8 Best EV Stocks to Buy According to Short Sellers

In this article, we discuss the 8 best EV stocks to buy according to short sellers. We also discuss the latest updates around the industry, along with the future outlook.

While there is a lot of skepticism around the EV industry, it has been growing rapidly, especially over the last few years. According to the International Energy Agency (IEA), EV sales reached almost 14 million units in 2023, a 35% increase from the previous year, with the majority of these sales concentrated in China, Europe, and the United States. The three regions accounted for about 95% of global electric car sales, which shows their dominance in the market. China led the way, with over 8 million new electric car registrations, followed by Europe with nearly 3.2 million, and the United States with 1.4 million.

Exploring Future Scenarios for Electric Road Transport

The IEA’s Global EV Outlook 2024 examined the potential paths to electrifying road transport by 2035. The report presents three scenarios: the Stated Policies Scenario (STEPS), the Announced Pledges Scenario (APS), and the Net Zero Emissions by 2050 Scenario (NZE). The STEPS considers current policies and market trends, the APS assumes that all government pledges will be fully implemented on time, and the NZE outlines a pathway to achieve net zero CO2 emissions by 2050.

The projections show that the global EV fleet could grow significantly by 2035. Under the STEPS, the number of EVs is expected to increase from less than 45 million in 2023 to 525 million by 2035. In the APS, this number could reach 585 million, while the NZE Scenario projects a more ambitious growth to 790 million EVs by 2035.

The report also discussed the growth of electric light-duty vehicles (LDVs), buses, and two/three-wheelers (2/3Ws). LDVs, which include passenger cars and light commercial vehicles, are expected to remain the largest segment of the EV market. Electric buses and 2/3Ws are also projected to see significant growth, especially in regions like China and India, where policy support is strong. However, achieving full electrification of these segments will require continued policy support and technological advancements.

Challenges Faced by the Industry

While the EV industry is growing rapidly, it faces many challenges in its growth journey as it is still a young market. A recent McKinsey survey found that 30% of EV owners worldwide, and 46% in the U.S., are considering making the switch. Despite an increase in EV sales by companies, the growth in EV adoption has slowed down in the U.S. Issues such as not enough charging stations, high costs, and problems with battery life are major reasons for this. On the other hand, countries like Norway, which have good incentives and charging infrastructure, have higher EV adoption and fewer complaints.

Furthermore, the demand for metal necessary for EV batteries is expected to increase significantly over the next few years as reported in our article about 10 Best Battery Stocks To Buy Now According to Short Sellers. This demand could create supply issues. Here’s an excerpt from the article:

“According to BP’s Energy Outlook 2024, the transition to a low-carbon energy system will require a substantial increase in the use of critical minerals, such as copper, lithium, and nickel, essential for supporting the infrastructure and assets needed for this transition. According to the report, the rapid expansion of electric vehicles is projected to reach 1.2 billion (current trajectory) to 2.1 billion (goal to reach Net Zero) by 2050, which will significantly increase the demand for batteries and in turn, higher demand for minerals like lithium and nickel.

Copper demand is expected to rise by 75-100% by 2050, mostly due to its use in EVs and the extension of electricity networks. Lithium demand could grow 8 to 14 times by 2050, mainly driven by its use in EV batteries, which will account for about 80% of total lithium demand by 2050. Lastly, nickel demand is projected to increase two to three times by 2050, with most of this growth linked to lithium-ion batteries in EVs.”

Despite the challenges, governments around the world are incentivizing EV production due to the environmental impacts. For example, the U.S. Department of Energy (DOE) said on July 11 that the Biden administration, through the DOE, announced $1.7 billion in grants aimed at converting 11 at-risk auto manufacturing facilities across eight states to produce electric vehicles (EVs) and their components.

This move is part of President Biden’s broader “Investing in America” initiative, which seeks to revive manufacturing communities and protect union jobs. The grants are designed to keep the U.S. auto industry competitive, especially as global rivals invest heavily in EVs. The program, funded by the Inflation Reduction Act, will help retain over 15,000 union jobs and create nearly 3,000 new positions across the selected facilities. These facilities will manufacture a wide range of EV-related products, from parts for electric motorcycles to batteries for heavy-duty trucks.

