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AAPL   116.24 (+1.88%)
MSFT   210.54 (+1.58%)
FB   263.88 (+0.80%)
GOOGL   1,474.63 (+0.59%)
AMZN   3,187.63 (+1.36%)
TSLA   429.14 (+2.40%)
NVDA   541.91 (+2.43%)
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GE   6.27 (+2.45%)
MU   47.38 (-6.57%)
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S&P 500   3,384.58 (+1.47%)
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QQQ   279.21 (+1.18%)
AAPL   116.24 (+1.88%)
MSFT   210.54 (+1.58%)
FB   263.88 (+0.80%)
GOOGL   1,474.63 (+0.59%)
AMZN   3,187.63 (+1.36%)
TSLA   429.14 (+2.40%)
NVDA   541.91 (+2.43%)
BABA   291.84 (+5.38%)
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BABA   291.84 (+5.38%)
CGC   14.44 (-0.41%)
GE   6.27 (+2.45%)
MU   47.38 (-6.57%)
AMD   81.96 (+0.23%)
T   28.60 (+1.06%)
F   6.71 (+1.67%)
ACB   4.74 (+1.28%)
GILD   62.85 (+1.21%)
NFLX   500.14 (+1.35%)
DIS   124.84 (-0.45%)
BA   169.30 (+3.48%)
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Three Ways To Invest In EV That Aren’t Tesla

Monday, September 14, 2020 | Thomas Hughes
Three Ways To Invest In EV That Aren’t Tesla

The Electric Car Market Is Going To Be Huge

The Electric Car market is going to be huge. If even only 10% of all cars globally go EV we’re still talking about exponential growth over the coming years. Total car sales are expected to top 70 million units globally in 2020 even with the pandemic and only a fraction of those are EV.

Tesla is by far the most prominent of the EV carmakers and has a big head start but even it is not immune to competition. At today’s valuations, and after the S&P 500 snub, there is really no reason to want to buy Tesla while there are other choices patiently building their brands in preparation for the future of autos.

Simply looking at the U.S. data, there is still a lot of room for the EV market to grow. The estimated annual car sales are 12.5 to 14.5 million with only about 330,000 of those expected to be electric. That’s only 2.3% to 2.6% of the total market and Tesla is far less than 100% of the EV market. There are other good EV investments to be made.

Nikola Is The Next Tesla

Shares of Nikola (NASDAQ:NKLA) went on a wild ride last week but there is one thing clear, this company is on track to be the next Tesla. The company just inked a deal with GM that has it set up to mass-produce its vehicles within the next three years. The Badger, the company’s flagship model, is a far more attractive and useable version of a light truck than Tesla’s futuristic design and one that could take market share from the likes of Ford. One of Nikola’s many goals is to rival the F-Series for market dominance.

The opportunity for investors today is two-fold. First is the long-term opportunity in the stock. Even without last week’s volatile rideshares are cheap in light of the deal with GM. The deal with GM legitimizes what was before a small, niche operator and puts it on track exponential growth over the next five to ten years. The second opportunity is the short-selling issue. The short-sell report issued by Hindenburg has shares trading at a four-month low and near a significant support level. Three Ways To Invest In EV That Aren’t Tesla

Ambarella Is The Eyes Of EV

Ambarella (NASDAQ:AMBA) is more widely known for its contributions to GoPro’s success but that is not the end of the story. The company is a driving force in the field of computer visualization and has a healthy exposure to the EV market. The company recently released 2Q earnings results that beat consensus and driven by results in the AI/CV/EV segment. Shares of the stock appear to be putting in a bottom following some recent analysts upgrades. Ambarella is also well-positioned for the 5G revolution.

“We remain confident 10% of our total revenue will be earned from CV products in fiscal year 2021. Moreover, our automotive sales funnel is beginning to build, with more than three dozen unique automotive customers assessing and/or developing CV-based products during Q2. Our automotive wins, year-to-date, represent lifetime revenue of approximately $200 million," says Ambarella CEO Fermi Wang. Three Ways To Invest In EV That Aren’t Tesla

Nio Limited Could Be The Next Major Deal In EV

Nio Limited (NYSE:NIO) is a Chinese-based EV manufacturer with operations in China, the U.S., and the EU. The company, like most EV company’s, is a niche-operator offering a single type of vehicle, SUVs. Nio has models seating 5 to 7 people making it an attractive takeover or merger possibility for any major manufacturer looking to expand. The stock has been getting boost after boost over the past few months including upgraded sales outlook for China and globally, and bullish chatter out of the analyst’s community. According to Deutsche Bank Nio Limited is the leader of China’s fab-four EV automakers and expected to coexist with Tesla over the long-term. Three Ways To Invest In EV That Aren’t Tesla

Companies Mentioned in This Article

CompanyBeat the Market™ RankCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)1.5$429.14+2.4%N/A1,117.55Hold$201.53
Nikola (NKLA)0.0$21.29+19.1%N/AN/AHold$37.80
Ambarella (AMBA)1.5$52.30+0.5%N/A-37.36Buy$64.00
NIO (NIO)1.3$21.50+3.1%N/A-18.86Hold$14.00
Compare These Stocks  Add These Stocks to My Watchlist 

7 Valuable China Stocks That May Get Delisted

As if investors didn’t have enough to think about in 2020, tensions between the United States and China are continuing to flare up. One of the issues, of course, is the “what did they know and when did they know it” events surrounding the novel coronavirus. There are also issues surrounding global supply chains and the fate of 5G networking.

But another issue that should be drawing the concern of investors is the threat of Chinese stocks being delisted from American exchanges. On Friday, June 26 Luckin Coffee was delisted from the NASDAQ. The company had been in hot water since reports early this year that it had credited itself with thousands of phantom sales.

But that isn’t the reason for the delisting. The reality is that Chinese companies don’t abide by the same agreed upon accounting standards as American companies. And that can make it harder for investors to get an accurate picture of what is going on with their business at a given moment. However, like most issues between the two countries, it’s not as simple as that. There are Chinese companies that are considering voluntarily and unilaterally removing themselves from American exchanges and list on the Hong Kong or Shanghai exchanges.

While neither of these moves would mean that U.S. investors would be prohibited from trading these stocks, it could make it more difficult.

U.S. relations with China will be an issue during this election year, and likely beyond. It would be well worth your time and attention to pay careful attention to your current or planned exposure to these China stocks.

View the "7 Valuable China Stocks That May Get Delisted".

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