The 5 Best Performing Pure Play Electric Vehicle Stocks of 2021
The electric vehicle (EV) industry is expected to dominate the automotive industry over the next couple of decades, with increasing support from governments and consumers' growing uptake. Furthermore, rising crude...
The electric vehicle (EV) industry is expected to dominate the automotive industry over the next couple of decades, with increasing support from governments and consumers' growing uptake. Furthermore, rising crude oil prices and initiatives to reduce carbon emissions should propel the industry’s growth. Driven in part by these tailwinds, Tesla (TSLA), Lucid (LCID), XPeng (XPEV), Li Auto (LI), and Fisker (FSR) were the best performing pure-play electric vehicle stocks of 2021. So, let's take a closer look at these names. Read on.
Government initiatives to stimulate the transition to a zero-emissions future, such as providing tax incentives to electric vehicle (EV) purchasers, should drive the EV market’s growth over the next couple of decades. The market share for the global electric car market surged to a new monthly record of 11.5% last November
Although 2021 was favorable for EVs, 2022 is expected to be even better as EV makers expand from midsize vehicles to minivans, SUVs, and even trucks. Furthermore, more than 50 new electric cars, trucks, vans, and SUVs have already been announced for arrival by 2024 and beyond. Investors' optimism about EV stocks is evidenced by the Global X Autonomous & Electric Vehicles ETF's (DRIV) 13.8% gains, versus the SPDR S&P 500 Trust ETF's (SPY) 9.4% returns over the past three months.
Tesla, Inc. (TSLA), Lucid Group, Inc. (LCID), XPeng Inc. (XPEV), Li Auto Inc. (LI), and Fisker Inc. (FSR) were among the best performing pure-play electric vehicle stocks of 2021. So, we think one could consider adding them to one’s watchlist.
Tesla, Inc. (TSLA)
Electric vehicle giant TSLA has a market capitalization of $1.21 trillion. The Palo Alto, Calif.-based company sold 936,172 electric vehicles worldwide, representing an 87% increase year-over-year. Also, the world's most valuable automaker, TSLA, reported record deliveries for six consecutive quarters.
TSLA's total revenues for the third quarter, ended Sept. 30, 2021, increased 56.8% year-over-year to $13.76 billion. The company's gross profit grew 77.4% from its year-ago value to $3.66 billion. Its income from operations rose 147.7% from the prior-year quarter to $2 billion. Also, the company's EPS increased 433.3% year-over-year to $1.44.
Analysts expect TSLA's revenue for its fiscal year 2022 to be $71.31 billion, representing 39.2% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in three of the trailing four quarters. Also, its EPS is expected to grow 172.3% in fiscal 2021 and 37.7% in fiscal 2022. Its stock price has increased 70% in price over the past year.
Lucid Group, Inc. (LCID)
LCID is a Newark, Calif.-based manufacturer of electric vehicles (EVs). The company designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. Its Lucid application provides an in-car experience, and LCID also offers Air Dream Edition, Air Grand Touring, Air Touring, and Air Pure. LCID reported more than 17,000 reservations for the Air electric sedan in its third quarter.
Last month, LCID announced that it had been added to the Nasdaq-100 Index. This recognition should contribute to the company progress in establishing itself in the EV market.
For the third quarter ended September 30, 2021, LCID's revenue came in at $232 million. The company's cash and cash equivalents increased 680.7% to $4.8 billion for the nine months ended September 30, 2021.
LCID's revenue is expected to increase 2,434.7% year-over-year to $2.07 billion in fiscal 2022. Its EPS is estimated to grow 28.1% next year. Its stock has soared 308.9% in price over the past year.
XPeng Inc. (XPEV)
Headquartered in Guangzhou, the People's Republic of China, Smart electric vehicle company XPEV's primary products include environmentally-friendly vehicles, SUVs (the G3), and a four-door sports sedan (the P7). The company also provides sales contracts, maintenance, supercharging, vehicle leasing, and ride-hailing services. 'XPEV's EV sales reached 16,000 in December 2021.
Last month, XPEV obtained the ISO 27001 (Information Security Management System) and ISO 27701 (Privacy Protection Management System) certifications issued by the BSI (British Standards Institution). These certifications demonstrate XPEV's full commitment to data and information security and user privacy protection issues, testifying to its competence in global best practices.
During the third quarter, ended Sept. 30, 2021, XPEV's total revenues increased 187.4% year-over-year to RMB5.72 billion ($899.74 million). The company's gross profit grew 796.7% from its year-ago value to RMB820.82 million ($129.12 million). Its cash and cash equivalents came in at RMB15.39 billion ($2.42 billion) during the period.
XPEV's revenue is expected to increase 93.2% year-over-year to $6.11 billion in its fiscal 2022. Its EPS is estimated to grow 23.6% in its fiscal 2021 and 18.1% next year. The stock has surged 17.4% in price over the past year.
Li Auto Inc. (LI)
Formerly known as Lead Ideal Inc., LI is a Beijing, China-based new energy passenger vehicles (NEV) automaker that designs, develops, manufactures, and sells smart electric vehicles. The company also offers Li ONE, a six-seat electric SUV equipped with a range of extension systems and smart vehicle solutions. LI delivered 13,485 Li ONEs in November 2021, representing a 190.2% year-over-year increase.
LI's total revenues increased 209.7% year-over-year to RMB7.78 billion ($1.22 billion) in the third quarter, ended Sept 30, 2021. The company's gross profit grew 264.8% from its year-ago value to RMB1.81 billion ($285.23 million). And its net loss decreased 79.9% from the prior-year quarter to RMB21.51 million ($3.38 million).
Analysts expect LI's revenue to increase 69.6% year-over-year to $6.8 billion for fiscal 2022. Its EPS is estimated to increase 67.9% in fiscal 2021 and 66.7% in fiscal 2022. The stock has gained 12.2% in price over the past year.
Fisker Inc. (FSR)
Founded in 2016, FSR in Manhattan Beach, Calif., designs, develops, manufactures, and sells electric vehicles. White space; the value; and the conservative premium are the segments under the company. FSR offers Fisker Flexible Platform Agnostic Design (FF-PAD) that allows the design and development of a vehicle from an EV platform. FSKR has targeted to launch the Ocean electric SUV in November 2022.
Last month, FSR signed a Memorandum of Understanding (MOU) with Bridgestone, a global leader in tires and rubber providing solutions. Through this partnership, FSR believes that Bridgestone should leverage FSR's EV-ready retail and service network and provide its customers in France and Germany with extensive after-sales services Bridgestone's extended retail network in Europe.
During the third quarter, ended Sept. 30, 2021, FSR's revenue came in at $15,000. The company's cash and cash equivalents increased 41.3% to $1.4 billion for the nine months ended September 30, 2021.
FSR's revenue is expected to increase significantly year-over-year to $221.6 million in its fiscal 2022. The company's EPS is estimated to grow 19.1% in fiscal 2022. FSR has gained 14.1% over the past year.
TSLA shares were trading at $1,152.64 per share on Tuesday afternoon, down $47.14 (-3.93%). Year-to-date, TSLA has gained 9.07%, versus a 0.61% rise in the benchmark S&P 500 index during the same period.
Tesla (TSLA) is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.
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