Autonomous & Electric Vehicles ETF (DRIV)
The Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV) is nearly 2 1/2 years old and considering how hot the EV theme is, the fund is somewhat obscure with just $30 million in assets under management.
Up almost 12% year-to-date after hitting an all-time high on Monday, DRIV may be an underappreciated story. What's notable about this fund's ascent is that it's not heavily dependent on Tesla as a primary driver of returns. In fact, Elon Musk's company accounts for less than 3% of DRIV's weight. Rather, the Global X ETF offers a deeper reach into the EV ecosystem, featuring exposure to manufacturers as well as components makers.
DRIV follows the Solactive Autonomous & Electric Vehicles Index and its top two holdings are high-flying Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA).
SPDR S&P Kensho Smart Mobility ETF (HAIL)
Up 18.21% this year, the SPDR S&P Kensho Smart Mobility ETF (NYSE: HAIL) also joined the all-time high club on Monday. Like its aforementioned rival DRIV, HAIL isn't excessively allocated to a single stock.
And while HAIL isn't a dedicated EV ETF per se, it does offer solid reach into a variety of manufacturers as Nio (NYSE: NIO), Workhorse (NASDAQ: WKHS) and Tesla are found among the fund's top 10 holdings. HAIL's 4% Workhose weight is one of the largest such exposures among all ETFs.
Like DRIV, HAIL also offers a deep bench in terms of broad EV exposure. The SPDR fund features exposure to more than 15 industry groups.
iShares Self-Driving EV and Tech ETF (IDRV)
The iShares Self-Driving EV and Tech ETF (NYSE: IDRV) is one of the newer offerings in this category at a little over a year old.
It has a deep bench of 101 stocks, which is sizable compared to other thematic offerings and the fund is an option for investors looking for decent Tesla exposure as the stock is IDRV's largest holding at a weight of 6%.
That plus Apple and Nvidia combine for 9.5%. Add those three up and IDRV has the goods to at least pique investors' interest.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
THE SECOND ARTICLE HERE:
NIO Stock Drops Even After Solid Earnings. But That's What's Usually Happens. -- Barrons.com
10:24 am ET August 11, 2020 (Dow Jones) Print
By Al Root
Stock in Chinese electric-vehicle maker NIO was falling Tuesday morning after the company reported second-quarter sales that were better than expected. Despite the reaction, the report is another good data point for the EV industry, demonstrating that Chinese EV demand and EV penetration rates continue to improve off pandemic-induced lows.
NIO (ticker: NIO) lost about 16 cents a share -- NIO reports figures in Chinese currency -- from roughly $526 million in sales. Both numbers are better than analysts expected. NIO isn't profitable yet. Earnings matter less than sales at this point in the company's history. Sales exceeded estimates by about 6%.
What's more, gross profit margins were better than management guidance. "With the strong momentum of quarterly deliveries, rise of average selling price, reduction of battery pack and other [compensation] costs and improvement of manufacturing efficiencies, our gross margin has substantially increased in the second quarter," CEO William Li said on the company's earnings conference call. That is another positive for investors to take away from the quarterly report.
NIO shares were down 2.8% to $13.82. Expectations were high after a 280% gain over the past three months. Year to date, shares are up about 250%, far better than comparable returns of the S&P 500 and Dow Jones Industrial Average. Other EV stocks have done just as well. Tesla (TSLA) shares are up about 240% year to date.
Gains have made Tesla the most valuable car company in the world, and its success has helped all EV stocks, including NIO.
Looking ahead, NIO expects to deliver 11,000 to 11,5000 vehicles in the third quarter, up more than 125% year over year. NIO sells cars only in China and is covered by analysts stationed overseas. That makes it harder to get vehicle-delivery estimates and compare guidance to the expected figure. Numbers for U.S. based companies are easier to come by. Tesla analysts, for instance, expect Elon Musk's company to deliver 146,000 vehicles in the third quarter of 2020.
The question-and-answer period during the earnings conference call didn't cover much new ground. Analysts asked about autonomous-driving technology, overall demand -- which was called strong by company management -- and profit margins.
There was an interesting question asked about overseas expansion. Management said it would like to expand overseas, but didn't provide details.
NIO vehicles use battery swap technology, in addition to traditional plug-in EV charging. Being able to swap battery packs allows owners to keep one charged all the time, essentially reducing the vehicle down time for recharging. An EV swapping infrastructure isn't required to sell NIO vehicles overseas, but it may represent a small planning headwind for the company to consider.
Overall, investors don't have much to complain about. Still, anticipating the stock reaction can be hard, although with NIO it has been pretty predictable. Shares have dropped following five of the past seven quarterly reports.
Over the short run, Wall Street -- or the Chinese equivalent of Wall Street -- is an expectations game.
Write to Al Root at allen.root@dowjones.com
(END) Dow Jones Newswires
August 11, 2020 10:24 ET (14:24 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
AI
