EV and battery stocks to keep an eye on

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EV and battery stocks to keep an eye on

 EV and battery stocks to keep an eye on
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Summary

  • NIO Inc. (NYSE: NIO) appoints Ms. Yu Long as independent director. Its stock has given 204% return in one year.
  • Albemarle Corp. (NYSE: ALB) announced opening of Battery Material Innovation Centre (BMIC) at Kings Mountain North Carolina recently. Its stock witnessed 123% growth in one year.
  • Lithium Americas Corp. (NYSE: LAC) stock rose 174% in one year. On Monday, it announced to acquire 42,857,143 subscription receipts of Arena Minerals Inc.in private placement.

Batteries are a back-up source of energy in a smaller and compact form. Currently, the focus is on clean and green energy, but this energy can not be used anytime and anywhere if not stored. Battery solves this challenge. Hospitals, healthcare instruments, military, logistics, and household appliances are few of the avenues for battery use among many others.

Here, we explore few battery stocks and how they are faring.

NIO Inc. (NYSE: NIO) was in Shanghai, China, founded in 2014 and manufactures electric vehicles. NIO has a market capitalization of US$74.5 billion.

NIO’s revenue for the first quarter of 2021 was US$ 1.22 billion, a 481.8% increase compared to revenue in the same quarter of 2020. Its net loss attributable to ordinary shareholders was US$ 744.1 million in Q1, 2021, an increase of 183% year-over-year.

The company’s June quarter delivery surged by 111.9% YoY to 21,896 vehicles. On Monday, it announced the appointment of Ms. Yu Long as a new independent director to the company’s board, effective from July 12. NIO’s stock has made a huge gain of 204% in one year. The share closed at US$45.53 in the previous session, July 9, 2021.

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Source: Pixabay.

Tesla, Inc. (NASDAQ: TSLA) is a US$ 632.86 billion market capitalized company with a P/E ratio of 656.95. It is vertically integrated sustainable energy company. Tesla’s segments are automation, energy generation and storage. It is engaged in designing, manufacturing, leasing, and selling electric vehicles, and in energy generation and storage systems.

In the quarter ended March 31, 2021, the company earned revenue of US$ 10.39 billion and net income of US$ 438 million. Revenue was US$ 5.99 billion and net income attributable to common stockholder was US$ 16 million in the same period previous year. Its net income per share diluted increased from US$ 0.02 in March quarter 2020 to US$ 0.39 this year March quarter.

Tesla stock gave nearly 119% in one year and closed at US$ 656.95 in the previous trading session on July 7, 2021.

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Albemarle Corporation (NYSE: ALB) is an American lithium producer. Lithium is used in various batteries, including those used for electric vehicles. With the growth of the EV sector, lithium producers are in demand, the primary reason of their stock growth.

Albemarle has a market capitalization of US$22.4 billion and a P/E ratio of 57.32.

For the first quarter of 2021, its net sales were US$ 829.3 million, 12% increase from net sales of US$ 738.8 million in same quarter of 2020. Its net income attributable to company was US$ 95.68 million in March quarter of 2021 compared to US$ 107.2 million in the same quarter previous year, a decrease of 11%. Its diluted earnings per share were US$ 0.84, a 17% decrease YOY.

Alb has recently announced opening of Battery Material Innovation Centre (BMIC) at Kings Mountain North Carolina.

The stock price has witnessed a growth of 123% over one year. The share closed at US$ 175.51 on July 9, 2021.



Source: Pixabay

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Sociedad Quimica y Minera S.A. (NYSE: SQM) is a Santiago, Chile-based commodity producer. It produces a variety of products including lithium and iodine. Lithium is in high demand due to the growth the electric vehicle market, which require lithium battery.

It has a market capitalization of US$ 13.22 billion and a P/E ratio of 70.72.

For the quarter ended March 31, 2021, its revenue was US$ 528.5 million compared to US$ 392.0 million in the same quarter of 2021, reflecting 34.8% increase year-over-year.  It reported net income of US$ 68 million, 51% up year-over-year. Earnings per share was reported US$ 0.26 for the March quarter, 2021.

Sociedad Quimica’s stock price increased from US$ 27.66 on July 10, 2020, to US$ 47.91 on July 9, 2021, the previous trading day, reflecting a 73% rise in one year.

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Lithium Americas Corp. (NYSE: LAC) is a resource company with a market capitalization of US$1.85 billion. It has projects in Argentina besides Nevada in the US.

This Vancouver, British Columbia based company closed the underwritten public offering of common stock in January this year and issued 18.2 million common shares at a price of US$ 22.0 per share and got approximately US$ 377 million net proceeds. It had US$ 514 million cash and cash equivalent as of March 31, 2021. Its net loss for the quarter was US$9.9 million compared to net loss of US$14 million for the comparative period previous year.

Today, company announced to acquire 42,857,143 subscription receipts of Arena Minerals Inc. in private placement.

Its stock rose 174% in one year at the closing price of US$ 14.36 on July 9, 2021.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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