Cheap EV stocks to explore in the fourth quarter of 2021

Highlights

• Ford Motor Company’s (NYSE:F) revenue increased by 38 percent YoY in Q2, FY21.
• Fisker Inc’s (NYSE:FSR) revenue was US$27 thousand in Q2, FY21.
• Xpeng Inc. (NYSE:XPEV) delivered 25,666 vehicles in Q3, FY21.

The EV industry has attracted many investors in recent days. It is because the global push for clean energy gave a major boost to the sector. Besides EV manufacturers, ancillary industries like battery makers and clean energy companies have benefited from this shift.

Tesla leads the pack when it comes to EV manufacturing in terms of market capitalization. But many other relatively small companies are also drawing attention with their robust sales.

Tesla also commands higher stock prices. Hence, they are out of bounds for most small investors. Here we explore five cheap EV stocks that may grow in the future.

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Ford Motor Company (NYSE:F)

Ford Motor Company is an automobile manufacturing firm based in Dearborn, Michigan. It also has its interests in hybrid and electric vehicles.

The shares of the company traded at US$14.06 at 12:56 pm ET on October 6, down 1.61 percent from its closing price of October 5. Its stock value increased by 67.72 percent YTD.

The firm has a market cap of US$55.90 billion, a P/E ratio of 16.46, and a forward P/E one year of 8.99. Its EPS is US$0.85.

The highest and lowest stock prices for the last 52-week were US$16.45 and US$6.96, respectively. Its trading volume was 55,915,800 on October 5.

The company is expected to release its Q3 results on October 27.

Its revenue increased by 38 percent YoY to US$26.8 billion in Q2, FY21. The net income came in at US$0.6 billion compared to US$1.1 billion in Q2, FY20.

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Source: Pixabay

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Arrival (NASDAQ:ARVL)

Arrival Ltd. is a Luxembourg-based electric vehicle manufacturer that designs and produces affordable electric vehicles.

The stock was priced at US$12.53 at 1:06 pm ET on October 6, down by 0.7 percent from its previous closing price. The ARVL stock fell 52.54 percent YTD.

The market cap is US$7.78 billion. Its highest and lowest stock prices for the last 52 weeks were US$24.98 and US$10.00, respectively. On Tuesday, its share volume was 1,014,224.

Arrival Ltd. reported a loss of €38.67 million in Q2, FY21, compared to a loss of €11.42 million in the year-ago quarter.

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Canoo Inc (NASDAQ:GOEV)

Canoo Inc is a Torrance, California-based startup that manufactures electric vehicles. It plans to manufacture commercial electric vans for vehicle rentals and related services.

Its shares traded at US$6.64 at 1:13 pm ET on October 6, down 3.35 percent from its closing price of October 5. Its stock value declined 45.04 percent YTD.

The firm has a market cap of US$1.56 billion and a forward P/E one year of -3.63. Its highest and lowest stock prices for the last 52 weeks were US$24.90 and US$5.75, respectively. On October 5, its trading volume was 2,194,303.

The company's loss from operations was US$104.34 million in Q2, FY21, compared to US$19.80 million in the same quarter of the previous year. In addition, it reported a net and comprehensive loss of US$112.55 million against a loss of US$23.24 million in Q2, FY20.

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Fisker Inc. (NYSE:FSR)

Fisker Inc. is an electric vehicle manufacturer based in Manhattan Beach, California. It is developing a technology-enabled automotive business model for the EV industry.

The stock was priced at US$13.88 at 1:20 pm ET on October 6, down 1.21 percent from its previous closing price. The FSR stock plunged 7.5 percent YTD.

The market cap of the company is US$4.12 billion, and the forward P/E one year is -13.91. The highest and lowest stock prices for the last 52 weeks were US$31.96 and US$8.70, respectively. Its share volume on October 5 was 4,913,268.

The company's revenue was US$27 thousand in Q2, FY21, compared to US$22 thousand in the previous quarter. It reported a net loss of US$46.22 million compared to a loss of US$176.84 million in Q1, FY21.

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Source: Pixabay

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Xpeng Inc. (NYSE:XPEV)

Xpeng is a Guangzhou, China-based electric vehicle maker. It designs and manufactures smart electric vehicles.

Its shares traded at US$35.76 at 1:26 pm ET on October 6, up 0.68 percent from its closing price of October 5. Its stock value decreased by 19.46 percent YTD. The firm has a market cap of US$30.55 billion and a forward P/E one year of -36.24. Its EPS is US$-1.29.

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The highest and lowest stock prices for the last 52 weeks were US$74.49 and US$18.50, respectively. Its trading volume was 5,425,304 on October 5.

The firm delivered 10,412 vehicles in September 2021, representing an increase of 199 percent YoY. In Q3, FY21, it delivered 25,666 vehicles, an increase of 199 percent YoY.

The company's total revenue was RMB3.76 billion in Q2, FY21, compared to RMB590.78 million in the previous year's same quarter. Its net loss came in at RMB1.19 billion compared to RMB146.04 million in Q2, FY20.

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Bottomline

The EV sector has witnessed solid growth due to the global shift to zero-emission vehicles. The US government has set a target of at least 50 percent of all automobiles sold by 2030 to be clean energy vehicles. China, the world’s largest vehicle market, is also looking at more zero-emission cars in the country. In addition, Europe has set a target to reduce carbon emissions by 55% by 2030 and 100% by 2035. However, irrespective of these promising developments for EVs, investors should evaluate the firms carefully before investing in stocks.