FN Media Group Presents Oilprice.com Market Commentary
LONDON, Nov. 19, 2020 — The $5-trillion global transportation industry is going green, and the result of the U.S. election only solidifies that fact. Tesla (TSLA) might be too expensive a play to offer the upside we’re all looking for in the EV sector…But some of the absolute best growth opportunities right now are in this sector–and anything that ties into it. Mentioned in today’s commentary includes: Fisker Inc. (NYSE: FSR), Plug Power Inc. (NASDAQ: PLUG), NIO Limited (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Blink Charging Co. (NASDAQ: BLNK).
EV-linked stocks are blowing away the S&P 500 and the Dow. Tesla’s on a tear–up over 400% this year–and the better it does, the better the EV-linked stocks do. But one thing is clear: Growth stocks are still outperforming value stocks–and have been for years. Tomorrow’s growth prospects are wildly more lucrative than today’s simple profits when we’re talking about revolutionary ideas and technology.
From direct Tesla challengers on the EV circuit …And comprehensive tech-driven ecosystems that are riding the EV sector wave on multiple surfboards …
To major developments on the hydrogen fuel cell scene …The tie-in opportunities for investors are as many as they are big.
Here are 4 ways to capitalize on the exploding EV industry:
1 The Next Tesla
Fisker (FSR) is the new darling of the non-Tesla EV world because it boasts the most sustainable vehicle on the road: It’s not just electric… it’s also is made with some recycled materials. It’s the Ocean SUV–the SUV that just might end up removing all the “shame” from driving a big family vehicle.
Now, the stock is soaring in the wake of its first Wall Street “Buy” rating, which came on November 9th, along with a $22 price target–double where the stock was when Cowen analyst Jeffrey Osborne made the call. The stock went from $10.17 at the beginning of the year to as high as $17.39 in mid-September and even dipped all the way down to $8.96 on October 29th before repairing to around $17.50 on November 13th.
Investors are concerned about the EV bubble and the fact that Fisker isn’t likely to start producing until 2023. But this is a high-growth potential play with one of the most renowned auto designers in the world–Henry Fisker. The Ocean SUV’s price point of $40,000 is also set to disrupt the Tesla-bound EV sector. When 2023 rolls around and these most sustainable EV rolls off the assembly line, they will be instantly competitive.
As of now, Fisker has around 9,000 paid deposits. For 2021, the general expectation is that this will be considerably more thanks to a massive marketing push that Wall Street quite liked because it includes brand-building celebrities and the construction of an “experience center” in L.A.–in the heart of it all. Osborne is anticipating that these catalysts–and the overall market accelerants in the EV sector–will drive pre-production sales growth upward nicely for Fisker in 2021. We think so, too.
2 The Green Transport Ecosystem
If ever there was a stealth tie-in to the EV surge, it’s Steer, the elite-for-the-masses Electric Vehicle subscription company that plans to revolutionize the transportation industry. And it was just acquired by Facedrive (FD.V, FDVRF)–an incredibly ambitious Canadian ‘Silicon Valley’ tech company that’s got pioneering “impact investing” verticals reaching into everything from transportation and healthcare to food delivery and eSports.
Steer gives you your own virtual gallery of EVs many might never have been able to afford otherwise … and delivers them to your doorstep whenever you want for how long you want. All at the click of a button.
Washington, D.C.-based Steer–with state-of-the-art digital innovation–plans to completely disrupt car ownership. And it’s got the backing of $40-billion market cap energy giant Exelon (EXC), too.
When Facedrive scooped up Steer in September, the deal also included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC. If you want to drive a Tesla AND an Audi e-Tron … this is the way to do it.
Canadian Facedrive has to be singled out here because it’s probably the smartest company we’ve seen in its strategy of tying into multiple tech-driven ESG industries for maximum impact and tons of verticals.
While its flagship ride-sharing platform threw a major challenge to giants Uber and Lyft by being the first in the world to grasp the ESG megatrend by offering carbon-offset rides, planting trees along the way, and letting people choose EVs or hybrids …
The past few months have seen this company strike a series of landmark deals and attract some of the biggest names in tech, energy, and transportation. (And even in the Major League Sports arena).
In September, Facedrive scooped up Washington, DC, based-Steer in a deal that included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC. This is where we get to combine the $5 trillion global transportation industry with an energy industry whose renewables sector alone is expected to grow dramatically each year.
Facedrive and Steer have set out to revolutionize personal transportation by completely changing the way we view car ownership. It will be a huge boon for the greatly expanding EV industry because anyone who couldn’t afford a Tesla .. or perhaps an Audi e-Tron … can now drive one, with Steer’s EV subscription service. Private car ownership is under threat. Conventional car ownership is under an all-out attack.
