In this article, we discuss the 10 EV stocks popular on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 EV Stocks Popular on Reddit.
The global chip shortage has hit the production of electric vehicles (EVs) around the world in recent months but EV stocks have paradoxically rallied amid this decline, perhaps because of the appeal of the new technology and the rapidly increasing demand of EVs. Electric vehicles are forecast to reach 7% of all global car sales this year, a 66% year-on-year growth, to reach over 5 million units sold. According to Research and Markets, a market intelligence firm, EV sales will represent nearly half of annual global vehicle sales by the end of this decade.
Growing EV markets in Europe, China, and the United States are likely to lead this boom. These regions are also expected to produce the bulk of the EVs shipped to other parts of the world. Consumer and government spending into the sector are also likely to increase as carbon emissions control becomes central to policymaking. A European proposal to push combustion engines off the road by 2035 has already won many backers.
Professional services firm Deloitte expects the EV industry to grow at a compound annual growth rate of 29% in the next ten years. In a report, the firm has forecast that China will likely control close to 50% of the global EV market by 2030, with Europe and the US following behind at 27% and 14% respectively. Some of the factors that will likely influence the pace of this growth include consumer sentiment, policy and regulation, original equipment manufacturing strategy and the role of corporate companies.
Retail traders are expected to play an important part in this whole story. These traders, who like to invest in growth stocks, have already poured hundreds of millions into equities this year. The enthusiasm with which a new generation of investors has embraced the stock market is evident from a cursory glance at finance forums on Reddit. In fact, since these forums became relevant to the moving of markets after the GameStop short-squeeze saga, they have also become the subject of probes and scrutiny from big finance.
These forums have helped drive an incredible rally into EV stocks this year. Some of the top EV stocks presently popular on Reddit include Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV), among others discussed in detail below. In the next few years, financial incentives, access restrictions, emissions targets, and the buildup of EV infrastructure will all help the EV industry to new highs. The recent initial public offering of Rivian, the biggest IPO in the US this year, is a testament to where the market is headed.
Our Methodology
These were picked from a careful assessment of comments published on different Reddit forums over the past twenty-four hours. The details of each stock are mentioned alongside a discussion around analyst ratings and business fundamentals to provide readers with some context for their investment decisions.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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EV Stocks Popular on Reddit
10. Canada Nickel Company Inc. (OTC:CNIKF)
Number of Hedge Fund Holders: N/A
Canada Nickel Company Inc. (OTC:CNIKF) is a Toronto-based firm that explores and discovers nickel sulphide assets. It was founded in 2019 and has a market cap of more than $207 million. One of the premier assets of the company is the Crawford Nickel-Cobalt Sulphide Project in northern Ontario. The nickel firm has 100% ownership rights over the property. The 52-week price range of the stock lies between $1.2 and $3.6.
Canada Nickel Company Inc. (OTC:CNIKF) stands to benefit from the massive increase in nickel demand as nickel is an important component of electric vehicle batteries. As EV sales increase, so does the growth of the company. The location of the Ontario project is ideal for US-based EV firms as well.
Roth Capital analyst Matthew Farwell recently initiated coverage of Canada Nickel Company Inc. (OTC:CNIKF) stock with a Buy rating and a price target of C$6.2, noting that the Crawford Nickel-Cobalt Sulphide Project could be one of the largest nickel mines in the world when finished in 2025.
Just like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV), Canada Nickel Company Inc. (OTC:CNIKF) is one of the stocks attracting the attention of retail investors.
9. Ozop Energy Solutions, Inc. (OTC:OZSC)
Number of Hedge Fund Holders: N/A
Ozop Energy Solutions, Inc. (OTC:OZSC) makes and sells renewable energy products. Some of these include power supplies, high voltage battery chargers, aircraft ground support equipment, and power electronic modules. In late October, the firm had announced that it had received an order for the delivery of three power units from a commercial electric aircraft firm. One unit would consist of a 100KW power supply and a large 100 KW load bank.
In June this year, Ozop Energy Solutions, Inc. (OTC:OZSC) stock had soared after the firm revealed that it had received an order for setting up 38 EV charging stations across New York. The order came with a pre-incentive of $2 million.
In March, Ozop Energy Solutions, Inc. (OTC:OZSC) secured a 25-year lease on a property to build a lithium-ion battery storage facility. These batteries are used in EVs and automakers are investing billions of dollars annually into their production.
8. Arcimoto, Inc. (NASDAQ:FUV)
Number of Hedge Fund Holders: 4
Arcimoto, Inc. (NASDAQ:FUV) markets three-wheeled electric vehicles. Even though the short interest on the stock is at an astronomical 33%, the company is the subject of intense buying interest from retail investors who point to growth catalysts like the sale of 68 EVs and the production of 74 in the third quarter despite supply chain issues that have hampered the process of manufacturing across the globe.
In October, Arcimoto, Inc. (NASDAQ:FUV) had announced that test runs for the Arcimoto Flatbed pilot vehicles had been very well received in local businesses. As part of a plan to mass produce these, the company is building a new factory site as well.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $5.1 million in Arcimoto, Inc. (NASDAQ: FUV), down from 5 in the previous quarter worth $5 million.
7. Ideanomics, Inc. (NASDAQ:IDEX)
Number of Hedge Fund Holders: 6
Ideanomics, Inc. (NASDAQ:IDEX) offers fintech and other services to advance the adoption of electric vehicles. The stock has soared since late August after the firm announced that it had acquired VIA Motors International, a Utah-based EV developer, for $450 million. VIA aims to market electric buses and trucks for commercial purposes in the United States and Canada. VIA remains a distinct business unit after the purchase.
Ideanomics, Inc. (NASDAQ:IDEX) has also recently announced that it will be increasing its stake in Energica, an Italian electric motorcycle manufacturer, to 70%. Energica is on a solid growth trajectory, doubling motorcycle sales in 2020 and has had a good start to this year as well.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $34 million in Ideanomics, Inc. (NASDAQ: IDEX), down from 7 in the preceding quarter worth $20 million.
6. Lordstown Motors Corp. (NASDAQ:RIDE)
Number of Hedge Fund Holders: 12
Lordstown Motors Corp. (NASDAQ:RIDE) is an automotive firm that makes and sells full-sized electric pickup trucks. The firm posted earnings for the third quarter on November 11, beating market estimates on earnings per share by $0.02. The stock gained 24% the same day after the firm announced that the manufacturing and deliveries of Endurance, the flagship EV marketed by the firm, will begin in the third quarter of 2022.
Lordstown Motors Corp. (NASDAQ:RIDE) has built a strategic partnership with Foxconn, a Taiwan-based manufacturing firm, to make components for Endurance. The partnership includes the sale of a Lordstown facility to Foxconn for $230 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm OZ Management is a leading shareholder in Lordstown Motors Corp. (NASDAQ:RIDE) with 902,900 shares worth more than $9.9 million.
In addition to Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV), Lordstown Motors Corp. (NASDAQ:RIDE) is one of the stocks on the radar of growth investors.
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Disclosure. None. 10 EV Stocks Popular on Reddit is originally published on Insider Monkey.
