The future is electric, as evidenced by this amazing production race taking place by Electric Vehicle Manufacturers. The International Energy Agency states that “After entering commercial markets in the first half of the decade, electric car sales have soared. Only about 17 000 electric cars were on the world’s roads in 2010. By 2019, that number had swelled to 7.2 million”. If that incredible increase in production says anything, it says that money stands to be made here through the right investments.
There are two critical things to consider when deciding to invest in Electric Vehicle Stock:
1. World Trends on Electric Vehicle Sales
Ditching fossil fuels in favor of renewable energy options is at the forefront of international policy worldwide. By making zero-emission vehicles widely available, countries can significantly cut down on their footprint.
For example, Norway is the global leader in electric vehicle sales, with over 50% of people driving them. They boast incentives for buying, owning, and using EVs alongside investing in EV infrastructure like charging stations.
In America, President-Elect Biden nominated Pete Buttigieg to be the Secretary of Transportation, a giant leap forward for EVs. Buttigieg tweeted in December 2020, “To meet the climate crisis, we must put millions of new electric vehicles on America’s roads. It’s time to build public charging infrastructure powered by clean energy and make it available in all parts of this country.”
2. History of the Stock You Are Looking At
When you are considering purchasing a stock, you should always look at history. You can better analyze the stock by looking at the three months, one year, and five year history. If you notice either a gradual trend upwards or a steep uptake within a short period of time, this is a good sign and something to look for in an attractive stock.
The other part of the history you want to look at before making a purchase is the 52 weeks high and low share price. You don’t necessarily want to be buying a share when it is at its peak price for the year, and finding the year’s share price average can be useful in making sure you don’t overpay.
With current global trends making a major push towards electric vehicles, this is the right time to buy Electric Vehicle stocks. By analyzing stock history and trends, you will be able to spot the stocks you like and buy them for a fair price. With this foundation, there are 3 EV stocks, in particular, that would be a good buy in 2021.
1. NIO (NIO)
NIO is a Chinese company that specializes in the design, manufacturing, and sale of electric vehicles. They also engage in driving innovations like artificial intelligence and autonomous driving. NIO has super performance models in its fleet, as well as family-friendly vehicles like sedans.
What sets NIO apart is that they have beefed up their manufacturing capabilities and offer most of the same specs and amenities that Tesla offers. Investopedia sites that, “For the month of November, the company delivered a total of 5,291 vehicles, an increase of 109.3% compared to the same period a year ago. Total deliveries for the year amounted to 36,721, up 111.1% compared to the previous year.”
Delving into the stock performance itself, it has seen a 1500% increase in the last year alone. In the last three months, it has had a 124% increase. The numbers speak for themselves.
Although the share price is at its peak right now, at around $60 a share, NIO’s momentum shows no signs of slowing down and should be a heavily considered stock to buy in 2021.
2. Blink Charging (BLNK)
What do electric vehicles need most to keep going? Chargers. BLNK’s global product line and services include its EV charging network and equipment. The company serves residential consumers and building owners, parking garages, sporting venues, and other public areas.
They are on the run to become the leading network and equipment producer in the EV industry. With global EV purchases forecasted to skyrocket, BLNK is bulking up its inventory and network and making industry partnerships, like sports venues, medical facilities, and airports, to prepare for the steep demand EV charging will have going forward.
Much like NIO, BLNK has seen an insane percentage increase of 2680% in the last year, 454% in the last three months. It has consistently been making the 100 most popular stocks list on Robinhood and is continuing to barrel upwards in value.
As BLNK retains a steady increase in value, 2021 is a good time to invest in the stock as it continues to impress.
3. Workhorse (WKHS)
Workhorse is another designer and manufacturer of electric vehicles, but their focus has been on delivery and utility vehicles like aircraft, delivery drones, cargo vans, and pick-up trucks.
Furthermore, Investorplace notes that “A friendly Biden administration and potentially lucrative contract with the U.S. Postal Service make WKHS stock attractive.”
The stock itself has not done as well as projected in the final quarter of last year due to the Coronavirus; however, WKHS is still increasing in value. It is up 9.5% over the last three months, but 581% over the previous year.
It is a good time to take a position with Workhorse since shares are currently low. Promising stakeholder deals and a favorable political climate also make this stock poised for continued growth.
Conclusion
The EV industry is young but growing quickly, as evidenced by the surge in production and infrastructure. This industry has the high potential to blow up in revenue, and buying EV stock now is like getting in on the ground floor.
Growing demand, production targets, and global trends have made the electric vehicle industry an attractive industry to invest in. With the new political climate in 2021 and the push for increased EV infrastructure, all three of these stocks are great choices to invest in.
NIO is becoming the number one competitor to TESLA for mainstream EVs. BLNK is cornering the market as the most widely used charging option, and Workhorse is leading the field of delivery and utility electric vehicle production.
Each of these stocks has immediate value and are projected to steadily increase in 2021 and beyond.
