In a year riddled with challenges for Tesla Inc. (TSLA), the behemoth of the electric vehicle (EV) realm, investors witnessed a staggering 27.9% drop in its stock since the year’s dawn. As Tesla grapples for market supremacy neck and neck with Boeing (BA) in a race to the bottom of the S&P 500 Index standings for 2024, analysts have rescinded their support, downgrading the once “Moderate Buy” to a lackluster “Hold” consensus rating.
Amidst shifting sands, where the Biden administration tinkers with auto emissions rules, a glimmer of hope emerges as analysts uncover EV stocks shining brighter than the fading star that is TSLA. While some EV companies stumble in this harsh economic landscape, those that tread water are poised to ride the wave of sustainable transportation’s rising tide.
For investors seeking the next big players in the EV revolution, three stocks adorned with a resplendent “Strong Buy” endorsement from industry experts beckon.
Riding the Waves of Change: Beam Global’s (BEEM) Sustainable Energy Crusade
Pioneering the realm of sustainable energy, Beam Global (BEEM) stands as a vanguard, championing innovative creations like their patented EV ARC chargers.
While BEEM has trailed significantly behind the broader equities market over the past year, witnessing a 4.7% dip since January, a silver lining emerges as the stock soars approximately 35% from its lowest point.
BEEM recently clinched a lucrative $1 million agreement with the UK Ministry of Defence for 10 EV ARC systems and an ARC Mobility trailer, slated for deployment in Cyprus. This move not only signifies the global demand for BEEM’s technology but also underscores their expanding footprint in the sustainable energy sphere.
On a separate note, BEEM recently secured a fresh patent on March 19 for a “Self-Contained Renewable Inductive Battery Charger,” solidifying their position as pioneers in EV charging innovation.
Anticipating their earnings report on April 3, analysts foresee a projected loss per share of $0.25 for Q4 of 2023, a marked improvement from the $0.77 loss per share a year prior. For the full fiscal year, Wall Street forecasts a per-share loss of $0.21, a significant drop from the projected $1.19 deficit in fiscal year 2023.
Analysts maintain a sunlit outlook for BEEM, with a unanimous “Strong Buy” consensus. Out of five analysts weighing in, four advocate for a “Strong Buy,” with one suggesting a “Hold.” The average price target stands at $24.25, implying a staggering 258% upside potential.
Revving Up: Li Auto (LI) Makes Strides in the Booming EV Arena
Li Auto Inc. (LI) surges ahead in the bustling EV landscape, crafting premium smart electric SUVs that have garnered a following in China and abroad.
Outshining its competitors over the past 52 weeks, LI boasts a commendable 31.5% uptick over this period.
Financially, Li Auto rides high on success. Their Q4 2023 earnings delivered a pleasant surprise, with an EPS of $0.60 surpassing expert predictions. Quarterly revenue clocked in at a robust $5.88 billion, painting a rosy picture of their financial health.
Stay tuned as Li Auto continues its journey, poised for further growth and innovation in the ever-evolving world of electric vehicles.
Revved Up: A Deep Dive into the EV Market
Li Auto’s Electrifying Future
Li Auto is revving up its engine, eyeing a full-year EPS of $2.06 for 2024, with revenue forecasts reaching an impressive $27.78 billion. Looking ahead to 2025, analysts are painting an even rosier picture with a consensus EPS estimate of $3.17.
The Li ONE Hybrid Hitting the Roads
Unveiling their new hybrid SUV model, the Li ONE Hybrid, Li Auto is making waves in the EV arena. Set to hit the roads in the third quarter of 2024, this bold move showcases Li Auto’s commitment to innovation amidst fierce competition in the electric vehicle landscape.
Bullish Sentiments and Price Targets
Analysts are buzzing with excitement over Li Auto’s future, with an overwhelming consensus leaning towards a “strong buy.” From a mean target price of $52.73, implying a substantial 71.8% potential upside, it’s clear that investors are eager to jump on board the Li Auto train.
Canoo’s Rollercoaster Ride
Canoo Inc. (GOEV) is navigating through choppy waters as they aim to revolutionize the automotive industry with their innovative EV designs and unique business model. However, despite their forward-thinking approach, Canoo’s stock has had its fair share of ups and downs.
The Volatility in EV Stocks
With shares down over 51% from early January highs but rallying 182% from its all-time low, Canoo’s price action highlights the inherent volatility in the EV sector, especially for stocks teetering on the edge of penny territory.
A Cosmetic Move with Real Implications
Executing a 1-for-23 reverse stock split to boost their share price, Canoo aims to stay compliant with Nasdaq’s rules. While such moves may seem cosmetic, they play a vital role in steering clear of penny stock classification and maintaining investor confidence.
Operational Triumphs and Financial Expectations
Receiving approval for their Oklahoma City plant as a Foreign Trade Zone is a significant win for Canoo, expected to drive down costs by $70 million and provide strategic advantages in duty deferrals. With earnings on the horizon, analysts are closely watching for the financial performance of Canoo.
Investor Outlook and Price Targets
Despite recent challenges, analysts remain optimistic on Canoo, with a “strong buy” consensus. With a mean target price of $41.40, representing a staggering 1,100% potential jump from the current price, there’s a glimmer of hope for investors eyeing long-term growth.
The Bottom Line on EV Stocks
Tesla may be facing some hurdles, but the spotlight is now on smaller, emerging EV players. Beam’s innovative charging technology, Li Auto’s steadfast growth, and Canoo’s operational efficiencies position these companies for growth in the continually evolving electric vehicle sector, presenting lucrative opportunities for investors.