5 electric vehicle companies to watch in 2022
The electric vehicle boom is in full swing …
And although corporate valuations have already skyrocketed over the past two years …This new market trend has legs.
Think about it …Sales of electric passenger vehicles are expected to grow by more than 80% to 5.6 million units in 2021 …And it’s clear to see why.
The world is running towards a potentially catastrophic climate event. And only a reduction in emissions can prevent it.
This is why BNEF, the strategic research arm of Bloomberg, predicted that there could be as many as 677 million zero-emission vehicles on the roads by 2040.
The race for emission-free transport has seen businesses grow by leaps and bounds over the past two years …
Take, Nio Limited (NYSE: NIO) for example. Since the start of 2020, it has jumped 684%.
And of course, Tesla (NASDAQ: TSLA) has grown even faster, skyrocketing by almost 1000% in the same time frame.
While these gains are impressiveâ¦ this revolution is just beginning.
That’s why we’ve put together a list of our favorite EV companies for 2022 and beyond.
# 1 – Tesla Motors
After peaking at nearly $ 1,250 per share on November 4 of this year, the electric vehicle maker Tesla (NASDAQ: TSLA) saw its stock price drop below $ 900, wiping out any gains since the automaker struck a huge deal with car rental company Hertz.
The $ 4.2 billion deal, which was revealed on October 25, marked the start of another major rally in Tesla shares, with markets reading the deal as a signal that electric vehicles are going mainstream.
The Hertz rally pushed Tesla’s market capitalization well above the astronomical figure of $ 1,000 billion. While some analysts quickly predicted some sort of correction in stock prices, others readjusted their bullish forecast for Tesla.
Wedbush Securities analyst Dan Ives has set a price target of $ 1,400 on Tesla shares. According to Ives, the energy transition will create a huge $ 5,000 billion market opportunity over the next decade, and Tesla is expected to maintain its market leadership.
On the other side of the spectrum is the Tesla JPMorgan bear. The investment bank continues to say that Tesla is woefully overvalued, and before the Hertz rally, the bank expected Tesla to fall back to $ 250 per share in December 2022.
While the sale of Omicron on the stock markets certainly weighed on Tesla, the real catalyst was CEO Elon Musk’s decision to sell a large number of stocks. After polling the public on Twitter, Musk sold nearly $ 13.6 billion in shares, with some of the offers already seized before the poll.
# 2 – Li Auto
Li Auto (NASDAQ: LI) is a newcomer to watch in the Chinese electric vehicle space.
And while he might not be a market veteran like Tesla or even NIO, he’s quickly making waves on Wall Street.
Supported by Chinese giants Meituan and Bytedance, Li has taken a different approach to the electric vehicle market. Instead of going for purely electric cars, it offers consumers a choice with its sleek crossover hybrid SUV.
This innovative vehicle can be powered by gasoline or electricity, keeping drivers away who may not have a charging station or gas station nearby.
While just reaching NASDAQ in July of last year, the company has already seen its stock price almost triple since its inception.
The company’s forward-thinking approach to the industry and promising financial data has touched analysts, with up to 15 buy notes on the company and a potential price tag as high as $ 64 over the years. Next 12 months, depending on CNN forecast.
# 3 – Ford
Ford Motors (NYSE: F) is a Detroit veteranâ¦ and he certainly hasn’t ignored the dramatic increase in electric vehicles.
In addition to all-new electric versions of its bestsellers, the F-150 and the iconic Mustang, it is also carving out its own place in the hydrogen race.
In fact, it even recently unveiled the world’s very first fuel cell hybrid electric vehicle, the Ford Edge HySeries.
âThis vehicle offers Ford the ultimate in flexibility in researching advanced propulsion technologies,â said Gerhard Schmidt, vice president of research and advanced engineering for Ford Motor Company. âWe could take the fuel cell power system out and replace it with a diesel, gasoline, or other small-size powertrain connected to a small electric generator to generate electricity like the fuel cell now does. combustible. “
Thanks in large part to its green pivot, Ford’s stock price has skyrocketed this year. Since the start of 2021, the company’s share price has risen from $ 8.52 to its current price of $ 19, which represents a value increase of over 100%.
# 4 – Rivien
Last month, a California-based electric vehicle maker Rivian Automotive Inc. (NASDAQ: RIVN) has become the latest ultra-hyped electric vehicle maker to hit the market.
