Robert Zach and Marco Oehrl

Investing.com. Sooner than later, it will become impossible to convert from a gasoline engine to an electrical vehicle. It is not just the opinion of politicians. This view also applies to the stock market. You can see this in the KraneShares Electrical Vehicles and the Future Mobility Index (NYSE :), which includes companies such as Contemporary Amperex Technology Co Ltd Class (SZ:), the biggest Chinese producer of lithium-ion battery batteries, or the Japanese maker of electric motors Nidec Corp T:) and the American electric vehicle manufacturer Tesla (NASDAQ;), are included in its holdings. Despite price volatility, it has managed to increase 25 percent this past year.

That is the past. Now is all that matters. How will manufacturers fare in the next 12 months, and what e-mobility stocks are most likely to benefit from this massive trend?

E-Cars are the Future Of Transportation

In some parts of the world registrations for new electric vehicles seem to stagnate, while in Europe e-mobility has been pushed forward with renewed energy. This is an essential step towards achieving ambitious climate targets.

Germany drives this development, along with France and UK. The German market for pure electric and plug-in hybrid vehicles has almost 16 percent of its market share as early as 2020.

Look at image above. Source: IEA Global EV Outlook 2021

The level of interest shown by different car manufacturers in moving to electric vehicles is variable. This is due to legal requirements within each target market.

If a manufacturer fails to comply with the specified limits for CO₂ emissions, they either have to purchase expensive CO₂ certificates to compensate or pay penalties.

Look at image above. Source: IEA Global EV Outlook 2021

Volvo AB aDR (OTC) (50%), Faw Car Co Ltd(SZ:), (40%) and SAIC Motor Corp Ltd. (SS:), (30%) are the most prominent manufacturers aiming to sell electric cars by 2025.

This rapid development will lead to tougher competition for the newcomers (Tesla, Nio (NYSE:), & co.) in the automotive sector that are relying on purely electric drives.

In the long term, it will probably not be easy for them to convince Generation X and Millennials, who have already built up brand loyalty to the Teslas of the world, to switch to “legacy” brands. It is not surprising, given the loyalty they have to their cars and their habit of planning their next journey based on charging station availability.

Either way, the car of the future is electric, as several countries have already decided by law that the transportation sector must be converted to a CO₂-neutral variant.

Norway, which has committed to this goal by 2025, is clearly the leader in this area. Therefore, passenger car makers who wish to stay relevant in this market will have to take the necessary steps. Norway’s progress towards achieving its goal can be seen in the fact that 73.8 percent (11,274 electric passenger vehicles) of all total sales was already attained by November’s registration.

In the Haze of E-Mobility

This transformation has opened the door to other industries that can also benefit from it. This applies regardless of whether Tesla is victorious or long-established producers are.

The basic material from which the CO₂-neutral dreams are made is lithium, because without this raw material there would be no lithium batteries, which are found in almost every electric vehicle. The motors, which are made up a large amount of lithium, also have semiconductors that allow for communication and operation between technical parts.

Electricity is the final requirement. The charging stations should be readily available throughout the country.

The latter is of particular importance if we want to avoid the warnings from ADAC, Europe’s largest motoring association, of waiting at too few charging stations during the coming vacation travel waves. Oder rows upon rows of batteries that weigh tons and need to be hauled off the roads by tow trucks.

Enbw (DE) has opened Germany’s biggest fast-charging station at the Kamener Kreuz interchange. This allows up to 52 electric vehicles to be charged for their onward journey.

Hubs such as this are essential to ensure drivers don’t base their purchasing decisions solely on the battery range. Because gasoline can be found everywhere, it is not necessary to ask how long you can go with a traditional combustion engine.

EnBW and other corporations have realized this. It is not a matter of running charging stations economically at the beginning. Long-term, the goal is to profit from new trends by cherry picking the busiest routes.

Let’s now take a look the 15 e-mobility stock that Wall Street analysts think have the highest upside potential for the next 12 months.

Investing.com got our stock screenerThis is why we filter for stocks in the e-mobility industry that have been followed by at most five analysts, at least five buy recommendations, and are where there’s the highest upside potential. Stocks must have at least $5B in market capitalization to be included on the list. Companies from traditional industries such as manufacturing and suppliers of automotive components, semiconductor companies, as well charging station operators, who are able to benefit from the growing electric mobility trend, make up the list.

• ChargePoint Holdings Inc.

• Connect Power (NASDAQ:) Average target price for 12M: $49.22/+58.77%)

• Li Auto Inc (NASDAQ:) Average target price for 12M: $44.40/+46.81%)

• Xpeng Inc (NYSE:) Average target price for 12M: $59.81/+40.53

• Fisker Inc. (NYSE:) Average target price for 12M: $24.73/+39.31%)

• Daimler (OTC) (average target prices in 12M: 99.39 EUR/+38.54%)

• Vontier Corp (NYSE 🙂

• Stellantis NNV (NYSE) (average Target Price in 12M: 22,10. EUR / +31%)

• Cummins (NYSE) (average target prices in 12M at $276.77/+26.25%)

• Magna International (NYSE)

• Honda Motor Co Ltd ADR(NYSE:) Average target price for 12M: JPY 3983.7/+24.37%)

• SolarEdge Technologies, NASDAQ: (average target price for 12M: $369.05/ +21.81%)

• General Motors (NYSE) (average 12M target price: $3,983.7/+21.49%)

• Analog Devices (NASDAQ:) Average target price for 12M is $369.05/+19.39%)

• BMW (DE:), (average price target in 12M: 106.6 EUR / +19.34%)

Please note: All figures are based on the closing price as of December 15, 2021.

