According to two traders, investors may want to keep an eye out for under-the-radar electric vehicle trades in the coming year. “We’re attempting to play around the edges,” Nancy Tengler of Laffer Tengler Investments told CNBC’s “Trading Nation” on December 23, as popular stocks like Tesla and Nikola reach excessive values.
“Investors can nibble around the edges of the EV market in two ways,” the firm’s chief investment officer explained. “Borgwarner is one of them.” Borgwarner, a $10.5 billion auto components company, is on course to supply roughly 30% of the EV industry’s powertrains, or the electric motors, by 2023, according to Tengler. It’s also trailing the market this year, up just under 13%, and trades at a lower forward price-to-earnings ratio of about 11, according to her.
“The second way is copper, and some of the miners that will be giving the supplies to the EV manufactures are Freeport-McMoRan,” Tengler said. In the same interview, Joule Financial, who is the Chief Investment Officer of Quint Tatro stated that a 3rd tangential market might witness a significant reversal in 2022.
According to Tatro, the approximately $7.5 billion in the President Joe Biden’s infrastructure plan assigned to the business may provide a major windfall for charging-station companies Blink and ChargePoint. Blink and ChargePoint have lost 33% and 52% of their value year to date, correspondingly.
“These are equities that we believe will have some tax-loss selling in the new year, and I believe these will be intriguing trading opportunities as we move into January,” Tatro said.
Tesla Inc., the market leader, is projected to maintain its dominance after committing to produce the Cybertruck to consumers by the end of 2022. The all-electric vehicle has a range of around 500 miles, a 0-to-60 mph time of 2.5 seconds, and a price tag of roughly $40,000. And, according to analysts, the rubber is going to meet the road in 2022 as all-electric cars compete for market dominance in the face of strong demand tailwinds. Here are a few EV stocks to keep an eye on in the coming year.
Rivian is still backed by a number of wealthy investors. Ford Motor Company paid $820 million for Rivian’s Series B and D offers, as well as $415 million for the electric vehicle manufacturer’s convertible debt offering. Ford today has a 12.5% share in Rivian and 10.5 percent of the voting power, thanks to those early investments valued over $13 billion.
Ford Motor Company (NYSE:F) has recently made significant strides in the electrification effort. By the middle of 2022, Ford plans to launch the all-electric F-150 Lightning. With an extended-range battery, the F-150 Lightning is going to have a range of about 300 miles. With a basic price of $39,974, it has a four-second 0-60 mph time.
According to Morgan Stanley, EV unit sales are going to reach 150K in FY22, representing 3.5 percent of Ford’s volume, 473K units in FY25, representing 11.5 percent of volume, and 1.24M units by FY30, representing 34 percent of volume, despite the company selling a modest 21,703 items of its all-electric Mustang Mach-E via the first 10 months of the year, as per Motor Intelligence. In the United States, Ford has already surpassed General Motors in the electric vehicles sales.
Fisker, Inc. is an electric car and mobility solutions company that designs and manufactures automobiles and mobility solutions. Fisker Inc. is the rebranding of Henrik Fisker’s Fisker brand, which he launched in 2007. Fisker plans to begin manufacture on Ocean SUV in November of the year 2022, with a delivery expected soon after.
The most affordable variant starts at under $40,000 and has a range of about 250 miles. The most powerful version is intended to travel more than 350 kilometers on a single battery charge. Initial reviews could be crucial in determining if Fisker’s stock price will continue to rise. Fisker has filed patents for the solid-state battery technology that is going to be used in the automobiles and consumer electronics, in addition to designing and manufacturing EVs.