The electric vehicle industry is going through a lot of innovation and a new shake-out might be in the works. It’s a climate that gives interesting opportunities for smart investors, but the circumstances are not without risks. As such, it does make sense for investors in this sector to spread out their investments.
Among the top companies is of course Tesla. But it is likely one you already know. So in this list, we will be going over the other three giants that are not so well known. That is, Nio, Toyota Motor and Lucid Group.
Here is why each of these stocks seem to be so attractive.
After three years of its initial offering on Wall Street, Chinese EV producer Nio has increased its quarterly revenue from $7 million up to $1 billion. What is more, the company will continue to grow sales rapidly in the incoming years. The company continues to narrow its losses as it continues its deliveries. In the past quarter, it doubled its deliveries y/y to 21,896 vehicles.
The automaker plans to increase its addressable market by creating lower-priced models. Nio is expanding into Europe, too, by starting to sell its latest electric vehicle in Germany by the end of next year.
Toyota Motor sold 9.5 million cars in last year, taking the title of the world’s top automaker from Volkswagen. Also last year, Toyota produced net profits of $21 billion for sales of $256 billion. And for some perspective, last year, it moved almost 20 times as many cars as Tesla. Though Toyota is not growing as fast as Tesla, that is mainly because of the difference in their sizes. Value investors will see Toyota as an attractive stock. Toyota has partnered with the company Aurora to push its electric plans. And, it wants to launch 15 new EV vehicles by 2025.
Since Lucid Group has not yet started commercial deliveries to its customers, it is a riskier EV stock to own than the ones discussed above. It might encounter technical problems getting its cars to market, or its offerings might not do as well as some expect. Another question is if the company can boost production as quickly as it plans to.
On the positive side, the EPA has credited the company’s Air Dream R model with 520 miles on one charge. That is a new record for any electric car. So, the company could deliver what it has said is going well. Models with greater range might help the company carve a spot for itself in the EV markets.
Author: Blake Ambrose