LEV, VMC & GPV: 3 cheap EV stocks as Stellantis invests $2.8B in Canada

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LEV, VMC & GPV: 3 cheap EV stocks as Stellantis invests $2.8B in Canada

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LEV, VMC & GPV: 3 cheap EV stocks as Stellantis invests $2.8B in Canada
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Highlights

  • Stellantis NV plans to invest US$ 2.8 billion in two Canadian facilities to boost the production of EVs.
  • The funding is said to be a part of Stellantis’ US$ 35.5 billion commitment to electrifying the auto industry.
  • Canadian electric vehicle (EV) stocks like Lion Electric (TSX: LEV), Vicinity (TSXV: VMC) and GreenPower (TSXV: GPV) are likely to garner newfound interest.

Canadian electric vehicle (EV) stocks like Lion Electric (TSX: LEV), Vicinity (TSXV: VMC) and GreenPower (TSXV: GPV) are likely to garner newfound interest with automobile giant Stellantis NV making billion-dollar investments in the country.

The world-leading automaker said on Monday, May 2, that it plans to invest US$ 2.8 billion in two Canadian facilities to boost the production of EVs. The funding is said to be a part of Stellantis’ US$ 35.5 billion commitment to electrifying the auto industry and related programs.

Many countries, including Canada, are focused on promoting EVs to minimize climate change effects and attain their emission targets on time. Even battery minerals like lithium, nickel, etc., have been gaining from the EV momentum.

Let us check out these Canadian EV stocks, all priced under C$ 5, that have emerged as crucial players in the EV market.

Lion Electric Company (TSX: LEV)

Lion Electric Company announced last week that it plans to assist customers in securing up to US$ 375,000 per Lion Electric's bus in funding under the US Environmental Protection Agency (EPA) 's clean bus school program.

As per Refinitiv, Lion Electric's Relative Strength Index (RSI) value was hovering around the RSI value of 70 in June last year. However, the EV stock appears to have breached its support levels multiple times since then. According to the data, on May 2, its RSI stood at 29.80, thereby indicating an oversold condition. This EV stock plummeted by nearly 59 per cent in nine months.

Also read: CGI (GIB.A) and DSG: 2 TSX tech stocks to buy instead of Amazon (AMZN)?

Vicinity Motor Corp (TSXV: VMC)

Vicinity Motor Corp has recently signed a deal with service bus dealership company Soderholm Sales & Leasing Inc, which operates in Hawaii and the Pacific Islands. 

According to Refinitiv, VMC stock surpassed RSI of 70 in July 2021, indicating an overbought situation. As of writing, it had an RSI value of around 24 based on Refinitiv data. VMC scrip sank by about 67 per cent year-over-year (YoY).

GreenPower Motor Company (TSXV: GPV)

GreenPower Motor announced in March that its battery EVs qualify for coupons worth US$ 60,000 to US$ 375,000 per vehicle under the HVIP. This project is initiated by the California Air Resources Board (CARB).

GreenPower Motor's RSI dropped to 38.67 on May 2 after approaching an RSI of 80 in April, as per Refinitiv. GPV stock plunged by nearly 67 per cent in 12 months.

  LEV, VMC and GPV: 3 cheap EV stocks under $5 to buy in May

Bottomline

Lion Electric Company, Vicinity Motors and GreenPower Motors seem to be moving downward, as per their RSI values and Bollinger Bands®. However, some investors can find these EV stocks to be discounted at their current prices, considering they can see notable growth in the future.

Also read: IFC, FFH, CIX, GSY and IGM: 5 TSX financial stocks to buy in May 2022

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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