Top EV stocks to explore as nations set emissions reduction target

The electric vehicle industry received a major boost after the UN conference of parties or COP26 recently set new targets for pollution reduction.

The countries aim to reduce greenhouse gas emissions by 30% from the 2020 levels. The COP26 summit in Glasgow, Scotland, also called for stopping deforestation.

The EV sector is expected to receive billions of dollars of investments as the focus turn to clean energy vehicles. Besides building the EV infrastructure, the funds will also help create new jobs.

Here we discuss five EV stocks that may benefit from the policy changes.


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General Motors Company (NYSE: GM)

General Motors is a Detroit, Michigan-based automobile manufacturing company. It plans to launch several electric vehicle models by 2025.

The shares of the company traded at US$55.745 at 12:29 pm ET on Nov 2, up 0.48% from their previous close. The stock price increased by 36.98% YTD. GM has a market cap of US$80.50 billion, a P/E ratio of 7.41, and a forward P/E one year of 8.54. Its EPS is US$7.48.

Top EV stocks to explore as nations set emissions reduction target

The 52-week highest and lowest stock prices were US$64.30 and US$34.23, respectively. Its trading volume was 15,677,570 on Nov 1.

GM’s revenue was US$26.77 billion in Q3, FY21, compared to US$35.48 billion in the same quarter of the previous year. Its net income attributable to shareholders was US$2.42 billion, compared to US$4.04 billion in Q3, FY20.

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Li Auto Inc. (NASDAQ: LI)

Li Auto is a Chinese automobile manufacturing company. It designs and manufactures smart electric vehicles.

The stock was priced at US$31.22 at 12:33 pm ET on Nov 2, down 3.49% from its previous close. The LI stock fell 0.37% YTD. Its market cap is US$32.56 billion, and the forward P/E one year is -359.33. Its EPS is US$-0.16. The stock saw the highest price of US$47.70 and the lowest price of US$15.98 in the last 52 weeks. Its share volume on Nov 1 was 6,412,188.

The company delivered 7,649 Li ONE vehicles in October 2021, an increase of 107.2% YoY. The company has 162 retail stores in 86 cities and 223 service centers as of Oct 31, 2021.

Its revenue surged 40.9% YoY to RMB5.04 billion in Q2, FY21, while its net loss fell by 34.6% to RMB235.5 million.

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Xpeng Inc. (NYSE: XPEV)

XPeng is an electric vehicle manufacturing company based in Guangzhou, China.

The shares of the company traded at US$46.28 at 12:40 pm ET on Nov 2, down 3.32% from their previous close. The stock value ticked up 8.55% YTD. It has a market cap of US$39.86 billion, and a forward P/E one year of -48.85. Its EPS is US$-1.29.

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The 52-week highest and lowest stock prices were US$74.49 and US$20.25, respectively. Its trading volume was 20,155,050 on Nov 1.

XPeng will release its third-quarter financial results on Nov 23 before the opening bell. In October 2021, the company delivered 10,138 vehicles, an increase of 233% YoY.

In the second quarter, the company's revenue increased by 536.7% YoY to RMB3.76 billion, while its net loss came in at RMB1.19 billion, compared to a loss of RMB146 million in Q2, FY20.

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ChargePoint Holdings, Inc. (NYSE: CHPT)

ChargePoint is an electric vehicle infrastructure company based in Campbell, California, and owns EV charging stations in various countries. The stock was priced at US$24.46 at 12:47 pm ET on Nov 2, down 4.68% from its previous close. The stock tumbled 30.23% YTD.

Its market cap is US$7.92 billion, and the forward P/E one year is -36.14. The stock saw the highest price of US$49.48 and the lowest price of US$13.01 in the last 52 weeks. Its share volume on Nov 1 was 10,169,180.

The company's revenue jumped 61% YoY to US$56.12 million in Q2, FY22. It reported a net loss of US$84.93 million, versus a loss of US$35.28 million in Q2, FY21.

ChargePoint also raised its full fiscal revenue guidance by 15% to between US$225 million and US$235 million.

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EV stocks to watch after COP26 summit

Source: Pixabay

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Microvast Holdings, Inc. (NASDAQ: MVST)

Microvast is a battery manufacturing company based in Stafford, Texas. It produces lithium-ion batteries for EVs. Its shares traded at US$8.445 at 12:53 pm ET on Nov 2, down 5.11% from their previous closing price. The stock value fell by 42.32% YTD.

It has a market cap of US$2.53 billion and a forward P/E one year of -44.50. The 52-week highest and lowest stock prices were US$25.20 and US$7.38, respectively. Its trading volume was 3,231,543 on Nov 1.

Microvast will report its third-quarter financial results on Nov 15 after the closing bell.

Meanwhile, in the second quarter of fiscal 2021, its revenue rose 53.8% YoY to US$33.4 million, while its net loss was US$27.1 million, compared to a loss of US$7.9 million in Q2, FY20.

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Bottomline

All major global automobile companies are transitioning to electric vehicles as governments set national emission targets. The global EV industry is expected to grow at a rapid pace over the next few years as research and investments have been ramped up to meet the goals.

At the recent COP26 summit, Tata Motor's Jaguar Land Rover offered EV fleet services to ferry the global leaders to the venue. However, investors should evaluate the companies carefully before investing in stocks.

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