With that, we look at the 8 Best EV Stocks to Buy According to Short Sellers.

8 Best EV Stocks to Buy According to Short Sellers

8 Best EV Stocks to Buy According to Short Sellers

Our Methodology

For this article, we used stock screeners and ETFs to identify companies involved in EV manufacturing and sales. We then selected 8 stocks with the smallest short interest and listed them in descending order of their short interest. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s database of over 900 elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

8 Best EV Stocks to Buy According to Short Sellers

8. Gogoro Inc. (NASDAQ:GGR)

Short Interest as % of Shares Outstanding: 1.02%

Number of Hedge Fund Holders: 11

One of the best EV stocks, Gogoro Inc. (NASDAQ:GGR) is a Taiwan-based company known for its urban transportation with its innovative battery-swapping technology for electric two-wheel vehicles. The company focuses on electric scooters, mopeds, and motorcycles.

The company initially gained attention with the launch of the Gogoro Smartscooter at the Consumer Electronics Show 2015, which showed its commitment to sustainable and efficient urban mobility solutions. Since then, Gogoro (NASDAQ:GGR) has expanded its offerings and strategic partnerships globally, including collaborations with major vehicle makers like Hero and Yamaha.

The company has created a unique ecosystem centered around its Smart Battery and Gogoro Network. The network allows users to quickly exchange depleted batteries for fully charged ones at various GoStations, which minimizes downtime and makes travel more convenient.

The company also operates a rideshare service, GoShare, in Taiwan and Japan, and has introduced its battery-swapping technology in multiple international markets, such as Singapore, India, and Israel. With ongoing expansions and significant investments, the company continues to drive the future of electric mobility.

At the company’s Q2 earnings call, Gogoro’s (NASDAQ:GGR) management highlighted several growth prospects. The company secured significant investments totaling $100 million, including a $50 million equity investment from Gold Sino Assets Limited and a $50 million commitment from Castrol. This capital infusion is expected to significantly help it accelerate its international expansion and advance its battery-swapping ecosystem.

Moreover, the company ended the quarter with a strong cash position of $197 million, which provides a solid foundation for future expansion and innovation.

In the second quarter, 11 hedge funds had stakes worth over $14 million in Gogoro (NASDAQ:GGR).

7. Stellantis N.V. (NYSE:STLA)

Short Interest as % of Shares Outstanding: 0.86%

Number of Hedge Fund Holders: 31

Stellantis N.V. (NYSE:STLA) is a Dutch automotive company created by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group. As one of the world’s largest automakers by sales, the company has a diverse portfolio of vehicle brands, including Jeep, Peugeot, Chrysler, Dodge, and Maserati. The company operates globally, with footprints in over 130 countries.

Stellantis (NYSE:STLA) is advancing its electrification efforts under the Dare Forward 2030 plan. According to the plan, the company will commit over €50 billion to develop a diverse range of battery electric vehicles and hybrid models. It aims to achieve a 100% BEV sales mix in Europe and a 50% BEV mix in the U.S. by 2030. It has a goal of offering over 75 BEV models and reaching 5 million annual global sales.

The company is developing four BEV-native platforms and three Electric Drive Modules (EDMs) to cater to various vehicle types, from city cars to pickup trucks. The platforms are designed for efficiency and scalability. The company is also exploring advanced battery technologies and hybrid propulsion options. It is our 7th best EV stock to buy according to short sellers.

While Stellantis (NYSE:STLA) is facing some headwinds such as a lawsuit regarding emissions and operational hurdles, especially in North America and Europe, the company is trading near its 52-week lows as of September 2. This could provide a significant entry point for investors.

Analysts see long-term growth for the stock as 26 analysts have an average price target of $22.33, which represents an upside of over 33% from the current levels on September 2.

In the second quarter, 31 hedge funds had stakes in Stellantis (NYSE:STLA), worth nearly $300 million. Two Sigma Advisors increased its stake in the company by 143% with over 2.7 million shares worth $54.744 million, and is the largest shareholder of the company, as of June 30.

