TSLA to RIVN: Can these 5 EV stocks fight off inflationary pressure?

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TSLA to RIVN: Can these 5 EV stocks fight off inflationary pressure?

 TSLA to RIVN: Can these 5 EV stocks fight off inflationary pressure?
Image source: © Melpomenem | Megapixl.com

Highlights:

  • Tesla, Inc.’s (NASDAQ: TSLA) monthly EV production hit an all-time high in June 2022.
  • Chinese EV maker NIO Inc.’s (NYSE: NIO) vehicle delivery surged 60% YoY in June 2022.
  • Rivian Automotive, Inc. (NASDAQ: RIVN) will report its fiscal Q2 results on Aug 11.

With rising gasoline prices driving up US inflation, it might be a boon for the electric vehicle sector as buyers could be wary of investing in fossil-fuel-driven vehicles, which could burn a hole in their pockets.

US CPI inflation hit a new record of 9.1% in June, the highest since 1981, accelerated by higher gasoline and food costs. It comes as US inflation is already at a 40-year high for the previous three consecutive months. US gasoline prices averaged over US$5 per gallon last month.

Moreover, higher productions and deliveries of the leading EV manufacturers in recent months suggest the demand has been consistently increasing, strengthening confidence in the industry amid a weak economic environment.

Besides, the perils of climate change have already pushed the urgency for finding alternative mobility solutions. Against this backdrop, EV stocks could be worth exploring as they may find themselves on the right side of the government policy agenda in the coming days.

Here we explore some top EV stocks worth considering amid the inflationary pressure.

Tesla, Inc. (NASDAQ: TSLA)

Tesla is one of the leading EV makers based in Austin, Texas. It also manufactures battery energy storage systems, solar panels, etc.

Its shares traded at US$722.82 at 1:28 pm ET on July 13, up 3.38% from their closing price of July 12. Its stock value decreased by 41.72% YTD.

Tesla has a market cap of US$748.52 billion, a P/E ratio of 98.13, and a forward one-year P/E ratio of 68.75. Its EPS is US$7.37. The 52-week highest and lowest stock prices were US$1,243.49 and US$620.57, respectively. Its trading volume was 29,310,320 on July 12.

The company produced 258,000 vehicles and delivered over 254,000 vehicles in Q2. June was the highest vehicle production month in the company's history, it said.

The company will report its Q2, FY22, results on July 20.

In Q1, FY22, its revenue was US$18.75 billion, and its net income was US$3.28 billion.

Top EV stocks to watch after inflation dataSource: Pixabay

Canoo Inc. (NASDAQ: GOEV)

Canoo is a Bentonville, Arkansas-based automotive firm specializing in electric vehicles. It recently received orders for 4,500 electric vehicles from the global retail giant, Walmart.

The stock traded at US$3.295 at 1:34 pm ET on July 13, down 9.23% from its previous close. The GOEV stock fell 55.24% YTD. Its market cap is US$839.09 million, and the forward one-year P/E ratio is -1.70. Its EPS is US$-1.99.

The stock touched the highest price of US$13.35 and the lowest price of US$1.75 in the last 52 weeks. Its share volume on July 12 was 173,979,100.

The company reported zero revenue in Q1, FY22, and its net and comprehensive losses were US$125.36 million, against a loss of US$15.22 million in the year-ago quarter.

NIO Inc. (NYSE: NIO)

NIO is a Chinese automobile manufacturer specializing in EVs. It is based in Shanghai, China.

Its shares traded at US$21.385 at pm ET on July 13, up 2.47% from their closing price of July 12. Its stock value declined 37.65% YTD. NIO has a market cap of US$35.73 billion, and a forward one-year P/E ratio of -33.13. Its EPS is US$-0.74.

The 52-week highest and lowest stock prices were US$47.38 and US$11.67, respectively. Its trading volume was 49,780,840 on July 12.

The company delivered 25,059 vehicles in Q2, FY22, representing an increase of 14.4% YoY, of which 12,961 vehicles were delivered in June alone, up 60.3% YoY.

Its revenue rose 24.2% YoY to RMB 9.91 billion (US$1.56 billion) in Q1, FY22, and its net loss was RMB 1.78 billion (US$281.2 million).

Rivian Automotive, Inc. (NASDAQ: RIVN)

Rivian is an EV maker based in Irvine, California.

The stock traded at US$30.75 at 1:51 pm ET on July 13, up 1.99% from its previous closing price. The RIVN stock tumbled 70.65% YTD.

Its market cap is US$27.69 billion, and the forward one-year P/E ratio is -4.72.

The stock touched the highest price of US$179.47 and the lowest price of US$19.25 in the last 52 weeks. Its share volume on July 12 was 15,862,040.

The company will report its Q2, FY22 financial results on August 11.

Meanwhile, in Q1, FY22, its revenue was US$95 million, and its net loss was US$1.59 billion.

EV stocks: TSLA, GOEV, NIO, RIVN, XPEV

XPeng Inc. (NYSE: XPEV)

XPeng is another Chinese EV maker based in Guangzhou, China.

Its shares traded at US$30.04 at 1:55 pm ET on July 13, up 2.77% from their closing price of July 12. Its stock value plunged 41.85% YTD. XPeng has a market cap of US$25.67 billion, and a forward one-year P/E ratio of -20.58. Its EPS is US$-1.08.

The 52-week highest and lowest stock prices were US$56.45 and US$18.01, respectively. Its trading volume was 5,489,696 on July 12.

The company’s revenue soared 152.6% YoY to RMB 7.45 billion (US$1.17 billion) in Q1, FY22. Its net loss was RMB 1.70 billion (US$268.3 million), compared to a loss of RMB 786.6 million (~US$117 million) in Q1, FY21.

Bottom line:

The covid lockdowns in China, the world’s biggest EV market, had adversely impacted the sales of electric vehicle makers. They also had to contend with supply chain disruptions. But EV sales are gradually picking up with the easing of restrictions. However, investors should carefully evaluate the companies before investing in the stock market.

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