While everyone is chasing electric vehicle (EV) manufacturers like Tesla, Workhorse, and NIO…
No one is talking about the sneaky most-important part of the EV market.
By 2025, experts project there will be 7 million electric vehicles on the road… And 5 out of every 9 new cars that hits the road is expected to be electric.
Which means that over half of ALL new vehicle sales in the U.S. will be electric within the next 3 years.
And I haven't even mentioned what experts project beyond 2025!…
Without a doubt, EV companies are going to be one of the hottest plays in the 2023 stock market.
Every single one of those cars will need this one technology in order to work…
This is the “oil” of electric vehicles…
It's a part of the EV market that will hand big returns to the first movers.
And these 3 EV companies have it…
This Charging Station Stock Should Profit Immensely From the EV Vehicle Boom
ChargePoint Holdings Inc (NYSE: CHPT) isn’t exactly the kind of company that would immediately come to mind for many investors when discussing potential EV investments.
But last year, ChargePoint announced a merger with Switchback Energy – a massive open EV charging station network manufacturer.
Through the agreement, ChargePoint has obtained over 115,000 charging stations across the world.
We initially estimated that the combined value of Switchback and ChargePoint would be around $2.9 billion.
ChargePoint now has over $317 million in cash on its balance sheet to fund operations and drive future growth.
Between now and 2025, the company said this will help fuel a 2,000% increase in its number of charging stations to 2.5 million.
As a result, ChargePoint forecasts a 60% compound annual growth rate over the next six years. This means revenue could rise from 2020’s $135 million to $2 billion by 2027.
And with the growing popularity of EVs from both emerging automakers and legacy manufacturers, these projections could realistically come to fruition.
This is especially true considering that more electric vehicles on the road will ultimately require charging stations to become as common as today’s gas stations.
These components put ChargePoint in a strong position to capitalize on the market, potentially bolstering its long-term growth and profits.
This Next-Gen EV Battery Stock Is Trading At a Bargain
QuantumScape (NYSE: QS) is a next-gen American lithium battery manufacturer for the EV market…
The battery maker went public back in November 2020, with a share price value of $23.50. And as with all IPOs, the company’s stock climbed substantially in the months that followed. By mid-December, QuantumScape shares had rocketed by as much as 460%.
Since then, profits have been taken and shares have pulled back. But this isn’t a reflection of the company’s quality. Rather, it could be seen as a buying opportunity at $16.35 per share.
Currently, the firm’s valuation is about $7 billion, with $1.7 billion in cash and cash equivalents on hand. These factors alone already put it among some of the most valuable auto suppliers around.
However, with great product tests, an experienced management team, a strong balance sheet, and a large total addressable market (TAM), Baird analyst Ben Kallo said the company could soon rise to a valuation of $23 billion.
Kallo also highlighted that the TAM for EV batteries, in general, could likely surge over 4,248% from 2020’s $23 billion to $1 trillion by 2040. According to Barron’s, that’s an average annual growth rate of 21%, suggesting EVs will essentially replace gas- and diesel-powered vehicles altogether.
This puts QuantumScape in a strong position to benefit…
The firm is a pioneer in developing solid-state, lithium anode batteries. These batteries are expected to not only cost significantly less than other lithium batteries, but also charge faster (under 15 minutes) and provide greater range.
The company has already reported positive data on this front. And this is anticipated to continue as QuantumScape increases its manufacturing capabilities for the development of next-gen EV batteries.
The Best EV Stock Under $2
Electrameccanica Vehicles Corp Ltd. (NASDAQ: SOLO) is a Canadian designer and manufacturer of environmentally efficient electric vehicles (EVs).
The company's flagship vehicle is a single-seat EV called the SOLO (hence the company’s ticker symbol).
SOLO believes their three-wheeled vehicle will revolutionize the urban driving experience – that includes commuting, delivery, and shared mobility.
This year, the company's new EV factory in Mesa, Arizona will create 500 jobs and will have the capacity to produce 20,000 SOLO vehicles.
I’m bullish on the stock because it’s trading at an attractive price-to-book ratio of 0.92 ($248 million of cash compared to its $228 million total valuation).
That’s 30 times LESS than Tesla’s P/B ratio of 27.7.
The bottom line is: SOLO is a great way to get in on the ground floor of a cheap company ($1.95 per share) that could very well play a crucial part in the EV boom.
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