In this article, we discuss the 5 cheap EV stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to Forget Tesla: 10 Cheap EV Stocks to Buy Now. At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the cheap EV stocks to buy:
5. Stellantis N.V. (NYSE: STLA)
Number of Hedge Fund Holders: 21
Price as of August 13, 2021: $21.70
Stellantis N.V. (NYSE: STLA) is a Netherlands-based company that develops and sells different types of automotives. It is ranked fifth on our list of 10 cheap EV stocks to buy now. It has a market cap of more than $66 billion and posted over $74 billion in revenue last year. The firm has already announced a jam-packed EV lineup this year, with 11 battery electric vehicles and 10 plug-in hybrids set to debut on the market over the next two years. The firm controls more than 23% of the EV market in South America, making it the largest EV firm in the region.
On August 4, investment advisory JPMorgan reiterated an Overweight rating on Stellantis N.V. (NYSE: STLA) stock and raised the price target to EUR27 from EUR20. Jose Asumendi, an analyst at the firm, issued the ratings update.
At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $751 million in Stellantis N.V. (NYSE: STLA), up from 19 in the previous quarter worth $359 million.
4. Fisker Inc. (NYSE: FSR)
Number of Hedge Fund Holders: 22
Price as of August 13, 2021: $15.15
Fisker Inc. (NYSE: FSR) is placed fourth on our list of 10 cheap EV stocks to buy now. The firm is headquartered in California. It engages in the development and sale of electric vehicles. In earnings results for the second quarter, posted on August 5, the firm reported that cash and equivalents at the end of June were $962 million. The net cash used in operating activities was $28 million and the cash paid for capital expenditures was $0.3 million. The company has a market cap of over $5.3 billion.
On August 9, investment advisory Morgan Stanley resumed coverage of Fisker Inc. (NYSE: FSR) stock with an Overweight rating and a price target of $40, with a bull case target of $90, identifying the firm as one of the highest rated de-SPAC EV firms.
At the end of the first quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $337 million in Fisker Inc. (NYSE: FSR), up from 18 the preceding quarter worth $146 million.
3. ChargePoint Holdings, Inc. (NYSE: CHPT)
Number of Hedge Fund Holders: 24
Price as of August 13, 2021: $25.18
ChargePoint Holdings, Inc. (NYSE: CHPT) is ranked third on our list of 10 cheap EV stocks to buy now. The firm is based in California and markets charging solutions for electric vehicles. On August 11, as part of a plan to expand in Europe, the firm announced that it had purchased ViriCiti, a Netherlands-based electric fleet manager, for close to $88 million. The Dutch firm is the largest electric solutions provider for commercial fleets in the region. The firm stands to benefit from an EU plan to phase out the internal combustion engine by 2035.
On July 29, investment advisory DA Davidson initiated coverage of ChargePoint Holdings, Inc. (NYSE: CHPT) stock with a Buy rating and a price target of $30, noting that the firm owned the largest active charging port count in North America and had an emerging presence in Europe.
At the end of the first quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $207 million in ChargePoint Holdings, Inc. (NYSE: CHPT).
2. NIO Inc. (NYSE: NIO)
Number of Hedge Fund Holders: 28
Price as of August 13, 2021: $42.47
NIO Inc. (NYSE: NIO) is a Chinese firm that makes and sells electric vehicles. It is placed second on our list of 10 cheap EV stocks to buy now. In earnings results for the second quarter, posted on August 11, the firm reported earnings per share of -$0.03, beating market predictions by $0.08. The revenue over the period was $1.3 billion, up 127% compared to the revenue over the same period last year and beating market estimates by $20 million. The firm also boosted delivery guidance for the third quarter to up to 25,000 EVs from up to 22,000 EVs.
On July 9, investment advisory HSBC upgraded NIO Inc. (NYSE: NIO) stock to Buy from Hold and raised the price target up to $69 from $54. Yuqian Ding, an analyst at the firm, issued the ratings update.
At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NIO Inc. (NYSE: NIO), down from 34 in the preceding quarter worth $2.6 billion.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE: NIO) was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
1. Ford Motor Company (NYSE: F)
Number of Hedge Fund Holders: 49
Price as of August 13, 2021: $13.90
Ford Motor Company (NYSE: F) is a Michigan-based automaker. It is ranked first on our list of 10 cheap EV stocks to buy now. The firm has a market cap of over $55 billion and posted more than $127 billion in revenue last year. On August 4, while reporting vehicle sales numbers for July, the firm reported that electric vehicle sales of the company had jumped more than 57% with the sale of 9,103 vehicles over the period. Reservations for the F-150 Lightning, the newest EV marketed by the firm, had exceeded 120,000.
On July 16, investment advisory Bank of America maintained a Buy rating on Ford Motor Company (NYSE: F) stock and raised the price target to $18 from $17, noting that the firm was expected to beat market expectations on earnings.
At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Ford Motor Company (NYSE: F), up from 41 in the preceding quarter worth $1.6 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.”
You can also take a peek at 10 Best EV SPACs to Buy Now and 10 Best Lithium and Phosphate Stocks to Buy Now.
