Here Are 10 Highest Rated EV Stocks to Watch in 2021 According to Wall Street Analysts

June 15, 2021 10:03 AM EDT

Image: XPeng P5 via XPeng


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Although the wider investing community usually focuses on Tesla (NASDAQ: TSLA) when it comes to the electric vehicle (EV) market, smart investors are also seeking exposure to other electric vehicle stocks that are well-positioned to capitalize on this rapidly-growing market.

According to a report from Million Insights, the global EV market is projected to achieve a valuation of $1.2 trillion by 2027. Here are the highest-rated EV stocks to watch in 2021, based on Wall Street analysts’ ratings compiled by StreetInsider.

1) ElectraMeccanica (NASDAQ: SOLO) - Analyst Rating Score 8.3

ElectraMeccanica has an analyst rating score of 8.3/10 with an average price target of $8.94. Overall Rating on SOLO is “Buy”. In December last year, Stifel analyst J. Brice Chan initiated coverage on SOLO with a “Buy” rating and a price target of $9.00.

“The age of electrification has dawned, and we believe the opportunity in the passenger and commercial electric vehicle (EV) markets is significant. We anticipate compound annual sales growth to exceed 25% in each over 10 years, especially given shifting consumer sentiment, tightening global emissions regulations, continued innovation in battery technology, and continued investment in electrification infrastructure. As the market develops, legacy manufacturers and new entrants have been flooding in, so competitive risks are high, in our view. But ElectraMeccanica has staked an early claim in the affordable commuter niche and the on-demand delivery niche, which, combined with its de-risked manufacturing strategy, present a compelling case for market success, in our view."

2) XPeng (NYSE: XPEV) - Analyst Rating Score 8.2

XPeng has an analyst rating score of 8.2/10 with an average price target of $46.24. Overall Rating on XPeng is “Buy”. Earlier this month, Citi analyst Jeff Chung slightly raised the price target on XPeng to $50.30 (from $50.00) while maintaining a “Buy” rating.

“Terminal value suggests XP > NIO: We estimate the terminal value on XPeng with the following conclusion – Ultimate XPeng market cap is equivalent to US$32.2bn vehicle market cap + US$43bn software earnings market cap (total at US$75.3bn, 87% higher than market cap calculated based on our P/S driven TP). Comparing with NIO, its market cap based on terminal value was only 1% higher than market cap based on P/S driven TP.”

3) TuSimple (NASDAQ: TSP) - Analyst Rating Score 7.1

TuSimple has an analyst rating score of 4.0/10 with an average price target of $54.70. Overall Rating on TSP is “Buy”. Ravi Shankar, an analyst at Morgan Stanley, sees TSP as an “early leader in commercial truck autonomy,” hence the “Overweight” rating and a $48.00 per share price target.

“We view TSP as an early leader in commercial truck autonomy, with access to an $800 bn+ TAM in the US alone and relatively few competitors, which we think it is outpacing. Today, TSP is the only non-hardware, services-driven pure-play on autonomous driving in the public markets – likely in both commercial trucking and passenger cars.”

4) Li Auto (NASDAQ: LI) - Analyst Rating Score 7.0

Li Auto has an analyst rating score of 7.0/10 with an average price target of $36.36. Overall Rating on Li is “Buy”. Goldman Sachs analyst Fei Fang raised the price target on Li Auto to a Street-High $62.00 (from $60.00) while maintaining a Conviction Buy rating.

“We raise forecasts for LI to reflect our upgraded expectations for its structural market shares (i.e. 2023-2025 sales), the optimistic backlog for the new facelift version (i.e. 2021-2022 sales), the expanding ASP, and the expanding gross margin. We currently model LI to grow sales from 33k units in 2020 to 580k units in 2025 (from 545k prior). If materialized, this would be an unprecedented scale of growth in the domestic auto industry.”

5) Fisker (NYSE: FSR) - Analyst Ratings Score 6.4

Fisker has an analyst rating score of 6.4/10 with an average price target of $24.00. Overall Rating on FSR is “Buy”. RBC analyst Joseph Spak recently started the coverage of Fisker EV stock at “Overweight.” For him, the FSR stock offers an “attractive risk/reward profile.”

“Fisker plans to bring BEVs to the market in a differentiated way, utilizing 3rd-party BEV platforms and contract manufacturing. This leverage the billions of dollars the industry is pouring into the market. The underpinnings of a BEV may be even less differentiated than ICE vehicles, so saving capital on building out a platform and production facility, Fisker can spend resources to differentiate the customer experience (design, software, UX and ownership). The easiest analogy to make is to Apple, which designs its products, but has contract manufacturers assemble/ produce them. Fisker has thus far partnered with Magna and Foxconn, which aside from saving money has also led to a faster time to market (first product Ocean SUV is slated for 4Q22). Because of this strategy, we see less risk than other BEV startups towards hitting SoP targets.”

