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Electric Vehicle Checkpoint: EV Market May Quadruple By 2030

See the latest news for the top stocks in the electric vehicle space including Ford, Tesla, General Motors, Rivian, Lucid, and more.

The current EV market is expected to rise to $957.42 billion from $208.95 billion, a number that could more than quadruple by 2030, according to a Market Research Future report.

Along with rising demand, fuel prices and various government initiatives will push more people toward electric cars. The research firm estimates a CAGR of 24.51% during the period between 2022 and 2030.

"Tax breaks, non-monetary benefits such as new car registration and carpool lane access, increased vehicle range, active participation of OEMs, provision of charging infrastructure in regular places, and other factors can all contribute to the expansion of EV market trends," reads the report.

IHS Markit data dug up by CNBC found that, while Teslas accounted for 79% of all electric vehicles sold in 2020, things will not remain that way for long as hundreds of new models hit the market by 2025. In 2021, there were only several dozen available.

Shares of electric auto heavyweights Tesla  (TSLA) - Get Free Report, Lucid  (LCID,) - Get Free Report and Fisker  (FSR) - Get Free Report declined Thursday. The stocks receiving target-price increases from Bank of America Wednesday.

Tesla has soared 36% over the past month, despite its drop in the past few days. The Nasdaq Composite for Tesla has gained 9% in the last month. Lucid has skyrocketed 85% over the past month and Fisker has leaped 46% in the last month.

Bank of America analysts, led by John Murphy, raised their target for Tesla to $1,200 from $1,000, for Lucid to $60 from $30, and for Fisker to $24 from $18. Murphy has a buy rating on Lucid and a neutral rating on Fisker and Tesla.

“It is debatable whether any of the start-up EV automakers will ultimately be dominant over the long run, especially in a very competitive industry where the traditional automakers are also ramping up EV efforts,” Murphy wrote in a commentary. “However, if a large global footprint can be built with no-cost capital, the growth story will likely continue to carry the day for the stocks."

Commodity Supercycle, The Debate Continues

Lucid shares continued their ascent on Wednesday, rising another 7% in premarket trading, pushing the luxury electric vehicle maker’s market value at near $90 billion – more than Ford  (F) - Get Free Report, and right behind General Motors  (GM) - Get Free Report. The stock came back to Earth Thursday, down more than 16% in midday trade.

Lucid’s gains come less than four months since going public through a special purpose acquisition company, or SPAC deal, with Churchill Capital IV. Since that time, Lucid’s stock price has gained more than 80%.

It also comes as investors pile into all things EV-related – both car and truck companies and related entities that do everything from creating the chips and other parts that go into electric vehicles, to the network of chargers that will keep cars and trucks without engines moving.

Lucid’s market cap is still well below that of electric vehicle lynchpin Tesla, whose market cap has surged past $1 trillion this year. Rivian  (RIVN) - Get Free Report, another EV start-up that went public last week, has a market cap of about $140 billion.

Rivian Automotive, the newest and biggest entrant in the EV space, looked set to clear $125 a share after going public at $78 a share. But shares pulled back Thursday, also down more than 16% at $121.47.

Tesla rival and Chinese automaker Geely  (GELYF)  reportedly plans to launch its new heavy-duty electric truck, designed for the global market, by 2024, the Shanghai company told CNBC. Geely’s commercial vehicle group, Farizon Auto, is planning to roll out the new Homtruck in 2024 with an eye on international markets. The big rig Homtruck will have different power options including methanol hybrid and pure electric, CNBC reported. 

Amid growing enthusiasm for all things that move on four wheels and don’t require gasoline, there's also optimism for companies like EVGo  (EVGO) - Get Free Report and Blink Charging  (BLNK) - Get Free Report, which are building out the charging infrastructure needed to keep EVs charged and on the roads.

Apple  (AAPL) - Get Free Report is even accelerating its plans to build a self-driving car, which could unveil its debut model as early as 2025. 

Bloomberg News reported that the tech giant is aiming for a fully autonomous vehicle, with new division head Kevin Lynch looking for a faster-than-forecast release.

The report follows speculation that Apple, which has long been connected to an autonomous driving project, had visited automakers and suppliers in Asia, including Toyota Motor Co.  (TM) - Get Free Report, as part of its early-stage preparations.

Here are the top electric vehicle stocks to watch:

Tesla's Elon Musk Hints At More Stock Sales in Bernie Sanders Taunt

Tesla stock traded lower on Monday after co-founder and CEO Elon Musk suggested he may sell off even more of his Tesla shares in a Twitter spar with Democratic Senator Bernie Sanders. Musk, the world’s wealthiest person, on Sunday sparred with Sanders, who tweeted a day earlier that “…we must demand that the extremely wealthy pay their fair share.” 