Ariel Investments mentioned Stellantis (NYSE:STLA) in its Q2 2024 investor letter stating that the company faced challenges from high U.S. interest rates and inventory levels but is expected to maintain strong profitability and positive free cash flow, which is supported by its global presence and strategic focus. Here is what the firm said:

“Finally, multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA), fell in the quarter as higher interest rates in the U.S. and tapering demand for high-volume combustion engine models resulted in elevated U.S. inventory levels. Nonetheless, pricing outperformed expectations and management reiterated full-year guidance of double-digit adjusted operating profit margin and positive free cash flow. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and unwavering dedication to leading the industry in profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”

6. LiveWire Group, Inc. (NYSE:LVWR)

Short Interest as % of Shares Outstanding: 0.32%

Number of Hedge Fund Holders: 8

LiveWire Group, Inc. (NYSE:LVWR) creates and markets electric motorcycles, along with related parts, accessories, and apparel, as well as electric balance bikes for children. It is carving out a niche in the electric motorcycle industry with a strong focus on innovation and market expansion.

As a company that evolved from Harley-Davidson’s electric vehicle division, it has advanced its expertise in electric motorcycles and related products. The company operates through two primary segments, Electric Motorcycles and STACYC. It caters to a range of customers from wholesalers to individual consumers through various channels, including online sales.

The flagship model, the LiveWire ONE, marks a significant step for the company as it features a 15.5 kWh battery that provides a range of approximately 104 miles on a full charge. This model, originally launched under Harley-Davidson’s electric initiative, showcases LiveWire’s (NYSE:LVWR) commitment to performance and range in electric motorcycles.

Building on this foundation, the LiveWire S2 Del Mar was introduced in February 2022. The model is designed to be more affordable and lighter. It utilizes the company’s versatile ARROW platform to appeal to a broader market segment.

The company recently expanded its lineup with the LiveWire S2 Mulholland, launched in March 2024. While details are still emerging, this new model shows the company’s strategy to diversify its product offerings and address various consumer preferences within the electric motorcycle market.

In the second quarter, 8 hedge funds had stakes in LiveWire (NYSE:LVWR), with total positions worth $551,000. It ranks 6th on our list of the best EV stocks to buy according to short sellers.

Furthermore, LiveWire (NYSE:LVWR) is progressing financially as well. In the second quarter, the company reported revenues of $6.44 million and a GAAP EPS of -$0.12. Revenue from electric motorcycles increased by $1.7 million compared to the previous year, which reflects higher unit sales.

It achieved 158 unit sales in the quarter, which marks a 35% increase from the first quarter of 2024 and significant growth compared to the same period last year. The performance has reinforced the company’s position as the leading on-road electric motorcycle retailer in the U.S. for the first half of 2024.

CEO Karim Donnez highlighted that the company has made substantial gains in existing markets and continues to focus on reducing operating losses while investing in product development. With a 12% improvement in consolidated operating loss compared to the previous year, the company remains committed to expanding its product portfolio and advancing its Electric Motorcycles and STACYC segments.

5. ZEEKR Intelligent Technology Holding Limited (NYSE:ZK)

Short Interest as % of Shares Outstanding: 0.29%

Number of Hedge Fund Holders: 11

ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) is a new but significant player in the electric vehicle sector, launched by the Chinese Geely Automobile Holdings in March 2021. The company focuses on premium electric vehicles, and its first vehicle, the Zeekr 001, was launched in April 2021.

After a successful launch in China and an IPO on the New York Stock Exchange in May 2024, ZEEKR (NYSE:ZK) is expanding internationally. The company is entering European markets and planning further expansion into regions like Australia, South Korea, and Brazil. It has also partnered with technology leaders such as Waymo and Mobileye to incorporate autonomous driving features into its vehicles.

On August 30, ZEEKR (NYSE:ZK) officially launched its mid-to-large SUV, the ZEEKR 7X, bringing its portfolio to 7 EV models. As of August 2024, the company has delivered 121,540 year-to-date, up 81% year-over-year. In August 2024, the company delivered over 18,000 vehicles, up 46% from the same month in 2023.

