In this article, we discuss the 5 EV stocks popular on Reddit. If you want to read our detailed analysis of these stocks, go directly to the 10 EV Stocks Popular on Reddit.
5. Workhorse Group Inc. (NASDAQ:WKHS)
Number of Hedge Fund Holders: 13
Workhorse Group Inc. (NASDAQ:WKHS) makes and sells battery electric vehicles and aircraft. The company has a market cap of $1 billion and posted $1.3 million in revenue last year. The short interest on the stock is over 33%. The firm even missed market estimates on earnings for the third quarter despite a change in higher management that saw a new CEO take charge and promise rapid recovery.
Reports of a government probe into Workhorse Group Inc. (NASDAQ:WKHS) has also hit the stock. The continued interest of Redditors in the firm suggests that it might be a short-squeeze play like the GameStop and AMC Entertainment saga.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $60 million in Workhorse Group Inc. (NASDAQ: WKHS), down from 16 in the preceding quarter worth $96 million.
4. Canoo Inc. (NASDAQ:GOEV)
Number of Hedge Fund Holders: 16
Canoo Inc. (NASDAQ:GOEV) is a mobility technology company based in California. The firm, which markets electric vehicles, recently announced that it had reached an agreement with Japanese firm Panasonic for the supply of batteries it needs to start production of lifestyle electric vehicles in the fourth quarter of 2022. The stock has also benefited from the successful passage of the American Jobs Plan that will incentivize EV production in the US.
Roth Capital analyst Craig Irwin has a Neutral rating on Canoo Inc. (NASDAQ:GOEV) stock with a price target of $7. The analyst said in a note on September 20 that the “unique design” of the vehicles of Canoo “resonates with a range of potential buyers”.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $37 million in Canoo Inc. (NASDAQ:GOEV), the same as in the previous quarter worth $14 million.
3. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 19
XPeng Inc. (NYSE:XPEV) makes and sells smart electric vehicles. The company has recently announced that it will be launching a new smart EV model at the 19th Guangzhou International Automobile Exhibition. According to reports, the new model will be a new version of the G3 SUV the company already markets. The firm is one of the largest EV makers in China and reported a 233% year-on-year growth in EV deliveries in October.
Citi analyst Jeff Chung recently reiterated a Buy rating on XPeng Inc. (NYSE:XPEV) stock and raised the price target to $87 from $53.4, noting that EV makers were set to gain market share in the coming years.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $784 million in XPeng Inc. (NYSE:XPEV), the same as in the preceding quarter worth $976 million.
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 55
Ford Motor Company (NYSE:F) is a Michigan-based automaker that is investing heavily in electric vehicles. The company was recently awarded a massive $8.6 billion government contract for the delivery of 2022 light vehicles that include sedans, light trucks and SUVs. The company has a market cap of $77 billion and posted over $127 billion in revenue last year. Ford expects to face tough competition from Rivian and General Motors in the electric pickup space.
On October 28, investment advisory Benchmark maintained a Buy rating on Ford Motor Company (NYSE:F) stock and raised the price target to $20 from $18. Michael Ward, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.10 billion in Ford Motor Company (NYSE:F), up from 49 in the preceding quarter worth $2.19 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) is one of the most popular stocks on Reddit and this has certainly helped the company become not only the largest EV maker but also jump amongst the biggest companies in the world in terms of market capitalization. For the first time since 2016, founder Elon Musk is selling a portion of the stock he owns in the company. In the past few weeks, he has sold nearly 6.4 million shares worth almost $7 billion. This has hit the stock, which is down 15% from the peaks reached in October.
Analysts are still bullish on Tesla, Inc. (NASDAQ:TSLA). Jefferies analyst Philippe Houchois recently raised the price target on the stock to $1,400 from $950 and kept a Buy rating on the shares.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 in the previous quarter worth $10 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
