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Forget Lucid group, Buy These 4 Electric Vehicle Stocks Instead -Breaking

by Mike Robinson

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© Reuters. You don’t need Lucid Group, these are the 4 best electric vehicle stocks

With climate change and stricter regulations, many countries looking to ban internal combustion vehicles from their roads, carmakers are focusing more on the EV sector. The shares of Lucid Group (LCID) have gained recently despite the company’s weak fundamentals. We believe they may see a short-term pullback. The stocks of NIO Inc., XPeng Inc.(XPEV), Li Auto. (LI) and Hyzon Motors. (HYZN), are all fundamentally stronger EV companies than LCID. So, let’s discuss.Concerns about climate change are causing carmakers to turn to electric vehicles (EVs). A Reuters report estimates that carmakers will spend between $515 and $55 billion in the next 5-10 years to develop battery-powered cars, as well as financing the transition away from internal combustion automobiles. The industry is being pushed to make this change by regulatory pressures. Besides President Biden’s target of 50% of automobile sales to be EVs by 2030, countries including Sweden and Singapore are set to ban the sale of new combustion vehicles by 2030. The global EV market will grow at an impressive 19.8% CAGR and is forecast to reach $812.89 Billion by 2028.

Shares of EV startup Lucid Group, Inc. (LCID), rocketed in value last week. The company’s market value increased to $89.9 billion following the stock’s 24% gain on November 16, after the announcement of increased reservations for its first vehicles. The company management confirmed that it was still on schedule with its 2022 production plans. However, the company’s fundamentals look weak. For its fiscal third quarter, ended September 30, LCID’s revenue decreased 30.5% year-over-year to $0.23 million. Its net loss was $524.40 millions, and its comprehensive loss was 225.2% higher than the quarter before. Wall Street analysts anticipate a 12 month median price target for $44.33, which is 13.3% less than the previous year.

While LCID doesn’t look sufficiently fit to capitalize on the industry tailwinds, we think it could be wise to invest instead in the stocks of fundamentally strong EV companies NIO Inc. (NIO), XPeng Inc. (XPEV), Li Auto Inc. (LI), and Hyzon Motors Inc. (HYZN).

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