Despite the lingering global semiconductor chip shortage, the electric vehicle (EV) industry has witnessed impressive growth over the past year thanks to multiple government incentives and increasing concerns surrounding climate change. U.S. EV market sales more than doubled to surpass half a million in 2021.

In addition, the recently announced EV Charging Action Plan by the Biden Administration has garnered positive investor sentiment. According to PR Newswire, the global electric vehicle industry is slated to grow at an 18.2% CAGR from 2021 to 2030.

Given this backdrop, Wall Street analysts are betting on cheap EV stocks Canoo Inc. (GOEV - Get Rating) and REE Automotive Ltd. (REE - Get Rating), which are currently trading under $10 per share, to rally more than 140% soon.

Click here to checkout our Electric Vehicle Industry Report for 2022

Canoo Inc. (GOEV - Get Rating)

GOEV in Torrance, Calif., is a mobility technology company that designs, engineers, develops, and manufactures electric vehicles for commercial and consumer markets in the United States. It aims to bring EVs to everyone with bold innovations in design, pioneering technologies, and a unique business model.

On Nov. 15, 2021, Tony Aquila, Chairman and CEO at GOEV, said, “In June we announced Pryor, Oklahoma as the location for our owned manufacturing facility. We have expanded this partnership to include Arkansas and additional locations in Oklahoma. We will now focus on completing the definitive agreements with each state, which will include approximately $100 million in additional non-dilutive financial incentives, making the total approximately $400 million.”

GOEV’s prepaid and other current assets came in at $14.55 million for the period ended Sept. 30, 2021, compared to $6.46 million for the period ended Dec. 31, 2020. Its other assets came in at $28.32 million, compared to $1.25 million for the same period. Also, the company’s total liabilities were $153.08 million, compared to $188.23 million for the same period.

GOEV surpassed its EPS estimates in three of the trailing four quarters. It closed the last trading session at $5.69. Wall Street analysts expect the stock to hit $14 in the near term, which indicates a potential 146.1% upside.

REE Automotive Ltd. (REE - Get Rating)

Headquartered in Herzliya, Israel, REE operates in the e-mobility business. It aims to empower companies to build any size or shape electric or autonomous vehicle–from Class 1 through Class 6.

On Dec. 14, 2021, Hitachi America, Ltd., and REE announced a newly formed strategic agreement to ease and accelerate the adoption of electric vehicles (EV) across the entire EV value chain. REE Co-founder and CEO Daniel Barel said, “This alliance with Hitachi comes at an ideal time for REE as we value their best-in-class innovation and experience in data science and analytics, enabling us to provide a complete solution to our customer.”  

REE’s cash and cash equivalents came in at $294.49 million for the period ended Sept. 30, 2021, compared to $44.71 million for the period ended Dec. 31, 2020. Its total current assets were $306.43 million compared to $47.93 million for the same period. Furthermore, its total assets were $308.35 million, compared to $49.01 million for the same period.

Analysts expect REE’s revenue to grow 3,602.8% year-over-year to $13.33 million in its fiscal year 2022. It closed the last trading session at $2.97. Wall Street analysts expect the stock to hit $14.50 in the near term, which indicates a potential 388.2% upside

Click here to checkout our Electric Vehicle Industry Report for 2022.

GOEV shares fell $0.03 (-0.53%) in premarket trading Tuesday. Year-to-date, GOEV has declined -26.30%, versus a -8.58% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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