If there’s one stat that really shows the growth potential in the electric vehicle space over coming years, it’s this: EVs accounted for only about 4% of total vehicle sales in the U.S. in 2021. The country says that percentage will increase more than 12-fold by 2030.
Similar targets have been expressed by other major developed world governments. This positions the EV industry as one of the most reliably explosive bets for investors over coming years.
Over recent weeks, many of these stocks have been pulling back as capital rotates from growth to value on rising interest rates to start 2022. But that dynamic has created some carnage in its wake as margin calls and liquidity issues force max-pain selling in some former highfliers. A rare opportunity for savvy market participants may be in the offing as a result.
With that in mind, we take a look at a handful of the most interesting opportunities in the space below.
Tesla Inc. (Nasdaq:TSLA) is certainly the most well-known and successful electric vehicle producer. But shares have recently been consolidating with reports pointing to some issues around its release of its new Cybertruck design.
The company engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The company operates through its Automotive and Energy Generation and Storage segments.
Tesla Inc. (Nasdaq:TSLA) recently announced fourth quarter production data, including news of the production of more than 305,000 vehicles and deliveries of over 308,000 vehicles. For the year of 2021, the company delivered over 936,000 vehicles.
The company’s press release also went on to note, “Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q4 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.”
If you’re long this stock, then you’re liking how the stock has responded. TSLA shares have been moving higher over the past week overall, pushing about 2% to the upside on above average trading volume.
Tesla Inc. (Nasdaq:TSLA) managed to rope in revenues totaling $13.8B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 56.8%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($16.4B against $18.1B, respectively).
DSG Global Inc. (OTC US:DSGT) is a much smaller name, but it could be a disruptive insurgent on the make in the space as its Imperium Motor Company subsidiary gets moving with its new Skywell model, which is already starting to receive rave reviews among the EV intelligentsia.
DSG Global frames itself as an emerging global technology company with an array of interconnecting businesses in some of the fastest-growing market sectors. With roots in the golf industry, in which it specializes in fleet management with patented analytics, mobile touch screen engagement and electric golf carts under the Vantage Tag Systems (VTS) brand, the Company is moving quickly with road-ready electric vehicles for sale in the last quarter of 2021 through Imperium.
DSG Global Inc. (OTC US:DSGT) advanced that story with a release just this morning pointing to coverage of the Imperium Skywell on Munro Live, one of the most important EV podcast/YouTube shows, hosted by industry legend Sandy Munro. The show, “Imperium Skywell: Sandy’s First Impressions”, has already been viewed about 50k times in just five days.
Sandy gave the Skywell high marks in the video.
Munro Live is hosted by auto industry legend Sandy Munro. Munro has become one of the most respected voices in the electric vehicle industry, and his podcast has hosted top industry players including Elon Musk of Tesla, Inc. The Munro Live YouTube channel has over 263k subscribers.
DSG Global Inc. (OTC US:DSGT) trades on the OTC. But this is no fly-by-night operation. And it’s not a hoax or a pipedream. The company is already commercial in the EV space with high-quality vehicles that will likely start to get more and more attention now that the likes of Sandy Munro have already signed on as fans. DSGT shares should be on the radar for market participants interested in the EV space.
Xpeng Inc – ADR (NYSE:XPEV) frames itself as a company that designs, develops, manufactures, and markets smart electric vehicles in the People’s Republic of China.
It offers SUVs under the G3 name; and four-door sports sedan under the P7 name. The company also provides sales contract, maintenance, super charging, vehicle leasing, and ride-hailing services.
Xpeng Inc – ADR (NYSE:XPEV) recently announced that it has upgraded its auto-grade voice assistant using Microsoft custom neural voice capability, based on Neural Text-to-Speech (TTS), a feature of Azure AI. XPENG installed the new voice assistant functionality via a major over-the-air (OTA) upgrade for its P7 smart sedan customers in China.
According to the release, Microsoft research breakthroughs in speech, natural language and machine translation have helped significantly advance the fluency, quality, fidelity, and naturalness of voice assistant technology over the past several years. These innovations have been integrated into commercially available speech and language capabilities within Azure Cognitive Services and other Microsoft products, so that companies like XPENG can bring richer, more engaging experiences to their customers.
We’ve witnessed 18% piled on for shareholders of the company during the trailing month. This is emblematic of the stock. XPEV has evidenced sudden upward volatility on many prior occasions. Moreover, the company has seen interest climb, with an increase in recent trading volume of 6% over what the stock has registered over the longer term.
Xpeng Inc – ADR (NYSE:XPEV) currently trades at a market capitalization of $42.5 billion with a significant war chest ($36.8B) of cash on the books, which stands against about $11.4B in total current liabilities. One should also note that debt has been growing over recent quarters. XPEV is pulling in trailing 12-month revenues of $13.6B.
Other key names in the EV space include NIO Inc. ADR (NYSE:NIO), Nikola Corp. (Nasdaq:NKLA), Rivian Automotive Inc. (Nasdaq:RIVN), Blink Charging Co. (Nasdaq:BLNK), and Workhorse Group Inc. (Nasdaq:WKHS).
