January 11, 2021
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This story was originally published on Stock News
The market for electric vehicles has been changing over the past decade with a global fleet of vehicles, supported by favorable government policies and technological developments. According to Bloomberg New Energy Finance, EV sales are expected to reach 5.4 million in 2023, 7 percent of global vehicle sales. This growth will be driven by vehicle manufacturers launching new models in China, North America and other emerging economies.
Some of the best EV stocks of last year have skyrocketed, leading many investors’ portfolios to new heights. And the industry is well positioned for growth this year as well. In particular, President-Elect Joe Biden’s goal of achieving a US 100 percent clean-energy economy, should help electric vehicles grow this year and beyond.
The tectonic shift from traditional internal combustion engines to electric locomotives continues this year, with some major EV players such as Nio Limited ()NIO – Get rating), Tesla, Inc. (TSLA – Get rating), And Niue Technologies (Niu – Get rating) Has already gained more than 20% year. We feel that these stocks should continue to make solid gains in the coming months as well.
Founded in 2014, NIO is a designer, manufacturer and seller of electric vehicles offering five-, six- and seven-seater electric SUVs in the People’s Republic of China. The company also produces e-powertrains, battery packs, charging solutions and battery swapping services.
On January 3, NIO delivered its fourth quarter 2020 and full-year 2020 delivery results. The company set a monthly record of delivering 7,007 vehicles in December. In addition, cumulative delivery of its ES8, ES6 and EC6 models hit 75,641 vehicles, expanding its growing brand recognition and sales network.
In mid-December, the company announced the completion of an offer of 68 million US depository shares at US $ 39.00 per ADS. The company plans to use the proceeds of the offer for research and development for new products, service network expansion and general corporate purposes.
NIO’s revenue grew 146.4% year-over-year to $ 666.60 million for the third quarter ended September 30, 2020. Its gross profit rose 87.1% sequentially to $ 86.30 million, while its gross margin increased 452 basis points to 12.9 percent sequentially. NIO’s vehicle sales rose 146.1% to $ 628.40 million from a year earlier.
Consensus EPS estimates for the next quarter ending March 31, 2021, represent a 43.5 percent improvement from the value a year earlier. In addition, NIO has an impressive earnings history; The company unanimously beat EPS estimates in three of the four quarters. The consensus revenue estimate of $ 721.39 million for the next quarter represents an increase of 268.4% over the same period last year. The stock has gained 20.9 percent year-over-year. The stock also ranked # 6 among 122 stocks in China Industry.
Founded in 2003, TSLA, the world’s best-selling plug-in and battery electric passenger car manufacturer, certainly needs no introduction. The company operates internationally through two segments – automotive and energy generation and storage. Despite the impact of the coronovirus epidemic in 2020, the company crossed the half-million mark in electric cars produced and distributed. In addition, production of the company’s Model Y has begun in Shanghai, with delivery expected to begin shortly.
TSLA plans to roll out Tesla Cybertruck, Semi and Roadster this year. Its electric pickup truck factory, Gigafactory, is currently under construction and could be ready to manufacture vehicles as soon as May of this year. In addition, TSLA was finally added to the S&P 500 index last month after five consecutive quarters.
TSLA’s revenue increased 45.3 percent sequentially to $ 8.77 billion in the third quarter ended September 30, 2020. Its non-GAAP net income increased 155.5 percent year-over-year to $ 874 million, while its EPS increased 105.4% from a year earlier. $ 0.76. Its gross margin increased 253 basis points sequentially to 23.5% in the third quarter and its free cash flow rose 276% to $ 1.40 billion in value in the year-ago period.
The consensus EPS estimate for the current quarter ending December 30, 2020 is $ 0.92, representing a 124.4% year-on-year improvement. In addition, TSLA beat Street’s EPS estimates by three out of four quarters. The consensus revenue estimate of $ 10.16 billion for the current quarter shows an increase of 37.6 percent from the same period last year. The stock has gained 24.7% year-over-year.
TSLA is rated “Strong Buy” in our POWR rating. It maintains a straight “A” in Trade Grade, Peer Grade, Buy and Hold Grade and Industry Rank. It ranked # 1 among 53 stocks in the auto and vehicle manufacturer industry.
Based on the People’s Republic of China, NIU is engaged in designing, manufacturing and selling smart electric-scooters, scooter accessories, lifestyle accessories, and performance upgrade components such as wheels and brakes. The company offers RQi and TQi series urban commuter electric motorcycles, professional mountain and road bicycles.
Last week, NIU provided its e-scooter sales volume results for the fourth quarter of 2020. It sold 149,705 e-scooters, representing a year-on-year increase of 40.9%. The number of e-scooters sold in international markets stood at 12,119, an increase of 179.6% over the fourth quarter of last year. The growth was mainly driven by demand and improving retail network expansion.
In December, NIU partnered with Aurora Mobile Limited to improve efficiency so as to optimize the user experience for its customers. This collaboration will help NIU to gain more insight into the needs of its users and is expected to help maximize value creation.
NIU’s revenue grew 36.7 percent to 894.5 million year-on-year in the third quarter ended September 30, 2020. The company’s e-scooter sales revenue from international markets stood at RMB 59.6 million, an increase of 35.2 percent and represented 7.4 percent. Total e-scooter revenue globally. Gross profit rose 28.8% to RMB 145.23 million from a year earlier.
The consensus EPS estimate for the next quarter ending March 31, 2021 is $ 0.06, indicating a 250 percent year-over-year improvement. The consensus revenue estimate of $ 79.14 million for the next quarter represents a growth rate of 137.8 percent. The stock has gained 26.3 percent year-over-year.
It is no surprise that NIU is rated “Buy” in our POWR rating system. It is “A” for Buy grade and Industry rank and “B” for Trade grade. In technology – hardware stocks, it ranks 23rdThird Out of 54.