Rivian’s IPO was another success after the company managed to raise around $ 13.5 billion by selling 175.95 million shares at $ 78 apiece. The company’s shares would hit an intra-day high of $ 179.47 six days later before falling back to earth.
Although it is currently trading at just under $ 100 due to renewed Omicron concerns that have driven much of the market down, the company is starting to see some upward momentum again.
Why exactly did Rivian capture the imagination of Wall Street? Well, a lot of that is thanks to its robust pre-orders and transactions.
Ford, for example, paid a total of $ 820 million for Rivian’s B and D series offerings and also bought $ 415 million from the electric vehicle maker’s convertible debt offering. Those early investments are now worth more than $ 13 billion, which means Ford has a roughly 12% stake in Rivian and 10.5% of the voting rights.
Amazon Inc. (NASDAQ: AMZN) also jumped on board, participating in no less than four rounds of the Rivian fundraiser, paying $ 1.35 billion, and also bought $ 490 million in convertible debt before purchase of 2.56 million shares valued at $ 200 million at the time of the IPO. Globally, Amazon owns an 18.5% stake in Rivian after the IPO and holds 16.9% of the voting rights.
# 5 – Apple Inc.
We’ve all heard the rumorsâ¦ In fact, this is perhaps one of the worst kept secrets of all time.
The Apple car.
And the rumors are finally coming true
Apple (NASDAQ: AAPL) has reportedly set a goal of producing a fully autonomous car by 2025, although it has yet to announce a production partner for the self-driving car project anytime soon.
Nothing has given us a more impressive wealth generation story over the past two years than Tesla. It is certainly in this spirit that Apple – which has been back and forth around the Apple Car – seems to have taken things up a notch in the autonomous driving arena.
Earlier this year, Apple CEO Tim Cook finally open about the projectâ¦ and although many details remain unclear, Cook noted that he has great admiration for Tesla.
The trillion dollar question, however, is who will Apple partner with in its potentially revolutionary pivot to electric transit?
The rumor mill was inundated with guesses.
Hyundai was among the first to be mentioned … however, in early February it was revealed that the case failed.
Since then, other names have been droppedâ¦ including Taiwan Semiconductor and LG.
Even Magna, a Canadian mobility technology company, was tossed into the pot.
And while nothing has been confirmed, one thing is clear: Apple could be on the way to shake up the markets again.
It is already rapidly approaching a valuation of $ 3 trillion … but that could send it even higher.
In fact, if Apple were a country, it would be the sixth richest in the worldâ¦ and that could very well push it into the top 5.
Canadian companies are also looking to capitalize on the electric vehicle boom
GreenPower Motor Company (TSX: GPV) is an exciting company that produces electric transport on a larger scale. Right now, it’s mostly focused on the North American market, but the sky is the limit as the pressure to go green increases. GreenPower has been at the forefront of the electric movement, making affordable battery-powered electric buses and trucks for over a decade. From school buses to long-haul transit, GreenPower’s impact on the industry cannot be ignored.
Another way to gain indirect exposure to burgeoning tech, electric vehicle, and mineral industries is to AutoCanada (TSX: ACQ), a business that operates car dealerships across Canada. The company offers a wide variety of new and used vehicles and offers all types of financial options to meet the needs of any consumer. As sales have fallen this year due to the COVID-19 pandemic, AutoCanada is likely to experience a rebound as purchasing power and demand for electric vehicles increase. As exciting new electric vehicles hit the market, AutoCanada will surely be able to ride the wave.
Magna International (TSX: MG) was already making major strides in the battery market over a decade ago, investing over half a billion dollars in battery production while the market was still in its infancy. At the time, electric vehicles as we know them had barely entered the scene, with Tesla launching its first car just two years before.
Magna’s massive investment has paid off, however. Since its bet on the battery, the company has seen its valuation skyrocket to tens of billions of dollars and it has consolidated itself as one of the leaders in the industry.
Westport Fuel Systems (TSX: WRPT) is an important company to watch in the global energy transition. Especially since the world is rushing to leave behind traditional gasoline and diesel vehicles. Because it’s a crafting game at heart, it’s a unique way to profit from the boom in the alternative fuel automotive industry.
Westport Fuel has made major strides in the market over the past year, and its efforts are finally paying off. Since February 2020, the company has seen its stock price rise by 348%, and with more potential deals like the one it just struck with Amazon to supply natural gas trucks to its fleet, the stock has yet to more room to run. coming years.
By Michael Kern for Oil Octobers
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