The $5-trillion global transportation industry is going green, and the result of the U.S. election only solidifies that fact.
Tesla (NASDAQ:TSLA) might be too expensive a play to offer the upside we’re all looking for in the EV sector…
But some of the absolute best growth opportunities right now are in this sector–and anything that ties into it.
EV-linked stocks are blowing away the S&P 500 and the Dow.
Tesla’s on a tear–up over 400% this year–and the better it does, the better the EV-linked stocks do.
But one thing is clear: Growth stocks are still outperforming value stocks–and have been for years. Tomorrow’s growth prospects are wildly more lucrative than today’s simple profits when we’re talking about revolutionary ideas and technology.
From direct Tesla challengers on the EV circuit …
And comprehensive tech-driven ecosystems that are riding the EV sector wave on multiple surfboards …
To major developments on the hydrogen fuel cell scene …
The tie-in opportunities for investors are as many as they are big.
Here are 3 stocks that offer brilliant growth-tie-ins to the expanding EV industry:
Fisker (NYSE:FSR) is the new darling of the non-Tesla EV world because it boasts the most sustainable vehicle on the road: It’s not just electric… it’s also is made with some recycled materials. It’s the Ocean SUV–the SUV that just might end up removing all the “shame” from driving a big family vehicle.
Now, the stock is soaring in the wake of its first Wall Street “Buy” rating, which came on November 9th, along with a $22 price target–double where the stock was when Cowen analyst Jeffrey Osborne made the call.
There’s been some crazy volatility here lately. The stock went from $10.17 at the beginning of the year to as high as $17.39 in mid-September and even dipped all the way down to $8.96 on October 29th before repairing to around $17.50 on November 13th.
Investors are concerned about the EV bubble and the fact that Fisker isn’t likely to start producing until 2023. But this is a high-growth potential play with one of the most renowned auto designers in the world–Henry Fisker.
The Ocean SUV’s price point of $40,000 is also set to disrupt the Tesla-bound EV sector. When 2023 rolls around and these most sustainable EV rolls off the assembly line, they will be instantly competitive.
As of now, Fisker has around 9,000 paid deposits. For 2021, the general expectation is that this will be considerably more thanks to a massive marketing push that Wall Street quite liked because it includes brand-building celebrities and the construction of an “experience center” in L.A.–in the heart of it all.
Osborne is anticipating that these catalysts–and the overall market accelerants in the EV sector–will drive pre-production sales growth upward nicely for Fisker in 2021. We think so, too.
If ever there was a stealth tie-in to the EV surge, it’s Steer, the elite-for-the-masses Electric Vehicle subscription company that plans to revolutionize the transportation industry.
And it was just acquired by Facedrive–an incredibly ambitious Canadian ‘Silicon Valley’ tech company that’s got pioneering “impact investing” verticals reaching into everything from transportation and healthcare to food delivery and eSports.
Steer gives you your own virtual gallery of EVs many might never have been able to afford otherwise … and delivers them to your doorstep whenever you want for how long you want.
All at the click of a button.
Washington, D.C.-based Steer–with state-of-the-art digital innovation–plans to completely disrupt car ownership.
And it’s got the backing of $40-billion market cap energy giant Exelon (NASDAQ:EXC), too.
When Facedrive scooped up Steer in September, the deal also included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC.
If you want to drive a Tesla AND an Audi e-Tron … this is the way to do it.
Canadian Facedrive has to be singled out here because it’s probably the smartest company we’ve seen in its strategy of tying into multiple tech-driven ESG industries for maximum impact and tons of verticals.
While its flagship ride-sharing platform threw a major challenge to giants Uber and Lyft by being the first in the world to grasp the ESG megatrend by offering carbon-offset rides, planting trees along the way, and letting people choose EVs or hybrids …
That was just one major launch out of an entire ESG ecosystem:
The news flow has been absolutely stunning.
The past few months have seen this company strike a series of landmark deals and attract some of the biggest names in tech, energy, and transportation. (And even in the Major League Sports arena).
