The Next Phase of the EV stock Boom (NASDAQ: NKLA) (OTC US: KULR) (NYSE: NIO)
February 02, 2021 at 08:28 AM EST
Along with cryptocurrency, cannabis, high short interest, and biotech, the electric vehicle space is in the top tier as far as interest from the retail investing crowd so far in 2021.
Since retail investors have come to dominate this phase of the bull market, active investors would be wise to scope out the space with an eye toward identifying the EV names that have the potential to ascend into prominence ahead.
With that in mind, we take a closer look at a few stocks aligned with that theme that may deserve some extra attention, including: Nikola Corporation (NASDAQ: NKLA), KULR Technology Group Inc (OTC US: KULR), and Nio Inc. – ADR (NYSE: NIO).
Nikola Corporation (NASDAQ: NKLA) frames itself as a company that is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today.
However, the stock has fallen on hard times after some information emerged that framed this story as a bit more smoke and mirrors than substantive IP. Now, however, some analyst firms are starting to ring the bell and suggest this one may be past the bulk of the bad news. That said, significant questions remain.
Nikola Corporation (NASDAQ: NKLA) recently announced that Nikola and Republic Services (NYSE: RSG) have discontinued their collaboration on refuse truck development. The goal of the collaboration was to design and build an industry-first fully integrated refuse truck based on a zero-emissions battery-electric drive platform and body while also integrating multiple new systems into a new state-of-the-art vehicle.
“This was the right decision for both companies given the resources and investments required,” said Nikola CEO Mark Russell. “We support and respect Republic Services’ commitment to achieving environmentally responsible, sustainable solutions for their customers. Nikola remains laser-focused on delivering on our battery-electric and fuel-cell electric commercial truck programs, and the energy infrastructure to support them.”
The stock has been acting well over recent days, up something like 13% in that time. Shares of the stock have powered higher over the past month, rallying roughly 54% in that time on strong overall action.
Nikola Corporation (NASDAQ: NKLA) had no reported sales in its last quarterly financial data. In addition, the company is battling some balance sheet hurdles, along with a constant war against the critics. One thing that may be in its favor is the potential for a short squeeze, which has been a dominant theme of late.
KULR Technology Group Inc. (OTC US: KULR) is a more speculative name of this an emerging player in the EV battery space. The company’s advisory board features the co-founder of BYD, which is backed by Warren Buffet (as covered on CNBC and logged via BusinessWire), and it has positioned itself as an interesting battery platform game-changer that may catch fire as market participants shift focus to battery tech plays.
The company develops, manufactures and licenses next-generation carbon fiber thermal management technologies for batteries and electronic systems. It is basically a hedge for L-Ion battery technology by removing downside risk for EV manufacturers through beneficially shifting the probability of negative battery events.
KULR Technology Group Inc, (OTC US: KULR) offers lithium-ion battery thermal runaway shields; fiber thermal interface materials; phase change material heatsinks; HYDRA TRS battery storage bags; internal short circuit device; and CRUX cathodes. Its technologies are used in electric vehicles and autonomous driving systems, artificial intelligence and cloud computing, and energy storage and 5G communication technologies.
The company just announced that its Co-Founder and Chief Executive Officer, Michael Mo, recently participated in a live interview on the “Big Biz Show,” an Emmy-award winning nationally syndicated TV and radio show. A replay of the interview is available for viewing on the Company’s website at https://kulrtechnology.com/videos.
KULR shares have performed well, besting the majority of the market, up 50% since last summer. That said, the stock hasn’t kept up with the larger EV space, which could simply be a matter of a lack of visibility. Simply put, it may be that KULR hasn’t been discovered by the crowd yet despite its prepotency, thematic affiliation, and recent accomplishments.
KULR Technology Group Inc. (OTC US: KULR) is an early-stage more speculative player, but with growing exposure and a widening base of core industry ties. The big commercial performance is still out in front of this one provided the execution comes into place in the quarters ahead.
Nio Inc. – ADR (NYSE: NIO) trumpets itself as a company that designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United Kingdom, and Germany.
The company offers five, six, and seven-seater electric SUVs. It is also involved in the provision of energy and service packages to its users; marketing, design, and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities.
Nio Inc. – ADR (NYSE: NIO) most recently provided its January 2021 delivery results. According to the release, NIO delivered 7,225 vehicles in January 2021, a new monthly record representing a strong 352.1% year-over-year growth.
Reportedly, deliveries consisted of 1,660 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV, 2,720 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 2,845 EC6s, the Company’s 5-seater premium electric coupe SUV. As of January 31, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 82,866 vehicles.
The stock has suffered a bit of late, with shares of NIO taking a hit in recent action, down about -5% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 17% in that time on strong overall action.
Nio Inc. – ADR (NYSE: NIO) generated sales of $654.2M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 24.7% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($3.3B against $1.6B).
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