Summary
– Many EV-related companies went public during the buying frenzy in growth and meme stocks in 2020 and 2021
– Rivian Automotive is an EV stock worth buying with strong production numbers and expected growth in revenue
– ChargePoint is another EV stock to consider as the largest builder of EV charging stations in North America and Europe, despite a recent slowdown in revenue growth
– Lucid, a luxury electric sedan maker, is an EV stock to avoid due to production struggles and pricing concerns
– Analysts expect Rivian and ChargePoint to experience revenue growth in the coming years, while Lucid may face challenges ahead
Article
The electric vehicle (EV) market has experienced significant volatility in recent years, with many EV-related companies going public during the growth and meme stock frenzy of 2020 and 2021. However, in 2022 and 2023, as rising interest rates burst the speculative bubble, many of these stocks declined. Despite this, there are still opportunities for investors in the EV sector, with some beaten-down stocks showing potential for growth. In this article, we will discuss two out-of-favor EV stocks that are still worth buying, as well as one to avoid.
One EV stock that investors may want to consider is Rivian Automotive (NASDAQ: RIVN), a company that produces electric pickups, SUVs, and custom delivery vans for Amazon. Rivian has already demonstrated success in ramping up its production, with plans to further expand and improve its production capabilities. Analysts expect Rivian’s revenue to increase significantly in the coming years, making its stock look undervalued at present. While Rivian may not turn profitable in the near term, its growth prospects make it an attractive investment opportunity.
Another EV stock to consider is ChargePoint (NYSE: CHPT), the largest builder of EV charging stations in North America and Europe. Despite facing challenges such as slowing revenue growth and increased competition, ChargePoint’s stock is currently trading at a low valuation. The company expects to resolve its inventory issues and achieve positive adjusted EBITDA by the end of 2025. With potential for revenue growth and profitability in the future, ChargePoint represents a compelling investment opportunity for those looking to capitalize on the EV market.
On the other hand, Lucid (NASDAQ: LCID), a maker of luxury electric sedans, is a stock that investors may want to avoid. The company has struggled to ramp up production and meet its delivery targets, leading to disappointing results. Although analysts project significant revenue growth for Lucid in the coming years, these estimates may be overly optimistic given the company’s challenges. Lucid’s reliance on support from the Saudi Arabian government raises additional concerns about its long-term sustainability.
In conclusion, the EV market offers both opportunities and risks for investors. While some stocks like Rivian and ChargePoint show promise for future growth, others like Lucid may not be as attractive due to their operational challenges. Investors should carefully evaluate the financial performance and prospects of EV companies before making investment decisions in this dynamic and evolving industry.
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