With a growth potential that seems impossible to measure at times, the EV market is undoubtedly one of the most fascinating stories being told over the last several years.
Simply put, the future is finally here.
Of course, it goes without saying that investors have a massive opportunity to reap tremendous gains from the industry’s growth trajectory over the next decade.
And as of late, EV stocks have been red-hot, helping to deliver outsized gains to investors amid favorable sales trends.
For investors looking to get in on the space, three companies – Rivian RIVN, Nio NIO, and of course, Tesla TSLA – would all provide exposure. Let’s take a closer look at how each currently stacks up.
Rivian
Rivian positively surprised investors last week with better-than-expected quarterly deliveries, reporting that nearly 13,000 EVs were placed in the hands of consumers throughout the second quarter. The market took the news in stride, sending RIVN shares soaring.
Shares are now up more than 100% on a year-to-date basis, crushing the S&P 500’s impressive 16% gain.
Image Source: Zacks Investment Research
Rivian is expected to deliver quarterly results on August 8th; the Zacks Consensus EPS estimate of -$1.44 indicates a positive 25% change from the year-ago quarter. Further, our consensus quarterly revenue estimate sits at $888 million, implying growth of 150% year-over-year.
Analysts have primarily been bullish regarding the upcoming release, with the quarterly EPS estimate being revised nearly 3% higher over the last several months.
Image Source: Zacks Investment Research
Nio
Nio recently announced that it delivered roughly 10,700 vehicles in June 2023, with total Q2 deliveries totaling 23,520. Impressively, the June tally was well above the 6,155 reported deliveries in May, further reflecting snowballing momentum.
The company posted soft results in its latest release, falling short of the Zacks Consensus EPS estimate by a wide margin. Quarterly revenue totaled roughly $1.5 billion, 8% below expectations and essentially flat from the year-ago period.
Still, similar to RIVN, analysts have become bullish on Nio’s upcoming quarterly release expected on September 6th; the -$0.36 EPS estimate has been revised 12% higher just over the last several months.
Image Source: Zacks Investment Research
It’s worth noting that Nio shares have recently climbed above their 200-day moving average, a level at which the stock previously struggled against. This favorable price action is illustrated in the chart below.
Image Source: Zacks Investment Research
Tesla
We’re all highly familiar with Tesla, the undisputed leader in EVs. The company unveiled its production and delivery numbers recently, and the market was impressed; Tesla delivered over 466,000 EVs and produced nearly 480,000 throughout Q2, representing a quarterly record.
The results helped provide more fuel for Tesla shares, which have already been big-time outperformers year-to-date, up more than 120%.
Image Source: Zacks Investment Research
Tesla’s rapid growth is slated to cool in its current fiscal year (FY23), with earnings forecasted to dip 13% on 23% higher revenues. Still, growth resumes in FY24, with estimates indicating a 30% recovery in earnings and a solid 25% sales bump.
In addition, the company remains in a favorable financial standing; cash and equivalents totaled $22.4 billion at the end of its latest quarter, improving nearly 25% on a year-over-year basis.
Image Source: Zacks Investment Research
Bottom Line
After years of speculation, the EV boom is finally here, and it’s never felt more real.
It goes without saying that investors have a chance to reap unbelievable gains from the industry’s growth as we wade deeper into the waters.
And all three stocks above – Tesla TSLA, Nio NIO, and Rivian RIVN – have been favorites among investors, with solid production/delivery results helping push life into shares.
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
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