3 Electric Vehicle Stocks Under $10 That Will Gain More Than 70% According to Analyst Estimates Together with government incentives, better performance and lower recurring costs should drive electric vehicle (EV) sales. Moreover, the initiatives of governments worldwide to transition to zero-emission vehicles should power the...
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Together with government incentives, better performance and lower recurring costs should drive electric vehicle (EV) sales. Moreover, the initiatives of governments worldwide to transition to zero-emission vehicles should power the industry's growth over the short- and long term. With that, Wall Street analysts expect low-priced electric vehicle stocks Faraday Future (FFIE), Electric Last Mile (ELMS), and Hyzon Motors (HYZN) to gain more than 70% in price in the near term. So, we think it could be worth adding these stocks to one's watchlist. Let's examine these names.
Although last year was rough for the automotive industry, the strong demand for electric vehicles (EVs) was a bright spot. Increasing fuel prices and government incentives for consumers to replace internal-combustion vehicles with EVs have boosted sales this year also. To meet the rising demand, automakers are increasingly investing in the EV space. Indeed, the global EV market is expected to reach $812.89 billion by 2028, registering a 19.8% CAGR.
EV sales increased 160% year-over-year in the first half of 2021 to 2.6 million units, representing 26% of new sales in the global automotive market. EV sales are surging due to improvements in battery technology, declining costs, more charging infrastructures, and new attractive models from automakers, among other factors. Furthermore, President Biden wants EV sales to account for 50% of all new vehicle sales by 2030.
Therefore, we think it could be worth watching EV Faraday Future Intelligent Electric Inc. (FFIE), Electric Last Mile Solutions, Inc. (ELMS), and Hyzon Motors Inc. (HYZN) because Wall Street analysts expect these below-$10 stocks to gain more than 70% in the near term.
Click here to checkout our Electric Vehicle Industry Report for 2021
Faraday Future Intelligent Electric Inc. (FFIE)
FFIE is a global shared intelligent mobility ecosystem company. The Los Angeles-based concern company provides solutions that integrate clean energy, artificial intelligence (AI), and the Internet. The company sells and distributes electric vehicles and related products in the United States and internationally.
This month, FFIE appointed Walter J. McBride as its Chief Financial Officer. The company believes that McBride will contribute his hands-on experience in strategic planning, capital markets, and infrastructure development to the growth and development of FFIE in the next phase.
Last month, FFIE announced an upcoming milestone in its manufacturing process for the ultimate intelligent Tec luxury FF 91 EV. FFIE is on track to launch the vehicle next year.
In its last quarterly report, FFIE's cash came in at $17,870 for the period ended June 30, 2021.
FFIE's EPS is estimated to grow 75.9% in the current year, and the consensus revenue expectation is $293.13 million for the fiscal year ending December 2022. The stock has soared 7.6% in price over the past five trading days.
Closing the last trading session at $9.11, the $17 average analyst price target represents an 86.6% potential upside.
Electric Last Mile Solutions, Inc. (ELMS)
ELMS is a commercial electric vehicle solutions company. The Auburn Hills, Mich., company's technology has been designed to deliver solutions that combine integrated deep data analytics, customization, and sustainable engineering. ELMS' vehicles include Urban Delivery and Urban Utility. The company also intends to develop a hardware and software stack to allow electric control units (ECUs) to support over-the-air (OTA) updating and data collection.
This month, due to strong market demand, ELMS announced that it would launch its Urban Utility vehicle—a Class 3 commercial electric vehicle—next year. With the introduction of the Urban Utility vehicle, ELMS should expand its total addressable market in North America to $130 billion.
During the third quarter, ended September 30, 2021, ELMS's revenue was $136,000. The company's gross margin was $2,000. And its cash and cash equivalents increased 468% to $143.15 million as of September 30, 2021, from $25.21 million as of December 31, 2020.
ELMS' revenue is expected to increase 3,457.4% year-over-year to $ 492.34 million in its fiscal 2022. Its EPS is estimated to grow 33.8% next year. The stock has surged 34.1% in price over the past month and 5.4% over the past three months.
The $15.33 consensus price target represents a 70.7% potential gain from its $8.98 last closing price.
Hyzon Motors Inc. (HYZN)
Incorporated in 2020, HYZN in Honeoye Falls, N.Y., is a global supplier of zero-emissions hydrogen fuel cell-powered commercial vehicles, including heavy-duty trucks, buses, and coaches. The company is in the initial stages of designing its SuperH2Truck—a hydrogen-powered truck with a fuel cell optimized chassis. HYZN serves shipping and logistics companies, retail customers with distribution networks, mining, and port equipment manufacturers and operators.
This month, HYZN announced a joint demonstration project with Zhangjiagang Haili Terminal Co., Ltd., a subsidiary of Sha Steel Group, the private steel enterprise. The implementation of Hyzon fuel cell electric trucks at Sha Steel should allow HYZN an unparalleled opportunity to develop solutions for the industry.
HYZN's revenue came in at $962,000for the third quarter, ended September 30, 2021. The company's net income was $32.25 million, compared to a net loss of $556,000in the prior-year quarter. Its comprehensive income amounted to $32.12 million, compared to a $556,000 comprehensive loss in the third quarter of 2020. Also, the company's EPS was $0.13 during the period.
Analysts expect HYZN's revenue to increase 429.5% year-over-year to $182.48 million in its fiscal 2022. The company's EPS is estimated to increase 28.6% next year. The stock has gained 24.5% in price over the past month.
Closing its last trading session at $7.74, the $13.33 average analyst price target represents a 72.2% potential upside.
Click here to checkout our Electric Vehicle Industry Report for 2021
FFIE shares fell $0.51 (-5.60%) in premarket trading Tuesday. Year-to-date, FFIE has declined -8.90%, versus a 26.24% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.
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