Nov. 22, 2020
Last week has seen an incredible rise in stocks of companies handling with electric vehicles in different manners and stages. We have already faced the incredible jump seen with the two Chinese EV automakers NIO and XPeng. Here is a brief summary of what just happened to a few North American EV related companies and to their stocks.
AYRO Inc. is a U.S-based designer and manufacturer of purpose-built, automotive-grade, all-electric vehicles. AYRO delivers industry-leading value to a rapidly expanding market where the need for high-quality, cost-effective, zero-emissions vehicles and technology platforms is becoming increasingly important.
The stock (NASDAQ: AYRO) jumped more than 30% on Friday and more than doubled its value during the week.
ElectraMeccanica Vehicles Corporation is a Canadian designer and manufacturer of environmentally efficient electric vehicles (EVs) headquartered in Vancouver. Established in 2015, the company’s flagship vehicle is the purpose-built, single-seat three wheeled Electric Vehicle called the SOLO.
The stock (NASDAQ: SOLO) jumped more than 12% on Friday and almost doubled its value during the week.
Lordstown Motors Corp
Lordstown Motors Corporation is an American automobile manufacturer of electric vehicles, located in Lordstown, Ohio, and is based in the former Lordstown Assembly which previously belonged to General Motors.
Its Lordstown Endurance is an all-wheel-drive, electric pick-up.
The stock (NASDAQ: RIDE) doubled its value since the beginning of November and now reaching $26,46 per share.
Switchback Energy Acquisition Corporation
Switchback Energy Acquisition Corporation is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The company intends to focus their search for a target business in the energy industry in North America.
The stock (NYSE: SBE) doubled in value since the beginning of November and recently jumped up even more after the news of its merger with ChargePoint, an EV infrastructural company operating the largest online network of independently owned EV charging stations. After the completion of the deal, the merged company will be named ChargePoint Holdings and will be trading on the NYSE.
Workhorse Group Incorporated
Workhorse Group Incorporated is an American manufacturing company based in Cincinnati, Ohio, currently focused on manufacturing electrically powered delivery and utility vehicles. The company claims to have “more electric delivery vehicles on the road than any other company”.
The stock (NASDAQ: WKHS) is up more than 60% this month and now trades at $25,78 per share.
Why did EV stocks prices rise so high?
This must be a consequence of the trend that can be seen across Wall Street and that surely originated by the fear to be missing the next Tesla or NIO rally.
Investors’ focus on U.S. based EV companies might also be explained by the election results, considering Biden’s plan to favour the shift to renewable energies.
Is this the time to buy? That’s the million dollar question. Some of the many EV related stocks are already overpriced, although the new Tesla must still be hiding somewhere. In conclusion, now it’s the time to be very careful about the reality behind the titles and promises, paying attention to the management teams and the financials.