ChargePoint has the Highest Charge

Analysts believe ChargePoint has the highest share price potential. Average, 16 experts surveyedInvesting.com projects a return potential of 62.69% for CHPT shares in the next twelve months. 10 of those surveyed recommend holding and 6 suggest buying. No sell advice was given. ChargePoint stock average target price is $31.56

ChargePoint is the biggest of all the charging companies that are publicly traded. This includes EVgo Charging, Blink Charging and Volta. However, it is currently one of the cheapest. InvestingPROBlink Charging and Volta are at 50.9x 56.8x and 33.1x respectively.

ChargePoint shares were under threat after ChargePoint presented its latest financial results. quarterly results. Despite raising its revenue guidance, the company reported a surprisingly high loss in the third quarter. But the majority of the numbers are convincing: The quarter’s revenue roseThe company’s high guidance ranged from $79 million to $65million. The adjusted gross margin was 27%, an increase of 20% from the previous year. ChargePoint currently had 163,000 charging stations in operation as of October 31, including 45,000 across Europe. Customers can charge their cars at over 290,000. stations that are operated by third-party providers through roaming agreements. ChargePoint projects revenue between $73 million and $78 million in the quarter that ended Jan. 31, 2022. The company also increased its full-year revenue guidance from $225million to $235million.

A functioning charging network is essential for the success of the mobility revolution. It’s probably not bad to keep the market leader in charge of the charging station, given the Biden administration. wantsAs stated in the U.S. EV Charging Action Plan (currently $7.5 billion), to install at least 500,000 charging stations by 2030.

Kamala Harris Vice President: Electric mobility will be the future of mobility around the globe and in our country. recently toldAn electric vehicle charging station was visited by the Associated Press in suburban Maryland.

A High Level of Power from Plug Power

Wall Street considers Plug Power the next stock with great potential in the coming 12 months. It is a manufacturer of fuel cells engines for electric mobility and associated hydrogen infrastructure which enables businesses to generate green, sustainable energy. The average target price of 24 analysts surveyedInvesting.com indicates a potential upside rate of 58.77% Target price: $49.22

Morgan Stanley increased its price target on PLUG shares, from $43 to $65, in mid-November. This was due to a better hydrogen and electrolyzer production business.

We are increasing our revenue estimates substantially, especially for hydrogen production (+131%) and electrolyzers (+131%). This is driven by comments from management on the expected growth of these businesses in the coming years. This leads to a 51 percent increase in our price target to $65, a 61 percent increase from current price levels,” Morgan Stanley’s analysts said.

Plug Power is also a beneficiary of the U.S. infrastructure bill, which includes $8 billion for regional clean hydrogen centres. This includes 500 million to produce clean hydrogen and $1 billion for reducing the production cost with electrolyzers.

Based on McKinseyThe industry is still very young. A study found that total investments in hydrogen projects, as well as the value chain, will exceed $500 billion by 2030. This is based on the following: electrolyzers, i.e. device in which hydrogen and oxygen can be decomposed using electric current. The hydrogen is stored in the form of final energy and can be used for a wide range of purposes. Plug Power has been a market leader in this field, making the stock even more interesting in spite of recent volatility.

Li Auto offers a China-based EV play

Li Auto’s potential return on investment should also be considered. The company was established in 2015. Analysts expect a nearly 47 percent price appreciation. It is directly competing with Tesla and Nio.

Target price for average is 20 analyst estimatesIt costs $44.40. This company launched its first and most successful model, the electric hybrid SUV Li ONE in December 2019. It was updated in May of this year. The price range for the vehicle depends on its features and is between $29,000 to $76,000. The vehicle was among China’s top ten most popular vehicles across all fuel types in 2020. Li Auto has set yet another monthly delivery record, this time in November. China’s electric car manufacturer reported a total 13,485 Li ONEs being delivered in November. It is an increase of 190% compared with the last month. In comparison, Nio only sold 10,705 cars during the month. same periodWhile Xpeng is (NYSE:) came in15.613. Li Auto is currently delivering 76404 units.

Li Auto reported a 3rd quarter profit increasedThe company’s revenues grew nearly 230% from the previous quarter. Li Auto saw a 33% increase in sales, surpassing rivals Nio and Xpeng.

Li Auto anticipates selling 30,000-30,000 cars in the fourth quarter. It would mean a nearly 100 percent year-on-year growth. Changzhou’s production plant has a capacity to produce 100,000 units annually, and can easily be increased to make it 200,000.

Valuation-wise, Li Auto (6.8x), is cheaper than Nio (7.8x), and Xpeng (10.3x) based upon forward EV/sales ratios. InvestingPRO data.

Li Auto will continue to be benefited by strong domestic demand for electric cars. According to a report by, the Chinese market for electric vehicles was worth $98 billion in 2019. It is projected to experience a 31 percent compound annual growth rate (CAGR) over the 2021-2026 forecast period. Mordor Intelligence.

Overall, Li Auto looks very promising. It should be on your watchlist for investors interested in electric mobility.

There are other optionsOther companies that have greater upside potential in the e–mobility sector are BYD (OTC) Ltd Class A(SZ:) (+17.37%), BorgWarner (+16.87%) and NVIDIA (+15.5%).

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