Electric vehicles (EVs) have seen strong sales growth in the past two years, driven by strong consumer demand amid rising gas prices and increased concerns surrounding climate change. Consumers are showing an increasing interest in EVs because they are environment-friendly, energy-independent, and cost-saving. The current geopolitical crisis caused by Russia’s invasion of Ukraine pushed crude oil prices to record highs earlier this month, exacerbated by a ban on Russian fossil fuel imports, by the United States and its allies. Amid volatile gas prices, consumers are making a switch to EVs.

Government policies and incentives are supporting the EV market to help meet climate change goals. The government has increased its funding for  developing charging infrastructure, purchasing subsidies, and incentives to achieve sustainability goals. The federal government is also providing a substantial tax credit for purchasing an all-electric or plug-in hybrid vehicle. These factors are contributing to the growth of the electric vehicle (EV) market.

Given the backdrop, Wall Street analysts expect quality EV stocks Electric Last Mile Solutions, Inc. (ELMS) and Volcon, Inc. (VLCN) to gain momentum in the coming months.

Click here to checkout our Electric Vehicle Industry Report for 2022

Electric Last Mile Solutions, Inc. (ELMS)

ELMS is a commercial electric vehicle solutions company. The Auburn Hills, Mich., company focuses on designing, engineering, manufacturing, and customizing electric last-mile delivery and utility vehicles. ELMS’ vehicles include Urban Delivery and Urban Utility. The company offers Class 1 commercial electric vehicles and Class 3 Urban Utility electric vehicles in the U.S market.

Last December, ELMS received an order for its ELMS Urban Delivery from Glovis America, Inc., a global supply chain and logistics provider. Glovis plans to use ELMS commercial vehicles to support its industrial operations. This is expected to boost ELMS’ revenue streams.

On Dec. 8, 2021, ELMS partnered with Nauto, a leading provider of AI-based vehicle safety technology for the automotive sector. The companies collaborated to enhance driver safety and enable fleet managers to improve operational efficiency for commercial electric vehicles. The collaboration might extend customer reach and boost the company’s profitability.

For its fiscal year 2021 nine-months, ended Sept. 30, 2021, ELMS’ cash and cash equivalents grew 468% over year-ago period to $143.15 million. The company’s total current assets increased 642.4% for the nine-month period ended Sept. 30, 2021, to $187.12 million.

ELMS has gained 13.2% in price over the last five days and closed yesterday’s trading session at $1.54.

Each of the seven Wall Street analysts that rated ELMS rated it Hold. The 12-month median price target of $3.88 indicates a 152% potential upside. The price targets range from a low of $2.50 to a high of $6.00.

Volcon, Inc. (VLCN)

VLCN is an electric powersports vehicle company. The Round Rock, Tex., company develops, manufactures, and sells electric off-road power sport vehicles in the U.S. VLCN offers electric two- and four-wheel motorcycles and utility terrain vehicles through its dealers. Its motorcycles and UTVs are designed for family off-road adventures, work on the farm, or transport around private land. VLCN exports its vehicles and related accessories to Latin America, Canada, Africa, Europe, Southeast Asia, and Australia.

In January, VLCN announced the commencement of customer product deliveries to Latin America. “Since the beginning we’ve said that Volcon off-road products are a great fit for the terrain and recreational needs of Central and South America. It’s with great pride that we make these first customer shipments to Latin America, as they are a proof point that we’re moving into the next phase of our international expansion plans,” said Jordan Davis, CEO of VLCN.

For its fiscal year 2021, ended Dec. 31, 2021, VLCN’s cash and cash equivalents grew 939.4% year-over-year to $5.57 million. The company’s total current assets increased 1,603.2% year-over-year to $10.88 million, for the year ended December 31, 2021.

Analysts expect VLCN’s revenue for the fiscal year 2022 ending Dec. 31,  2022, to come in at $3.25 million, representing a 623.8% rise year-over-year.

The stock improved 5.8% in price over the past month and closed yesterday’s trading session at $2.00.

The sole Wall Street analyst that has rated VLCN rated it Buy. The 12-month median price target of $6.00 indicates a 200% potential upside.

Click here to checkout our Electric Vehicle Industry Report for 2022

What To Do Next?

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What gives these stocks the right stuff to become big winners?

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ELMS shares were trading at $1.43 per share on Thursday afternoon, down $0.11 (-7.14%). Year-to-date, ELMS has declined -79.66%, versus a -3.68% rise in the benchmark S&P 500 index during the same period.

About the Author: Mangeet Kaur Bouns

Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...

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