This may be the perfect time to invest in EV stocks. The electric vehicle industry is booming, and its popularity increases with every passing day.
Many governments and cities have introduced regulations to accelerate sustainable mobility, with the global community collectively searching for answers in response to climate change.
Regulators define more stringent emissions targets worldwide to create cleaner air while promoting eco-friendly transportation options like electric vehicles or hydrogen fuel cell cars.
Electric engine-driven machines have many advantages over their gas-powered counterparts, including no emissions and better fuel efficiency.
Along the way, they will have a massive impact on the public markets. All of these new EV companies need finance to become successful. The equity markets are therefore very important to their growth and sustainability.
Considering electric cars are the future, these EV stocks are excellent investments to future-proof your portfolio. Many of these companies had an excellent 2021. So, expect them to keep gaining momentum as we enter the new year.
- NIO (NYSE:NIO)
- XPeng (NYSE:XPEV)
- Tesla (NASDAQ:TSLA)
- Lucid Motors (NASDAQ:LCID)
- Fisker (NYSE:FSR)
- Li Auto (NASDAQ:LI)
- Arrival (NASDAQ:ARVL)
Best Positioned EV Stocks: Nio (NIO)
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Nio has been a disappointment in the last 12 months. During this period, its stock declined by nearly 54%.
The demand for new cars is high, but it has positioned itself to survive and grow despite intense competition. This makes NIO look attractive at current levels.
Nio is keeping its vehicle deliveries robust. The company has also expanded internationally with an initial presence in Norway, and further expansion will continue to spur growth.
The EV maker has also witnessed steady growth in vehicle margin due to an increasing number of deliveries generating cash flows that Nio can use for investments like research and development.
One of the more interesting aspects of Nio is its close association with a local Chinese government. At the height of Covid-19, Nio inked a deal with the municipal government for Hefei to get a bailout of $1 billion in cash injections.
In exchange, NIO expanded its operations and set up a new headquarters in Hefei. The company also plans on furthering its relationship with ecosystem partners while deepening its roots, thereby investing more resources into this area.
All of the entities involved combined to create a new subsidiary called NIO China. Nio seeded the unit with all of its Chinese assets.
Many investors might balk at
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