Missed Tesla’s record production numbers? 2 Best Electric Vehicle Stocks To Buy Now

The investment year 2022 is only a few days long. And already, by Tesla (NASDAQ: TSLA) Record production figures for the fourth quarter of 2021 and the full year are creating a buzz on Wall Street.

On Monday alone, Tesla’s stock price rose $ 143 per share or 14%, catapulting the stock just a few percentage points from an all-time high. Not only did Tesla’s results exceed expectations, it came amid a global chip shortage that plagued the auto industry throughout 2021.

Despite the impressive performance, there is reason to believe that Tesla’s $ 144 billion market cap gain on Monday was a bit too much. With a market cap now standing at $ 1.2 trillion, investors are paying a premium for Tesla’s future. It is the same Lucid group (NASDAQ: LCID) and Nio (NYSE: NIO). Here’s what makes these two stocks of electric cars better bought now, even though all three are expensive.

Image source: Tesla.

Expectations are set

Daniel Foelber (Lucid): Lucid has done investors a favor by setting expectations for 2022. Rich in cash following its merger with Churchill Capital IV and a recent senior note offering, Lucid has over $ 6 billion in cash that should help propel its business forward. production and pave the way for its first full year as a viable electric vehicle (EV) manufacturer.

2021 has been a banner year for Lucid which has proven the courage of the company in technology, engineering and design. Still, those qualities pale in comparison to the importance of mass production, a skill Tesla knows all too well is much easier said than done.

Lucid plans to produce and deliver 20,000 Lucid Airs in 2022. It has already ceased reservations for its Dream Edition sedan and is focusing on rolling out its Grand Touring, Touring and Air versions in 2022, as well as advancing its Gravity SUV.

Lucid will likely get a transmission of his financial numbers in 2022, given that everyone is told he won’t be generating significant income, let alone profits, for a few more years. However, all eyes will be on Lucid’s bookings, which currently stand at 17,000, as well as its success in developing and delivering all four versions of the Lucid Air on time and without complications. Doing so would support the investment thesis and chart a course for long-term growth.

2022 will be a pivotal year

Howard Smith (Nio): While Tesla is currently the clear leader in electric vehicle sales, investors may want to consider the stocks of smaller electric vehicle makers to buy before their businesses mature. Nio is already established and has the potential to expand into two important markets. Despite being a much smaller base, Nio shipments in 2021 were up 109% from Tesla’s 87% year-over-year growth.

2022 promises to be a pivotal year for Nio in several respects. It has increased its vehicle deliveries over the past two years, as the following graph shows.

Nio monthly deliveries of electric vehicles 2020/2021.

Data source: Nio. Chart by author.

2022 brings increased production capacity, new vehicle offers and a new establishment in Europe. Nio, along with its state-owned industrial partner, is working to double production capacity to at least 20,000 electric vehicles per month. This work should be completed this spring. As seen above, this would also equate to an approximate doubling of recent monthly delivery volumes.

Nio started sales in Norway last year and established a full operation there, including Nio community gathering places, and plans infrastructure for recharging and exchanging batteries. The company now plans to expand to Germany, the Netherlands, Sweden and Denmark in 2022.

Nio also announced the launch of three new products in 2022. Two have already been announced with the luxury sedan ET7 and the smaller ET5. The company plans to start shipping the ET7 in March 2022 and the ET5 by September. It is also potentially working on a partnership with the largest Chinese car maker, BYD, to develop a sub-brand with mass market appeal, according to industry follower CnEVPost.

2022 will undoubtedly be an important year for Nio. Investors who feel they’ve missed Tesla’s production ramp-up might want to look to Nio shares as the company looks to accelerate its own growth this year.

Tesla isn’t the only fast producer in town

Tesla’s numbers deserve praise as the company has gone from profitability and production issues to a fully loaded machine. However, Tesla’s output is still much lower than that of historic car makers. And companies like Lucid and Nio are showing signs that they can grow quickly, too.

The electric vehicle landscape has changed and Tesla is just the tip of the electric vehicle iceberg. With so many options available, investors can choose companies that pique their interest and match their risk tolerance.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


Source link

Comments are closed.