On August 22, TipRanks reported that Citi analyst Jeff Chung has reaffirmed a Buy rating on ZEEKR’s (NYSE:ZK) stock and mentioned several positive factors for the company. The analyst pointed out the company’s stable sales target of 230,000 units for FY24 as a sign of confidence despite export challenges, especially in Europe. He expects improved gross profit margins in the latter half of the year due to a better sales mix, lower battery costs, and greater efficiency.

Chung also mentioned the company’s new models are expected to drive significant growth. Additionally, the company’s goal of achieving a 15% vehicle gross profit margin for FY24 is supported by strong demand for the Zeekr 009 and the benefits of its Sustainable Experience Architecture platform.

As of the second quarter, 11 hedge funds had stakes worth $59.16 million in ZEEKR (NYSE:ZK). It ranks at 5 on our list of best EV stocks to buy according to short sellers.

4. VinFast Auto Ltd. (NASDAQ:VFS)

Short Interest as % of Shares Outstanding: 0.19%

Number of Hedge Fund Holders: 8

VinFast Auto Ltd. (NASDAQ:VFS) is engaged in designing and producing EVs, e-scooters, and e-buses across Vietnam, Canada, and the U.S. The company operates through three segments, Automobiles, E-scooters, and Spare Parts & Aftermarket Services.

The Automobiles segment handles the design, development, manufacturing, and sale of cars and electric buses, and provides battery leasing and charging solutions for these vehicles. The E-scooter segment focuses on the design, development, manufacturing, and sales of e-scooters, including battery leasing and charging services for the scooters.

The Spare Parts & Aftermarket Services segment is involved in selling spare parts and offering support services for both automobiles and e-scooters. As a subsidiary of Vingroup JSC, one of Vietnam’s major conglomerates, the company is dedicated to expanding the accessibility of electric vehicles to a broader audience.

In Q2, 8 hedge funds had investments in VinFast (NASDAQ:VFS), with positions worth $342,000.

VinFast (NASDAQ:VFS) is making significant strides in expanding its presence and operations on a global scale. The company is aggressively growing its showroom network and increasing its international deliveries. In Indonesia, the company has quickly made its mark by signing agreements with five dealership partners and opening its first store in April.

By late summer, the company had further shown its expansion with the launch of 15 additional dealer stores within a month. It introduced two new electric vehicle models, the VF 5 and VF e34 in the country.

In addition to its progress in Indonesia, the company is also expanding into other key markets. In Thailand, the company has signed a letter of intent with 15 initial dealers. Meanwhile, in the Middle East, it has secured a dealer sales agreement for the Oman market and established an exclusive dealership partnership with Al Mana Holding W.L.L. for Qatar. The first showroom in Doha is set to open in the third quarter of 2024, where customers will be able to explore four VinFast e-SUV models, the VF 6, VF 7, VF 8, and VF 9.

VinFast’s (NASDAQ:VFS) ambitions in the U.S. are equally bold. The company plans to set up 125 sales points, and currently, it operates 18 dealerships across seven states, with further expansions on the horizon. Additionally, it is exploring the development of a second manufacturing facility in India, complementing its first plant expected to launch in the first half of 2025.

The company has shown growth financially as well. In Q2, the company delivered over 12,000 vehicles, marking a 24% increase from the previous quarter and a 26% rise from the same period last year. For the first half of 2024, deliveries reached 21,747 vehicles, representing an impressive 92% increase compared to the prior year. The company is targeting approximately 80,000 electric vehicle deliveries for 2024, more than double the 34,855 vehicles delivered in 2023.

3. Honda Motor Co., Ltd. (NYSE:HMC)

Short Interest as % of Shares Outstanding: 0.13%

Number of Hedge Fund Holders: 12

Honda Motor Co., Ltd. (NYSE:HMC) is making impressive strides in its transition toward a more sustainable future, with a significant focus on electric and hybrid vehicles. The company’s dedication to electrification is evident in its expanding lineup of EVs and hybrid models. The Honda e, introduced in 2020, marks the company’s entry into the compact EV market, which caters to urban drivers with its efficient design.