It took almost a decade for car sales in the European Union to even begin to recover when Uber and Lyft decimated sales in urban areas. And now, the pandemic could change private car ownership forever because the general idea of a pandemic has been irrevocably tied to other “natural disasters” and the fear of climate change. Economics plays a big role, too, and will do so even more under the struggles of COVID-19.
Chicago-based Steer says it’s time for a transportation revolution, and it fully intends to get more people into unconventional cars–without breaking the bank. And with Facedrive (FD.V, FDVRF) behind the wheel now, we see big things happening, with the added benefit that investors are getting into a company that has an entire tech-driven ESG ecosystem with deals being cut in rapid-fire succession.
Facedrive’s flagship ride-hailing platform was the pioneer of a carbon-offset version of this explosive segment, and now an accessible, elite car subscription vertical that firmly plants Facedrive in the United States market for a planned major expansion.
3 Electric Vehicle Infrastructure
Plug Power (PLUG) is one of those plays that defines speculation. But here’s the thing: it’s based on an industry that’s on track to be worth $11 trillion.
This is a hydrogen fuel cell play, and the massive money inflow around hydrogen could keep PLUG–a highly volatile stock of late–pumping along nicely. Riding high the hydrogen hype, PLUG is up over 517% year-to-date But you have to know how to play the volatility and be patient.
The response on November 10th to PLUG’s Q3 earnings the day before demonstrates the volatility here. The stock surged 6% that morning and then lost 6% by close as investors considered what they thought of PLUG’s earnings and worried about the EV-related bubble bursting and getting left caught holding the hydrogen bag.
Like our other two stock picks here, PLUG is a growth potential stock, and its earnings were expected to come in showing a loss. And it did: PLUG reported a Q3 loss of $0.11 per share, compared to a loss of $0.08 per share a year ago. It was an earnings surprise of -83.33%. Revenues were $106.99 million for the quarter, compared to revenues a year ago of $56.38 million.
In Q2, it delivered an earnings surprise of 66.67%. So, what gives? It’s outperforming the market wildly, so why did investors get cold feet on November 10th, after piling into it hours before? Quite simply: This run on hydrogen is a new thing and no one can pinpoint what might come next for this stock.
Blink Charging (BLNK) an electric vehicle charging company, has seen its stock price rise by over 400% this year alone, and it’s showing no signs of slowing. A flurry of new deals, including a collaboration with EnerSys have created some support for the relative newcomer.
Michael D. Farkas, Founder, CEO and Executive Chairman of Blink noted, “This is an exciting collaboration with EnerSys because it combines the industry-leading technologies of our two companies to provide user-friendly, high powered, next-generation charging alternatives. We are continuously innovating our product offerings to provide more efficient and convenient charging options to the growing community of EV drivers.”
Another high-profile deal between Blink and Envoy Technologies to deploy electric vehicles and charging stations adds further support.
4 China’s Up-and-Comers
NIO Limited (NIO) has had an absolutely stellar year. Though many analysts and even veteran Wall Street traders were ready to leave it for dead, the Chinese Tesla rival powered on, blew away estimates, and most importantly, kept its balance sheet in line. And thanks to its efforts, the company has seen its share price soar from $3.24 at the start of 2020 to a high of $46.59 earlier this week, representing a massive 1337% returns for investors who have believed in it. And it’s just getting started.
Nio has made all the right moves over the past year to win over investors and turn heads on the streets and in the marketplace. On November 18th, NIO revealed a pair of sedans that even the biggest Tesla die-hard would struggle to pass up. The vehicles, meant to compete with Tesla’s Model 3, could be just what the company needs to pull back control of its local market from Elon Musk’s electric vehicle giant.
Though NIO’s sales slumped at the beginning of the year, they quickly rebounded in the second quarter and have maintained an upward trajectory ever since. By its Q4 report in October, NIO announced that its sales had more-than doubled, projecting even greater sales in the months to come.
XPeng Motors (XPEV) is a relative newcomer in the electric vehicle scene, but it has seen tremendous success in its short time on the market. The Chinese electric vehicle giant is riding on the coattails of Tesla and NIO, but has carved out its own demand, especially among Robinhood traders looking for the next big score. Since its NYSE debut in August, the ambitious electric vehicle company has risen by more than 44% thanks to its promising financials and growing demand for its stylish vehicles.
In addition to retail interest, Xpeng has also received a ton of interest from Big Money. Earlier this year the company raised over $500 million from the likes of Aspex, Coatue, Hillhouse Capital and Sequoia Capital China, and even more recently, secured another $400 million from heavy hitters such as Alibaba, Qatar Investment Authority and Abu Dhabi’s sovereign wealth fund Mubadala.
By. Jeff Everett
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This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help completely change the way people view car ownership, that Steer can disrupt industry segments; that Facedrive will be able to expand to the US and globally; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of Facedrive to attract providers of good and services for merchandise partnerships on terms acceptable to both parties, and on profitable terms for Facedrive; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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