In a note about the "fiercely competitive" EV industry, Bank of America analyst John Murphy says that it is "without question that the advent of electric vehicles has arrived."
While penetration for EVs globally will be slow over the next decade, it will still translate into significant volume growth in absolute terms from a low base.
This is an opportunity for EV-centric automakers like Fisker (FSR) - Get Fisker Inc Class A Report, Lordstown Motors (RIDE) - Get Lordstown Motors Corp. Class A Report, and Canoo (GOEV) - Get Canoo Inc. Class A Report, according to Murphy. And, of course, Tesla (TSLA) - Get Tesla Inc Report is in that category as well.
Fisker and Lordstown Motors both tumbled Thursday after Goldman Sachs downgraded shares of both electric vehicle makers over concerns about an increasingly competitive EV market. Fisker shares were falling 10.5% to $13.56 on Thursday, while Lordstown fell nearly 4% to $9.38.
For more in-depth coverage of the electric vehicle sector including trading recommendations and investment strategies, follow experts on Real Money.
Here is a list of the electric vehicle stocks to watch and their performance from the past week by percentage change at the close of trading on Wednesday, Apr. 21:
Tesla | +1.11% 5-Day
The Tesla Model S crashed into a tree, caught fire, and led to the deaths of two passengers sitting in the front and one in the back, according to multiple reports quoting local police. The car was reportedly driving at a high speed when it failed to properly take a turn and ran off the road, according to reports.
Tesla could not be immediately reached for comment, but hours earlier CEO Elon Musk posted a note on Twitter touting the safety of its cars. "Tesla with Autopilot engaged now approaching 10 times lower chance of accident than the average vehicle," he wrote.
Jim Cramer, the founder of TheStreet, said to his Mad Money viewers Monday that younger, less experienced investors are betting big with their stimulus checks and are hooked on commission-free trading. For this group, it's all about flashy momentum stocks, like Tesla, even though the company is virtually flat this year, to date. Cramer added that Tesla is the bellwether and Monday's decline worries him.
TheStreet Quant Ratings rates Tesla as a Hold with a rating score of C.
Ford | -4.41% 5-Day
Ford Motor Company (F) - Get Ford Motor Company Report cautioned last month that if the semiconductor shortage extends through the first half of the year, it could take a hit of between $1 billion to $2.5 billion to its adjusted bottom line.
The company's shares were in the red this past week, falling 2.24% to 12.44 each. It showed a -5.45% decrease Tuesday.
Earlier this year, Ford said it would recall 3 million vehicles in the U.S. and Canada to replace faulty Takata airbags at a cost of $610 million.
Ford will host its 2021 annual meeting of shareholders on Thursday, May 13.
TheStreet Quant Ratings rates Ford as a Hold with a rating score of C.
General Motors | -2.00% 5-Day
Shares of U.S. automaker General Motors (GM) - Get General Motors Company Report dropped Monday after U.S. regulators started investigating complaints the airbags on thousands of GM vehicles may not inflate in a crash.
The company's shares also slipped this past week amid reports that the carmaker is idling another North American plant as a result of the ongoing shortage in global semiconductor supplies. CNBC said General Motors will temporarily close its facility in Spring Hill, Tennessee later this month, and reiterated the company's estimate that chip shortages will ding its 2021 operating profit by as much as $2 million.
The National Highway Traffic Safety Administration says the inquiry covers nearly 750,000 Cadillac, Chevrolet, and GMC SUVs and pickup trucks from the 2020 and 2021 model years.
TheStreet Quant Ratings rates GM as a Buy with a rating score of B.
Nikola | -13.36% 5-Day
Nikola (NKLA) - Get Nikola Corporation Report has signed a deal under which it will open two hydrogen filling stations at California locations of truck-stop franchisor TravelCenters of America. In a statement, the companies said they saw the accord as a first step toward building out a nationwide network of hydrogen fuel stations. If the deal closes, the filling stations would open in the first quarter of 2023.
shares fell Monday after Wedbush analyst Dan Ives nearly halved his share-price target for the electric truck maker to $13 from $25, affirming a rating. Nikola shares recently traded at $10.85, down 1.2%.
