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- As more and more auto companies go the electric way, stocks in the space are the flavour of season.
- Many traditional car companies too have invested heavily on building infrastructure necessary to make a move towards electric vehicles.
The world is moving towards more sustainable energy forms. Countries around the world have been providing policy support for companies to change over to alternative energy and cut down carbon imprints. Car companies too have invested heavily on building the infrastructure necessary to make a move towards electric vehicles.
Here is a look at 7 global stocks of electric vehicle manufacturers and battery companies that could be the flavour of 2021.
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Tesla has been the biggest name in the electric vehicle (EV) business in the automobile sector. In 2020 alone, the company’s market capitalisation increased by over $550 billion and is now near to $700 billion.
Though the company was slightly below the target of delivering 500,000 cars in 2020, it is still aiming for a 50 per cent growth in average annual deliveries in 2021. Tesla’s more revamped facilities in Fremont and increase of scale in the Shanghai factory would help it in upping its electric game further.
As new players enter the EV market, Tesla would become the benchmark for developing growth strategies for new companies. Tesla Inc (NASDAQ: TSLA) stocks closed at USD 686.44 on 2 March 2021.
The Chinese company has found an incredible way to solve the problem of expensive EV batteries. It sells battery services on the subscription model. This not only reduces the initial costs for carmakers but also assures a regular stream of income for Nio as customers would keep subscribing for batteries. For a monthly fee of about $142.
In January 2021, NIO delivered 7,225 EVs. For Q4 2020, sales increased significantly. However, it posted a net loss of $212.8 million in the quarter ended December. For the ongoing quarter, the company expects deliveries between 20,000 and 20,500 units.
With the launch of its flagship sedan ET7, the company has cemented its position as Tesla’s biggest challenger in the EV space. Nio is planning to launch both in European and the US markets soon. Nio Inc – ADR (NYSE: NIO) closed at USD 43.29 on 2 March 2021.
Copyright © 2021 Kalkine Media Pty Ltd.
Aston Martin (LON: AML)
Aston Martin plans to have 90 per cent of its fleet electrified by 2030. However, beyond the UK, it will continue to manufacture ICE-cars. As part of its transformative business model, the company would first manufacture plug-in hybrid models before going fully electric. A fully electric variant might be launched around 2025.
The company’s first electric variant would be the DBX plug-in hybrid SUV which is expected to be launched in 2023. Aston Martin is expected to gain from the recently announced partnership with Mercedes Benz, which has a 20 per cent stake in the company, for technical expertise. Aston Martin Lagonda Global Holdings Plc was trading at GBX 2,018.00 at 8:47 AM GMT +1 on 3 March 2021 at LSE.
Rolls-Royce Holdings Plc (LON: RR)
The company has said that it would go directly into electric without first going for plug-in variants. Though the company has not announced any plans for any immediate launch, but it might take a long-term view on the technology. Rolls-Royce Holdings Plc was trading at GBX 112.10 at 8:48 AM GMT +1 on 3 March 2021 at LSE.
Switchback Energy Acquisition Corp/ ChargePoint Holdings, Inc.
Batteries are the most important part on an EV, and that is why stocks of charging companies gain favour. ChargePoint, the biggest chain of EV charging stations, has recently merged with Switchback Energy Acquisition.
For 2020, ChargePoint has projected a revenue of $135 million and is aiming for $2 billion in revenue by 2027. A network of already existing charging points across 14 countries and more capital being pumped into the company post-merger, will make Switchback Energy an interesting stock to watch out for. ChargePoint Holdings Inc (NYSE: CHPT) closed at USD 28.50 on 2 March 2021.
Scottish Mortgage Investment Trust Plc (LON: SMT)
The fund holds EV stocks of both Tesla and Nio as its top five holdings. The firm is focused on long-term investments in interesting new technologies and new businesses that are highly competitive.
The trust has grown over 400 per cent in the last five years and grew 110 per cent in the last year. This trust’s long-term outlook for the EV market makes it a different kind of stock to look at if one is exploring EV stocks. Scottish Mortgage Investment Trust Plc was trading at GBX 1,200.00 at 8:55 AM GMT +1 on 3 March 2021 at LSE.
Royal Dutch Shell (LON: RDSA)
The oil behemoth has been making organic growth into the alternative energy space. Traditionally focused on the crude oil business, the company offers services like electric charging and hydrogen cell refuelling. It has also acquired Ubitricity, the UK’s largest street electric vehicle charging network.
The company has also recently announced acquisition of Germany-based virtual power plant operator Next Kraftwerke. As part of the deal, Shell would be able to have access to the 10,000 off-grid units that the German company helps to connect and manage.
It has also acquired First Utility, virtual power plant company Limejump and a German energy storage firm Sonnen. Royal Dutch Shell Plc was trading at GBX 1,488.80 at 8:55 AM GMT +1 on 3 March 2021 at LSE.