In September, Facedrive scooped up Washington, DC, based-Steer in a deal that included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC.
This is where we get to combine the $5 trillion global transportation industry with an energy industry whose renewables sector alone is expected to grow dramatically each year.
Facedrive and Steer have set out to revolutionize personal transportation by completely changing the way we view car ownership.
It will be a huge boon for the greatly expanding EV industry because anyone who couldn’t afford a Tesla .. or perhaps an Audi e-Tron … can now drive one, with Steer’s EV subscription service.
Private car ownership is under threat. Conventional car ownership is under an all-out attack.
It took almost a decade for car sales in the European Union to even begin to recover when Uber and Lyft decimated sales in urban areas.
And now, the pandemic could change private car ownership forever because the general idea of a pandemic has been irrevocably tied to other “natural disasters” and the fear of climate change.
Economics plays a big role, too, and will do so even more under the struggles of COVID-19.
Chicago-based Steer says it’s time for a transportation revolution, and it fully intends to get more people into unconventional cars–without breaking the bank.
And with Facedrive (TSXV:FD,OTC:FDVRF) behind the wheel now, we see big things happening, with the added benefit that investors are getting into a company that has an entire tech-driven ESG ecosystem with deals being cut in rapid-fire succession.
Facedrive’s flagship ride-hailing platform was the pioneer of a carbon-offset version of this explosive segment, and now an accessible, elite car subscription vertical that firmly plants Facedrive in the United States market for a planned major expansion.
It’s yet another way for morel EVs to go mainstream–even faster.
#3 Plug Power
Plug Power (NYSE:PLUG) is one of those plays that defines speculation. But here’s the thing: it’s based on an industry that’s on track to be worth $11 trillion.
This is a hydrogen fuel cell play, and the massive money inflow around hydrogen could keep PLUG–a highly volatile stock of late–pumping along nicely.
Riding high the hydrogen hype, PLUG is up over 517% year-to-date:
But you have to know how to play the volatility and be patient.
The response on November 10th to PLUG’s Q3 earnings the day before demonstrates the volatility here.
The stock surged 6% that morning and then lost 6% by close as investors considered what they thought of PLUG’s earnings and worried about the EV-related bubble bursting and getting left caught holding the hydrogen bag.
Like our other two stock picks here, PLUG is a growth potential stock, and its earnings were expected to come in showing a loss. And it did: PLUG reported a Q3 loss of $0.11 per share, compared to a loss of $0.08 per share a year ago. It was an earnings surprise of -83.33%. Revenues were $106.99 million for the quarter, compared to revenues a year ago of $56.38 million.
In Q2, it delivered an earnings surprise of 66.67%. So, what gives? It’s outperforming the market wildly, so why did investors get cold feet on November 10th, after piling into it hours before? Quite simply: This run on hydrogen is a new thing and no one can pinpoint what might come next for this stock.
If investors are getting cold feet, all it takes is a bit of a reminder as to how much money is pouring into hydrogen right now–and PLUG is a pioneer.
Here are 3 other companies to have on your watchlist as well:
#4 NIO Ltd
NIO Limited (NYSE:NIO) has had an absolutely stellar year. Though many analysts and even veteran Wall Street traders were ready to leave it for dead, the Chinese Tesla rival powered on, blew away estimates, and most importantly, kept its balance sheet in line. And thanks to its efforts, the company has seen its share price soar from $3.24 at the start of 2020 to a high of $46.59 earlier this week, representing a massive 1337% returns for investors who have believed in it. And it’s just getting started.
Nio has made all the right moves over the past year to win over investors and turn heads on the streets and in the marketplace. On November 18th, NIO revealed a pair of sedans that even the biggest Tesla die-hard would struggle to pass up. 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.
Though NIO’s sales slumped at the beginning of the 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
#5 Xpeng Motors
XPeng Motors (NYSE:XPEV)
Xpeng is a relative newcomer in the electric vehicle scene, but it has seen tremendous success in its short time on the market. The Chinese electric vehicle giant is riding on the coattails of Tesla and NIO, but 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 44% thanks to its promising financials and growing demand for its stylish vehicles.