“Overall we still believe the company's electric vehicle and hydrogen fuel cell ambitions are attainable in the semi-truck market,” he wrote in a commentary.
The company's stock has dropped 44% over the past six months. That drop came after Hindenburg Research in September published a report arguing that the company and Founder Trevor Milton misled investors. Earlier this month, Nikola disclosed that Milton sold $48.6 million of its stock.
NIO | -4.28% 5-Day
NIO (NIO) - Get NIO Inc. (China) Report reported big gains in their first-quarter deliveries. The company said it delivered 20,060 vehicles in the first quarter, up a record 423% from a year ago. It delivered 7,257 vehicles in March, a new monthly record and up 373% year-over-year.
The Chinese electric vehicle maker was a volume leader Monday with 92,190,700 shares traded.
TheStreet Quant Ratings rates NIO as a Sell with a rating score of E+.
Lordstown Motors | -11.87% 5-Day
Lordstown Motors (RIDE) - Get Lordstown Motors Corp. Class A Report fell Monday fell after the electric truck maker's pickup truck, Endurance, failed to complete a race in Baja, Mexico. Out of the 270 entrants, just 187 were able to finish.
Official results from organizers of the Score San Felipe 250 show that the Endurance Entry reached 39.8 miles of the 280-mile course. The Endurance has a range of 250 miles, according to Lordstown's website.
Shares of the Lordstown, Ohio, company at last check were down 9.7% at $9.05.
Bank of America analyst John Murphy sees Lordstown's underlying technology as less of a differentiating factor versus competitors, although its niche target market of trucks, vans, and SUVs for fleet customers makes sense.
XPeng | -1.54% 5-Day
Xpeng (XPEV) - Get Xpeng Inc Report debuted the Xpeng P5 smart sedan this past week, which the Chinese electrical vehicle maker said is the world’s first mass-produced smart EV equipped with automotive-grade LiDAR technology.
The Xpeng P5 is the company's third production model. LiDAR, or light detection and ranging, is a system that helps provide visibility for autonomous vehicles.
Plug Power | -6.23% 5-Day
A securities fraud class action lawsuit has been filed against Plug Power Inc. (PLUG) - Get Plug Power Inc. Report on behalf of those who purchased or acquired Plug securities between November 9, 2020, and March 1, 2021.
"Plug Power had accounting issues and we need to get to the bottom of them," Cramer said this past week during the "Mad Money Lightning Round."
TheStreet Quant Ratings rates Plug Power as a Sell with a rating score of D.
QuantumScape | -18.95% 5-Day
QuantumScape (QS) - Get QuantumScape Corporation Class A Report rose this past week after the electric vehicle battery maker's shares nosedived on the heels of scathing report from activist short-seller Scorpion Capital that branded the company as a "pump and dump SPAC" scam.
In addition to the "pump and dump" allegation, the Scorpion Capital report lambasted the company for claiming "to have a 'magic material' that’s led to a breakthrough solid-state battery for electric vehicles." QuantumScape said it stood by its data.
The company has been one of the most successful de-SPAC investments to date. Shares of the company, based in San Jose, Calif., were up 2.12% to $36.61 at the last check after tumbling in the previous session.
Canoo | -6.93% 5-Day
Canoo (GOEV) - Get Canoo Inc. Class A Report shares were down 8.5% to $7.58 at the last check. The company this past week lost more than a quarter of its value after the electric vehicle maker did not report revenue for the December quarter and was downgraded at Roth Capital.
Canoo said that it planned to deemphasize its contract-engineering-services line, which led Roth analysts to downgrade the stock to neutral from buy.
Bank of America analyst John Murphy initiated Canoo with an underperform rating and a $6 price target. He said the company's business model is increasingly in flux with several pivots and changes recently announced.
Fisker | +6.54% 5-Day
Fisker shares at the last check were 5.1% higher at $13.
Fisker recently told TheStreet's founder, Jim Cramer, on "Mad Money" that his company is looking not only to reinvent the car but also how cars are purchased. He said younger people don't want to take out huge auto loans or lock themselves into multi-year leases. So Fisker will offer flexible leases where buyers can return their vehicles any time they want.
Cramer said everything needs to go right for Fisker to be the next Tesla and it needs to have flawless execution.
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