“I keep forgetting that you’re still alive,” Musk tweeted in a reply to the 80-year-old senator from Vermont. In a subsequent tweet, Musk asked: “Want me to sell more stock, Bernie? Just say the word.” The Twitter spat followed Musk’s sales of nearly $7 billion of Tesla stock last week. Musk tweeted on Nov. 7 that he would sell 10% of his stock if his 63.7 million followers approved the move.

TheStreet Quant Ratings rates Tesla as a Buy with a rating score of B.

General Motors Technology Provider AutoForm To Be Acquired By Carlyle Group

The next big move made by Carlyle Group  (CG) - Get Free Report could be a $2 billion acquisition of Switzerland's AutoForm Engineering. The Washington, D.C.-based private equity firm is in the process of working out a sale from French equity rival Astorg for 1.75 billion euros or roughly $2 billion, The Wall Street Journal reported Tuesday.

Based in Switzerland's Freienbach, AutoForm makes the technology necessary to design the sheet metal parts commonly used in cars as well as simulate the process of joining a car with its frame. General Motors, Tesla, and Volkswagen undefined are among the approximately 1,000 automakers that use AutoForm software to minimize carbon dioxide emissions and improve their cars' fuel efficiency. The software is accessed through a cloud that automakers access on a per-user basis.

TheStreet Quant Ratings rates GM as a Buy with a rating score of B.

Lucid Motors Reported Strong Q1 Results And Outlook 

Lucid Group shares jolted higher after the luxury electric vehicle maker reported its first-quarter financial results as a public company and revealed a “notable” increase in vehicle reservations. Lucid said it lost $524.4 million in the third quarter. The California-based Tesla competitor, which went public via a SPAC deal in July, said it lost $1.5 billion through the first nine months of 2021, though it also confirmed its 20,000-vehicle production target for next year.

“We remain confident in our ability to achieve 20,000 units in 2022,” Lucid CEO Peter Rawlinson said in a statement, though noted that the target “…is not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics.”

TheStreet Quant Ratings does not have a rating for Lucid.

Xpeng Set To Reveal New SUV

Xpeng's  (XPEV) - Get Free Report American depositary receipts traded higher after the Chinese electric-vehicle maker indicated it is set to reveal a new sport utility vehicle. The car is likely to be the successor to Xpeng’s current SUV, the G3, and G3i, according to reports.

In a brief statement accompanied by a shadowed-out SUV, Xpeng said it will unveil its new “smart EV” model at the 19th Guangzhou International Automobile Exhibition on Nov. 19. Xpeng co-founder Henry Xia will speak via live broadcast at the show.

TheStreet Quant Ratings does not have a rating for Xpeng.

Lordstown Finalizes $230M Pact To Sell Plant to Foxconn

Lordstown Motors  (RIDE) - Get Free Report shares jumped this past week after the electric-vehicle maker finalized an accord to sell its Lordstown, Ohio, plant to Taiwan’s giant contract manufacturer Foxconn for $230 million. The company can use the infusion. In June, it warned investors that it could run out of cash amid accusations of accounting irregularities.

Foxconn, also known as Hon Hai Technology, has agreed to make a down payment of $100 million by Nov. 18, and subsequent payments of $50 million each on Feb. 1 and no later than April 15. The balance of the purchase price will be paid at closing. The companies agreed to pursue a contract manufacturing agreement for the Endurance pickup truck, which must be entered into before closing, currently targeted by April 30.

TheStreet Quant Ratings doesn't have a rating for Lordstown Motors.

Ford Offers $2.5 Billion Unsecured Green Bond to Investors

Ford offered a $2.5 billion unsecured green bond to investors, days after the American carmaker launched its sustainable-financing framework and said it would buy back higher-priced debt. The move comes as President Joe Biden is set to sign the administration's $1.2 trillion infrastructure bill, which includes major funding for electric-vehicle and other clean-energy projects.

Ford said that it would allocate proceeds from the bond offering to fund investment in its battery-powered electric vehicle portfolio. “We’re again putting our money where our mouth is, prioritizing and allocating capital to environmental and social initiatives that are good for people, good for the planet, and good for Ford,” John Lawler, Ford's chief financial officer, said in an interview last week, according to Bloomberg.

TheStreet Quant Ratings rates Ford as a Buy with a rating score of B.