Top EV stocks to watch as White House mulls tax credit

Highlights

  • NIO Inc. (NYSE: NIO) delivered 3,667 vehicles in October.

  • Xpeng Inc. (NYSE: XPEV) has delivered 10,138 vehicles in October 2021.

  • The total revenue of Tesla, Inc. (NASDAQ: TSLA) rose 57% YoY in Q3, FY21.

The EV market is one of the sectors that investors have been keeping a close watch on lately.

Earlier this year, President Joe Biden had set a target to make half of all automobiles sold by 2030 energy vehicles.

In addition, his administration had recently unveiled a US$1.85 trillion plan for the next few years to tackle issues like climate change, including a focus on clean energy vehicles.

So, here we discuss the top five EV stocks that will benefit from the clean energy transition.

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NIO Inc. (NYSE: NIO)

NIO is an automobile manufacturing company based in Shanghai, China. It manufactures electric vehicles.

Top EV Stocks to Watch as White House Mulls Tax Credit

The shares of the company traded at US$40.4599 at 1:04 pm ET on November 1, up 2.66% from their closing price of October 29. Its stock value tumbled 26.32% YTD. The firm has a market cap of US$66.43 billion and a forward P/E one year of -49.89. Its EPS is US$-0.85.

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The 52-week highest and lowest stock prices were US$66.99 and US$30.03, respectively. Its trading volume was 33,423,090 on October 29.

The company will release its third-quarter financial results on November 9 after the closing bell.

NIO released its October vehicle delivery report on Monday, which showed that it delivered 3,667 vehicles last month, representing a decline of 27.5% YoY.

The company's total revenue was RMB8.44 billion in Q2, FY21, compared to RMB3.71 billion a year ago. Its net loss was RMB585.35 million against a loss of RMB1.17 billion in Q2, FY20.

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Electric Vehicle Stocks: NIO, XPEV, TSLA, Ford, GM

Xpeng Inc. (NYSE: XPEV)

Xpeng is a Guangzhou, China-based electric vehicle manufacturer that manufactures electric vehicles like SUVs, sedans, etc. The stock was priced at US$47.11 at 1:12 pm ET on November 1, up 1.03% from its previous closing price. The XPEV stock rose 5.74% YTD. The market cap of the company is US$40.52 billion, and the forward P/E one year is -47.58. Its EPS is US$-1.29.

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The stock saw the highest price of US$74.49 and the lowest price of US$19.21 in the last 52 weeks. Its share volume on October 29 was 6,551,467.

The company has delivered 10,138 vehicles in October 2021, an increase of 233% YoY. It delivered 66,542 this year through October, representing an increase of 289% YoY.

Its revenue surged 536.7% YoY to RMB3.76 billion in Q2, FY21. Its net loss came in at RMB1.19 billion, compared to a loss of RMB146 million in the same quarter of the previous year.

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Tesla, Inc. (NASDAQ: TSLA)

Tesla is one of the world’s leading electric vehicle manufacturers based in Palo Alto, California. It also has interests in the clean energy sector.

The shares of the company traded at US$1175.024 at 1:27 pm ET on October November 1, up 5.48% from their closing price of October 29. Its stock value increased by 52.65% YTD.

It has a market cap of US$1.18 trillion, a P/E ratio of 383.08, and a forward P/E one year of 278.50. Its EPS is US$3.09. The 52-week highest and lowest stock prices were US$1,115.21 and US$379.11, respectively. Its trading volume was 29,918,420 on October 29.

The total revenue surged 57% YoY to US$13.75 billion in Q3, FY21. On a GAAP basis, its net income attributable to common shareholders was US$1.61 billion, up 389% YoY.

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Ford Motor Company (NYSE: F)

Ford is an automobile manufacturing company based in Dearborn, Michigan. It manufactures electric vehicles. The stock was priced at US$17.765 at pm ET on November 1, up 4.01% from its previous closing price. The stock value of Ford grew by 100.47% YTD.

The market cap is US$70.99 billion, the P/E ratio is 25.38, and the forward P/E one year is 10.11. Its EPS is US$0.70. The stock saw the highest price of US$17.58 and the lowest price of US$7.61 in the last 52 weeks. Its share volume on October 29 was 100,560,700.

The company's revenue was US$35.68 billion in Q3, FY21, compared to US$37.50 billion in the same quarter of the previous year. Its net income came in at US$1.82 billion, compared to US$2.39 billion in Q3, FY20.

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Electric vehicle stocks to explore in November

Source: Pixabay

General Motors Company (NYSE: GM)

General Motors is an automobile manufacturer based in Detroit, Michigan. It manufactures trucks, crossovers, cars, and automobile parts. It also makes EVs.

The shares of the company traded at US$55.45 at 1:39 pm ET on October November 1, up 1.87% from their closing price of October 29. Its stock jumped 34.36% YTD. It has a market cap of US$80.22 billion, a P/E ratio of 7.39, and a forward P/E one year of 8.34. Its EPS is US$7.48.

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The 52-week highest and lowest stock prices were US$64.30 and US$33.96, respectively. Its trading volume was 16,680,740 on October 29.

The company's revenue decreased by US$8.70 billion YoY to US$26.77 billion in Q3, FY21. Its net income attributable to common stockholders came in at US$2.42 billion, compared to US$4.04 billion in the same quarter of the previous year.

The company now expects its full fiscal year diluted EPS to be between US$5.52 and US$6.52 while projecting its net income to be between US$8.1 billion and US$9.6 billion.

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Bottomline

The US Congress is planning a new US$12,500 tax credit that will include US$4,500 for EVs and US$500 for batteries made in the US. In addition, only US-made vehicles will be eligible for tax credit after 2027, according to a recent White House proposal. It is expected to boost EV sales in the country. However, investors should closely evaluate the companies and market volatilities before investing in stocks.

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