Heightened demand for zero-emission cars and government support made 2021 a momentous year for electric vehicles (EVs) despite the negative impact of the semiconductor chip shortage on production. EV sales are expected to exceed 450,000 in 2021. This momentum is expected to continue next year when many more all-electric models will arrive in showrooms.

In addition, improvements in battery technology, lower costs, improving charging infrastructure, and more attractive models from manufacturers are all likely to boost EV sales. Indeed, the global electric vehicle market is expected to increase more than four-fold to $725 billion by 2026. Also, Edmunds analysts expect 15.2 million new cars to be sold in 2022.

Given this backdrop, we think it could be worth adding shares of lesser-known EV manufacturers Arrival (ARVL - Get Rating) and Canoo Inc. (GOEV - Get Rating) to one’s watchlist. Wall Street analysts expect these stocks to more than double in price in 2022.

Click here to checkout our Electric Vehicle Industry Report for 2022

Arrival (ARVL - Get Rating)

Based in Howald, Luxembourg, ARVL provides electric solutions produced by local micro-factories. The company’s portfolio of EVs includes commercial EV vans, buses, and cars. ARVL also offers technology, product, supply chain, automotive, mobility, fintech, and other services.

This month, ARVL partnered with Uber drivers to create ARVL’s first electric car, Arrival, to transform the global ride-hailing industry. With these new electric cars, ARVL should be able to support drivers by developing the best possible product for ride-hailing that elevates the experience for both drivers and passengers.

For the third quarter, ended September 30, 2021, ARVL’s net finance income was €20.39 million ($23.08 million), versus a €1.22 million ($1.38 million) net finance cost. At the end of the period, the company’s cash and cash equivalents increased significantly year-over-year to €380.7 million ($430.85 million). ARVL’s EPS is estimated to grow 64% next year.

Closing the last trading session at $7.91, the $16.50 average analyst price target represents a 108.6% potential upside.

Canoo Inc. (GOEV - Get Rating)

Incorporated in 2017, GOEV in Torrance, Calif., is a technology mobility company that manufactures EVs for the commercial and consumer markets in the United States. The company offers B2B delivery vehicles, multi-purpose delivery vehicles, and lifestyle vehicles using skateboard architecture technology.

This month, GOEV announced that it would accelerate and shift its production of the breakthrough electric vehicles from Europe to the United States. GOEV believes that the initiatives are another step in reducing risk and increasing certainty.

During the third quarter, ended September 30, 2021, GOEV’s cash and cash equivalents came in at $414.9 million. GOEV has surpassed the consensus EPS in three of the trailing four quarters.

The $16.67 consensus price target represents a 117.6% potential gain from the last closing price of $7.66.

Click here to checkout our Electric Vehicle Industry Report for 2022

ARVL shares were trading at $8.02 per share on Thursday morning, up $0.11 (+1.39%). Year-to-date, ARVL has declined -71.48%, versus a 29.67% 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. More...

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