In addition to retail interest, 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.
#6 Blink Charging
Blink Charging (NASDAQ:BLNK) an electric vehicle charging company, has seen its stock price rise by over 400% this year alone, and it’s showing no signs of slowing. A flurry of new deals, including a collaboration with EnerSys have created some support for the relative newcomer.
Michael D. Farkas, Founder, CEO and Executive Chairman of Blink noted, “This is an exciting collaboration with EnerSys because it combines the industry-leading technologies of our two companies to provide user-friendly, high powered, next-generation charging alternatives. We are continuously innovating our product offerings to provide more efficient and convenient charging options to the growing community of EV drivers.”
Another high-profile deal between Blink and Envoy Technologies to deploy electric vehicles and charging stations adds further support.
Aric Ohana, CEO of Envoy noted, “We’re excited to work with Blink on the deployment of their fast Level 2 charging stations as part of our exclusive electric car-sharing service. The vision of our two companies is aligned: to advance the adoption of electric vehicles. To continue to drive the growth and success across our expanding locations, we have to ensure that our clients have easy and efficient access to high-quality, reliable charging equipment. Blink has an established reputation as an innovator in the EV market, and we are thrilled to add them as a preferred partner.”
Bonus: Canadian Companies Are Getting Involved As Well
GreenPower Motor (TSX:GPV)
GreenPower Motor is a promising young electric bus manufacturer. Currently, its focus is primarily on the North American market, but it has plenty of room to grow as the industry takes off. Founded over a decade ago, GreenPower has been on the frontlines of the electric movement, manufacturing affordable battery-electric busses and trucks. From school busses to long-distance public transit, GreenPower’s impact on the sector can’t be ignored.
Year-to-date, GreenPower Motor has seen its share price soar from $2.03 to $24.45. That means investors have seen 1104% gains this year alone. And with this red-hot sector only going up, GreenPower will likely continue to impress.
NFI Group (TSX:NFI)
NFI Group is another one of Canada’s home-grown electric vehicle pioneers producing transit busses and motorcycles. The company had a tough go at it towards the beginning of the year, but has since cut its debt and begun to address its cash flow struggles in a meaningful way. Though it remains down from January highs, NFI still offers investors a promising opportunity to capitalize on the electric vehicle boom.
In the previous months, NFI has seen an uptick in insider stock purchases which is often a sign that the board and management strongly believe in the future of the company. In addition to its increasingly positive financial reports, it is also one of the few in the business that actually pay dividends out to its investors.
Westport Fuel Systems (TSX:WPRT)
Westport is a renewable energy provider for the transportation industry. it provides systems for less impactful fuels, such as natural gas. In North America alone, there are over 225,000 natural gas vehicles. But that shies in comparison to the global 22.5 million natural gas vehicles globally, which means the company still has a ton of room to grow!
Boralex Inc. (TSX:BLX)
Boralex Inc. is an ambitious Canadian renewable firm. The company’s primary energies are produced through wind, hydroelectric, thermal and solar sources and help power the homes of many people globally. Not only has it has had a great influence in the adoption of renewable electricity domestically, it’s even branching out into the United States, France and the United Kingdom.
BCE Inc. (TSX:BCE)
BCE is another household name in Canadian telecom. Throughout its push into the position of one of Canada’s top telco groups, it has bought and sold a number of different firms. BCE is currently at the forefront of the Internet of Things movement in Canada. That means it will play a vital role in building new sustainability projects and making Canada’s cities smarter and more efficient. Likewise, it will play a key role in the adoption of transportation technologies and self-driving vehicles.
By. Jeff Everett
**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 completely change the way people view car ownership, that Steer can disrupt industry segments; 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; 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; the ability of Facedrive to attract providers of good and services for merchandise partnerships on terms acceptable to both parties, and on profitable terms for Facedrive; 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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