Electric vehicles (EVs) have been dubbed the “future of mobility” because they provide a cleaner alternative to vehicles with highly polluting internal combustion engines. EV stocks have garnered significant investor attention over the past few years, with governments worldwide focusing increasingly on addressing climate change concerns.
The $1.2 trillion bipartisan Infrastructure Investment and Jobs Act (IIJA), which President Biden signed last November, allocates $30.70 billion to EVs and their related charging infrastructure. According to a Research and Markets report, EVs are expected to represent 48% of all new cars sold in 2030.
Given this backdrop, we think quality EV stocks Rivian Automotive, Inc. (RIVN), Arrival (ARVL), and Workhorse Group Inc. (WKHS), which are down more than 30% in price year-to-date, should witness a solid rebound. Wall Street analysts expect these stocks to grow more than 100% in 2022. So, it could be worth adding these stocks to one’s watchlist.
Rivian Automotive, Inc. (RIVN)
Recently listed RIVN, which is headquartered in Irvine, Calif., designs and manufactures EVs, accessories, and services. The company has now commenced delivery of its first-generation consumer vehicle, R1T. It also provides advanced technologies, such as advanced driver assistance systems (ADAS), Driver+ to enhance the driving experience of its customers.
On December 16, 2021, RIVN announced that its second U.S. plant would be established in Georgia, which will help expand its manufacturing operations. Construction of the facility is expected to begin this year, with vehicle production slated for 2024. The facility is expected to produce up to 400,000 vehicles annually.
RIVN’s cash and cash equivalents for the nine months ended Sept. 30, 2021, came in at $5.15 billion, compared to $2.97 billion for the fiscal year ended Dec. 31, 2020, while its total current assets were $5.34 billion, compared to $3.01 billion for its fiscal year ended Dec. 31, 2020. The company’s revenue was $1 million for the third quarter, ended Sept. 30, 2021.
Analysts expect RIVN’s EPS and revenue for its fiscal year 2022 to increase 25% and 5,902.6%, respectively, year-over-year to $4.99 and $3.53 billion. The stock has declined 45% in price year-to-date to close the last trading session at $57.12. However, Wall Street analysts expect the stock to hit $133.21 in the near term, indicating a potential 133.21% upside.
Based in Luxembourg, ARVL is transitioning to electric vehicles by creating zero-emission, desirable, sustainable, and equitable products. The company also offers technology, development, supply chain, automotive, mobility, and fintech solutions.
On Dec. 6, 2021, ARVL announced that it was establishing a High Voltage Battery Module (HVBM) assembly plant on Charlotte’s West Side with an investment of approximately $11.50 million. ARVL’s CEO Mike Ableson said, “By bringing the assembly of our proprietary High Voltage Battery Modules in-house, we’re striving to be as vertically integrated as possible.”
ARVL’s non-current liabilities for the nine months ended Sept. 30, 2021, came in at €567.73 million ($632.89 million), versus €296.36 million ($330.37 million) for the fiscal period ended Dec. 31, 2020. Also, its current assets were €471.03 million ($525.08 million), compared to €153.52 million ($171.13 million) for the fiscal year ended Dec. 31, 2020. The company’s finance income came in at €27.95 million ($31.15 million), compared to €2 million ($2.22 million) in the year-ago period.
For its fiscal year 2022, ARVL’s EPS is expected to increase 64% year-over-year to $0.4. The stock has declined 57.4% in price year-to-date to close the last trading session at $3.16. However, Wall Street analysts expect the stock to hit $16.50 in the near term, indicating a potential 422.1% upside.
Workhorse Group Inc. (WKHS)
Loveland, Ohio-based WKHS is a technology company that is focused on providing solutions to the commercial transportation sector. The company manufactures electric delivery trucks and drone systems. Its products include C-series electric delivery trucks and package delivery aircraft, named HorseFly. It also offers a Metron telematics systems platform, which allows users to track and monitor the performance of their vehicles.
On Aug.12, 2021, WKHS entered a pilot program with the U.S. Department of Agriculture’s Natural Resources Conservation Service to demonstrate its ability to provide small Unmanned Aerial Systems (sUAS) as a service to support NRCS efforts in Mississippi. WKHS’ President-Aerospace John Graber said, “Engaging in this pilot agreement with the NRCS is the first step in expanding our footprint beyond package delivery and the last mile delivery space.”
WKHS’ net loss for the third quarter, ended Sept. 30, 2021, came in at $81.11 million, versus an $84.13 million loss in the year-ago period. The company’s sales, net of returns, and allowances for the nine months ended Sept. 30, 2021, increased 55% year-over-year to $1.14 million. Also, its cash and cash equivalents for the nine months ended Sept. 30, 2021, increased 187.2% year-over-year to $230.42 million.
Analysts expect WKHS’ EPS for the quarter ending March 31, 2022, to increase 84.7% year-over-year to $0.15. Its revenue for fiscal 2022 is expected to increase 1,300.8% year-over-year to $17.37 million. The stock has declined 33.5% in price year-to-date to close the last trading session at $2.90. However, Wall Street analysts expect the stock to hit $13.50 in the near term, indicating a potential 365.5% upside.
RIVN shares fell $0.12 (-0.21%) in premarket trading Monday. Year-to-date, RIVN has declined -44.91%, versus a -6.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.3 Electric Vehicle Stocks Down More Than 30% That Wall Street Predicts Will Grow More Than 100% in 2022 appeared first on StockNews.com