Building on this momentum, the company released the e:N1, an electric SUV produced in Thailand starting in 2023. The e:N1 features a 68.8 kWh battery and delivers a power output of 201 horsepower. It aims to provide a substantial driving range and performance.

The company’s hybrid initiatives continue to advance with models like the Honda CR-V PHEV, which will be available in 2025. This plug-in hybrid offers an all-electric range of up to 50 miles and can be fully charged in under 2.5 hours, which reflects the company’s ongoing commitment to reducing emissions while providing practical solutions for drivers.

It is also preparing to launch the Honda N-VAN e: in 2024, a mini-electric vehicle tailored for both commercial and personal use in Japan, which addresses the growing demand for smaller, versatile electric options.

A major development for Honda (NYSE:HMC) is the introduction of the Honda 0 Series, set to debut globally in 2026, starting with the North American market. This series will showcase its innovative approach to electric vehicle design, focusing on the principles of “Thin, Light, and Wise.” The 0 Series will feature two key models: the Saloon, designed for improved aerodynamics and driving dynamics, and the Space-Hub, which offers a spacious interior with a unique face-to-face seating arrangement.

The company has set ambitious targets for its electric and fuel-cell vehicle sales. The company aims for EVs and FCEVs to make up 40% of its global sales by 2030, with an ultimate goal of achieving 100% zero-emission vehicle sales by 2040.

To support these goals, it plans to ramp up production to 2 million electric vehicles annually by 2030. In addition, the company is expanding its hybrid vehicle range, which will continue to play a crucial role during the transition period.

Honda (NYSE:HMC) is also investing heavily in its EV infrastructure. It has announced plans for an approximately USD$11 billion investment in Canada to build a comprehensive EV value chain, strengthening its supply system to meet future demand in North America. Furthermore, it is developing its own battery technologies, including solid-state batteries, which could further improve the performance and safety of its electric vehicles.

For the first quarter, the company reported a GAAP EPS of ¥81.81 (1 Yen = US$ 0.0068, as of September 2). It reported revenues of ¥5.4 trillion, a 16.9% increase year-over-year. Operating profit also saw a significant rise, increasing by ¥90.2 billion to reach ¥484.7 billion, compared to the same period last year.

The company’s aggressive push into electric and hybrid vehicles, coupled with its investments in infrastructure and technology, position it well for future growth. Its balanced approach between immediate hybrid solutions and long-term electric ambitions aligns with global trends toward sustainability and could drive significant value for investors. It is among our best EV stocks to buy according to short sellers.

In the second quarter, 12 hedge funds held positions in Honda (NYSE:HMC), worth $398.704 million. As of June 30, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $326.202 million.

2. Toyota Motor Corporation (NYSE:TM)

Short Interest as % of Shares Outstanding: 0.05%

Number of Hedge Fund Holders: 14

One of the best EV stocks, Toyota Motor Corporation (NYSE:TM) is navigating the shift toward electrification with a well-rounded approach that embraces both its legacy and the future of automotive technology. The company has introduced a new range of combustion engines that are designed to operate on both gasoline and alternative fuels. This helps the company maintain its expertise in internal combustion while preparing for a more sustainable future.

The company’s long-standing experience with hybrids continues to play a significant role in its product lineup. It has been a leader in hybrid technology for years, and this expertise remains valuable as it offers a bridge between traditional internal combustion engines and fully electric vehicles. The growth of its hybrid business reflects a steady demand for vehicles that provide the benefits of electric driving while retaining the convenience of conventional fuel.

Toyota (NYSE:TM) is also advancing its EV strategy with the launch of its bZ (Beyond Zero) series. The bZ4X, the first model from this series, is a compact SUV that combines practicality with advanced technology and a spacious interior.

Toyota (NYSE:TM) was part of 14 hedge funds’ portfolios in the second quarter with a total stake value of $1.42 billion. Fisher Asset Management is the biggest shareholder in the company and has a position worth $1.35 billion as of Q2.

