- Electric vehicles (EVs) stocks are back in the limelight after Lucid Group and Tesla announced some major developments.
- Lucid said that it expects to receive funding and incentives of up to US$ 3.4 billion from Saudi Arabia.
- Vicinity Motor secured an order backlog of more than US$ 90 million in Q1 FY2022.
Electric vehicles (EVs) stocks are back in the limelight after Lucid Group (NASDAQ: LCID, LCID: US) and Tesla (NASDAQ: TSLA, TSLA: US) announced some major developments.
Lucid Group has announced its plans to construct its first manufacturing facility abroad in Saudi Arabia. The American EV company signed an agreement with the government of Saudi Arabia for this facility, AMP-2, which will have a local capacity of producing 155,000 EV units in a year.
Lucid added that it estimates to receive funding and incentives of up to US$ 3.4 billion, from the government of Saudi Arabia over the next 15 years to construct and operates the AMP-2 facility.
Tesla, on the other hand, said it has increased its production capabilities in the last few months with two new factories, Giga Berlin and Giga Texas.
With Lucid striking this major EV deal with Saudi Arabia and Tesla ramping up its production, let us look at three Canadian EV stocks.
Vicinity Motor Corp (TSXV: VMC)
Vicinity Motor Corp holds a market capitalization of C$ 79 million. The EV marker had a debt-to-equity (D/E) ratio of 0.21, which says that it mainly utilizes equity financing over debt.
Vicinity Motor secured an order backlog of more than US$ 90 million in Q1 FY2022. The junior EV manufacturer held cash and cash equivalents (CCE) of US$ 11 million on its balance sheet at the end of the latest quarter.
VCM stock plummeted by roughly 70 per cent in one year. The EV slipped by over 80 per cent compared to a 52-week high of C$ 10.15 (July 6, 2021). As per Refinitiv findings, VMC’s Relative Strength Index (RSI) value of 33.74 on May 19, just above the 30-mark, a bearish trend.
GreenPower Motor Company (TSXV: GPV)
GreenPower Motor Company currently has a market capitalization surpassing C$ 118 million. GreenPower Motor was also presented its all-electric EVs at the Advanced Clean Transportation Expo this year.
GPV stock plummeted by over 70 per cent in 12 months. Refinitiv data suggests that GPV is on a bearish trend with an RSI value of 28.02 and its Moving Average Convergence/ Divergence (MACD) indicator below the zero line.
Exro Technologies Inc (TSX: EXRO)
Though Exro Technologies is not an EV maker, it designs and commercializes electronic technologies for electric machines, including cars, trucks and buses, thus, serving the EV market. Such EV component suppliers are likely to benefit from the growing EV production.
EXRO stock tanked by almost 61 per cent in one year and fell by about 67 per cent from its 52-week high of C$ 4.34 (June 17, 2021). EXRO’s RSI was 51.66 on May 19, and its MACD indicator was nearing its zero line since April, as per Refinitiv
Investors should note that these Canadian EV stocks hold less market capitalization, and their valuation metrics are also negative, indicating a high risk. Growth stocks as such generally have a reputation for high risk, but they can provide notable returns if market situations favour them.
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.