5 US electric vehicle stocks to watch in November

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 5 US electric vehicle stocks to watch in November
Image source: © Leowolfert | Megapixl.com

Highlights:

  • The automotive revenue of Tesla, Inc. (NASDAQ: TSLA) rose 55 per cent YoY in Q3 FY22.
  • The total vehicle delivery of NIO Inc. (NYSE: NIO) rose over 174 per cent YoY in October.
  • The vehicle production of Lucid Group more than tripled in Q3 compared to the previous quarter.

The electric vehicle or EV companies seem to have gained traction around the globe, with a flurry of favorable incentives from the governments aimed at the sector.

The sector, which was already growing for some years, seems to have gained popularity in recent years, with concerns over climate change and chronic energy shortages hovering over the market.

Although the first name that comes while talking about the sector is Tesla, Inc. (NASDAQ: TSLA), there are several other firms that are climbing up the ranks in recent days. Some of the other popular EV stocks include NIO Inc. (NYSE: NIO), ChargePoint Holdings, Inc. (NYSE: CHPT), QuantumScape Corporation (NYSE: QS), and Lucid Group, Inc. (NASDAQ: LCID).

The oil prices this year, bumped up by the Russia-Ukraine war and other macroeconomic factors, have been another reason that has forced many consumers to shift their focus to the EV sector.

Meanwhile, many investors think that investing in the EV sector is only putting their bets on electric-powered automobile vehicles. But one could widen their portfolio into the sector by investing in different segments, like EV makers, battery producers for EVs, battery component suppliers, and even the companies that operate the charging stations for the vehicles.

However, the soaring costs and other hovering uncertainties in the market have disrupted most of the sectors in recent years, while raising concerns over a potential recession:

Let's explore the performances of these EV stocks and their financial highlights amid the hovering concerns in the broader market:

Tesla, Inc. (NASDAQ: TSLA)

The leading automotive and clean energy company, Tesla made its debut in the US market in 2010, at around US$ 17 per share. Since then, the company had noted significant growth in its price.

The stock of the company, which manufactures EVs, battery storage solutions, and other related products, fell over 38 per cent YTD and 46 per cent YoY. In the running quarter, it lost over 18 per cent after closing at US$ 215.31 on November 3 and touched its 52-week low of US$ 198.5863 on October 24, 2022.

The TSLA stock's 5-day trading volume average was 62,600,938 through Thursday, November 3. Meanwhile, according to its Q3 FY22 earnings release, Tesla Inc's revenue jumped 56 per cent YoY to US$ 21.45 billion, and GAAP diluted EPS available to common stockholders soared 98 per cent YoY to US$ 0.95 apiece.

Notably, the automotive revenue of the firm rose 55 per cent YoY to US$ 18.69 billion and it delivered 343,830 vehicles in the quarter, up 42 per cent YoY.

NIO Inc. (NYSE: NIO)

The Hefei, China-based EV designer and manufacturer, Nio Inc holds a market capitalization of around US$ 16.6 billion. The stock of the Chinese EV manufacturing firm fell over 68 per cent YTD and around 76 per cent YoY.

The stock gained about two per cent this week through Thursday, November 3, after closing at US$ 9.94. It touched its 52-week low of US$ 8.375 on the same date as TSLA stock.

The company plans to announce its Q3 FY22 earnings results on Thursday, November 10, before the opening bell of the US market.

Meanwhile, in October, the EV maker's total vehicle delivery rose 174.3 per cent YoY to 10,059, and on a YTD basis, its total delivery was up 32 per cent YoY to 92,493 vehicles.

In Q2 FY22, NIO Inc's revenue was up 21.8 per cent YoY and 3.9 per cent QoQ to RMB 10.29 billion or US$ 1.53 billion, and its net loss surged 369.6 per cent YoY and 54.7 per cent QoQ to RMB 2.75 billion or US$ 411.7 million.

ChargePoint Holdings, Inc. (NYSE: CHPT)

The EV infrastructure firm, ChargePoint Holding's market cap was US$ 4.43 billion after closing at US$ 13.04 on November 3. The stock of the major online network operator of EV charging stations fell about 31 per cent YTD and 47 per cent YoY.

ChargePoint Holdings Inc's revenue grew 93 per cent YoY to US$ 108 million in Q2 FY23, and its diluted net loss was US$ 0.28 per share, compared to a loss of US$ 0.29 apiece in Q2 FY22.

The company said that it was the first time it has crossed the US$ 100 million mark for its revenue.

QuantumScape Corporation (NYSE: QS)

The solid-state battery developer, QuantumScape Corporation's market cap was US$ 3.54 billion at its close of US$ 8.11 on November 3. The stock of the firm, which develops solid-state lithium metal batteries for EVs, slipped over 63 per cent YTD and 74 per cent YoY.

It has also touched its 52-week low of US$ 7.6 on the same date as TSLA and NIO. In Q3 FY22, QuantumScape Corporation's net loss was US$ 117.66 million, versus an income of US$ 15.35 million in Q3 FY21.

Second quarter earnings highlights of Lucid Group Inc. (LCID)Source: ©Kalkine Media®; © Canva via Canva.com

Lucid Group, Inc. (NASDAQ: LCID)

Another EV maker, Lucid Group's stock closed at US$ 13.64 on November 3, and its market cap was about US$ 22.82 billion. The stock of the luxury electric car producer tumbled about 64 per cent YTD and 62 per cent YoY.

Lucid's total vehicle production was 2,282 in Q3 FY22, which was more than triple from the prior quarter. Its Q3 financials results would come out on November 8, 2022. In Q2 FY22, the Newark-based EV maker's revenue was US$ 97.3 million on deliveries of 679 vehicles.

Bottom line:

Investors should know that the EV sector was no exception amid the unprecedented challenges in the market. Since the stocks also didn't outperform, investors grew concerned that a slowdown in the economy might hurt the demand in the EV industry.

The high inflation and Fed's effort in bringing down the inflation have also weighed on the EV sector, the latest of which was seen on November 2, when the Federal Reserve unveiled another 75 bps point hike.

But the global push towards the clean energy sector seems to have helped in the growing popularity of electric cars. But the consumer spirits seem to have waned in recent days, due to concerns about the future of the economy.

Tesla has recently announced that they are trimming the car prices in China, due to a cooling in demand and mounting woes over a potential recession.

The concerns that the global recession fears would continue to impact the equity market have forced many investors to stay on the sideline in recent months.

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