The bZ4X model represents the company’s initial push into the expanding EV market, and it is just the beginning of a broader plan. The company has committed to introducing 30 electric models by 2030 and aims to achieve annual sales of 3.5 million electric vehicles. To support this ambitious goal, it is investing $70 billion in electrification.

Beyond battery electric vehicles, the company is also focusing on hybrid technology and hydrogen fuel cell vehicles. The company’s hybrid models, which combine battery power with gasoline engines, are particularly important in regions where charging infrastructure is still developing. Its hydrogen fuel cell vehicle, the Mirai, is evidence of its dedication to exploring alternative energy solutions.

In a recent development, the company and BMW are expanding their collaboration, with Toyota (NYSE:TM) supplying key components like hydrogen tanks and fuel cell systems. This partnership will help advance BMW’s efforts in integrating these components into their electric vehicle technology, showcasing Toyota’s (NYSE:TM) role in driving innovation across the industry.

The company’s hybrid strategy has also proven successful in the market. It plans to offer hybrid versions of all its models in the U.S., and this approach has already shown positive results. In the first half of the year, Toyota and Lexus experienced a nearly 15% increase in North American sales. Additionally, sales of the hybrid Camry surged by almost 143% year-over-year, outpacing the overall growth in Camry sales.

1. Lotus Technology Inc. (NASDAQ:LOT)

Short Interest as % of Shares Outstanding: 0.04%

Number of Hedge Fund Holders: 11

Lotus Technology Inc. (NASDAQ:LOT) specializes in designing, developing, and selling battery electric lifestyle vehicles on a global scale. Additionally, the company distributes sports cars, all under the Lotus brand. It is making significant strides in the EV market with its innovative approach to battery-electric lifestyle vehicles.

As a division of the renowned British Lotus Group, it is known for its high-performance sports cars under Lotus Cars. Since its merger with L Catterton Asia Acquisition Corp (LCAA) and subsequent Nasdaq listing in late February 2024, it has been working constantly to use its rich heritage in performance and innovation to meet consumer needs.

The company has introduced several models that highlight its commitment to sustainable and advanced electric mobility. The Lotus Evija, launched in 2019, is the brand’s inaugural all-electric hypercar, featuring a 70 kWh battery pack developed in collaboration with Williams Advanced Engineering. The Evija represents a major step in the company’s transition to electric vehicles, showcasing impressive power and performance.

Additionally, the Lotus Eletre, introduced in March 2023, signified the company’s entry into the electric SUV market. It is equipped with a 112 kWh battery pack and an 800V high-voltage system, offering a range of up to 600 kilometers.

Another significant addition is the Lotus Emeya, a luxury electric hyper-GT unveiled in September 2023. With its high-power dual motors, the Emeya can accelerate from 0 to 100 km/h in just 2.8 seconds, positioning it as a formidable contender in the luxury electric vehicle segment.

In the second quarter, Lotus Technology (NASDAQ:LOT) delivered 2,679 vehicles, which marks a substantial 128% increase compared to the previous year. The growth was reflected in the company’s revenue, which reached $225 million, up 103% year-over-year.

The gross margin for the second quarter also improved to 9%, compared to 5% in the same period the previous year. Over the first half of 2024, the company saw nearly 4,900 vehicles delivered, a remarkable 239% increase from the previous year, with significant contributions from the US market, which accounted for 26% of total deliveries.

In response to shifting market conditions and new tariff policies in the US and EU, Lotus Technology (NASDAQ:LOT) has adjusted its delivery target for 2024 to 12,000 units. The company has launched the “Win26” plan, which aims to achieve positive EBITDA by 2026 through optimized internal processes, cost management, and recalibrated product plans designed to meet diverse global market demands.

According to our database, 11 hedge funds held stakes in Lotus Technology (NASDAQ:LOT) in the second quarter, with positions worth $650,000. It tops our list of the best EV stocks to buy according to short sellers.

While we acknowledge the potential of Lotus Technology Inc. (NASDAQ:LOT) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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