6) Nio (NYSE: NIO) - Analyst Rating Score 6.2

Nio has an analyst rating score of 6.2/10 with an average price target of $56.68. Overall Rating on Nio is “Buy”. Earlier this month, Morgan Stanley analyst Tim Hsiao reiterated an “Overweight” rating and $64.00 price target on NIO.

“NIO reiterated its 2Q21 target of 21k-22k units (7.2k-8.2k units for Jun-21), aiming to largely make up the May delivery shortfall in Jun-21 per the current production/delivery plan. We think supply dynamics will stay fluid but have been improving; this, together with sales channel expansion and growing order backlog, bodes well for volume take-off in 2H21."

7) Arcimoto (NASDAQ: FUV) - Analyst Rating Score 6.0

Arcimoto has an analyst rating score of 6/10 with an average price target of $13.50. Overall Rating on FUV is “Buy”. Colliers Securities analyst Michael Shlisky recently commented:

“Congruent with the numerous happy social-media posts we have noted in recent weeks, FUV is shipping to Florida in earnest. Management noted that another truck full of vehicles was en route as we spoke at the conference. Given the significant number of tourist attractions, closed-village communities, campuses and golf facilities, Florida is a leading pre-order state for FUV. The company plans multiple physical locations in the state, including rental fleets.”

8) Nikola (NASDAQ: NKLA) - Analyst Rating Score 4

Nikola has an analyst rating score of 4.0/10 with an average price target of $24.63. Overall Rating on Nikola is “Neutral”. In May, BTIG analyst Gregory Lewis initiated coverage on Nikola with a “Buy” rating and a price target of $18.00.

"Despite some growing pains over the last year, NKLA continues to move forward with its dual-pronged strategy of helping transition the heavy-duty Class 8 truck market to battery-electric trucks (BETs) and hydrogen fuel cells (FCEV) with 14 Tre BETs in Beta testing ahead of the Tre BET moving into production later this year.”

9) Tesla (NASDAQ: TSLA) - Analyst Rating Score 3.9

Tesla has an analyst rating score of 3.9/10 with an average price target of $636.16. Overall Rating on TSLA is “Neutral”. Here’s what Goldman Sachs analyst Mark Delaney wrote about Tesla last week following the launch of Model S Plaid:

“While the market for the Plaid itself is relatively small, we believe it is an important product given that 1) the Model S Plaid helps illustrate Tesla’s technology leadership position, which we consider one of the reasons for its strong share in EVs (along with other factors including its brand as the leader in EVs and clean transportation, and its ecosystem that includes a charging network and energy generation/storage), and 2) the superior acceleration that EVs provide compared to ICE cars, especially the Model S but even standard Tesla vehicles such as the Models 3 and Y, supports our positive view on EV adoption as these are vehicles consumers want to own (with performance benefits in addition to the increasingly attractive economic considerations and environmental benefits).”

10) Lordstown Motors (NASDAQ: RIDE) - Analyst Rating Score 0.0

Lordstown Motors has an analyst rating score of 0.0/10 with an average price target of $9.0. Overall Rating on RIDE is “Sell”. Amid the latest negative developments, analysts at R.F. Lafferty Downgraded RIDE to Sell with a price target of 3.00 per share, while Morgan Stanley Discontinued Coverage on Lordstown.

Morgan Stanley analyst Adam Jonas commented: "We remove our Underweight rating on RIDE as we believe the market may be underestimating the economic, strategic, political and social risks which are difficult to quantify. The outcomes for the stock may be highly volatile (+ and -) and we prefer to watch from the sidelines."

Q&A

Q: Which Electric Vehicle stocks have a "Buy" analyst rating?

A: According to this list compiled by StreetInsider, 7 EV stocks have a “Buy” rating, 2 “Neutral,” and 1 Sell. Seven Buy-rated stocks are: ElectraMeccanica (SOLO), Xpeng (XPEV), TuSimple (TSP), Li Auto (LI), Fisker (FSR), Nio (NIO), Arcimoto (FUV).

Q: Are Electric Vehicle stocks overpriced?

A: According to this list compiled by StreetInsider, seven EV stocks - ElectraMeccanica (SOLO), Xpeng (XPEV), Li Auto (LI), Fisker (FSR), Nio (NIO), Tesla (TSLA), and Nikola (NKLA) - are trading below their average price target, while three EV stocks - Lordstown Motors (RIDE), TuSimple (TSP), and Arcimoto (FUV) - are currently above the average price target set by Wall Street analysts.



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