2 Electric Vehicle Stocks Trading Down More Than 30% in 2021

: GOEV | Canoo Inc. News, Ratings, and Charts

GOEV – The growth potential of the electric vehicle (EV) industry—backed by government support—has caused it to become overcrowded and one of the most overvalued industries worldwide. With a global semiconductor shortage now limiting the industry’s growth potential in the near term, we think it’s best to avoid overvalued EV stocks Canoo (GOEV) and Lordstown Motors (RIDE). Read on.

The electric vehicle (EV) market’s asset bubble concerns are intensifying in 2021 because several companies have yet to deliver on their promises despite receiving increased tax credits and having access to highly innovative software. Many companies that previously scheduled their EV product launches this year have been forced to push back their launch dates due to a worldwide semiconductor chip shortage. Also, several start-ups with diversified product pipelines are struggling to boost their revenues, given the intense competition in the global EV industry.

President Biden has announced a $174 billion plan for the EV industry that will  subsidize domestic supply chains, install 500,000 charging stations nationwide by 2030, and increase tax incentives and point-of-sale rebates. The plan  has spurred several start-up EV manufacturers to go public, making the EV space highly overcrowded amid a raw material shortage.

Thus, we believe it is better to avoid low-potential EV stocks Canoo Inc. (GOEV) and Lordstown Motors Corp. (RIDE) now, given their poor performances over the past quarters.

Click here to checkout our Electric Vehicle Industry Report for 2021

Canoo Inc. (GOEV)

Founded in 2017, GOEV is an automobile manufacturing company that  designs and develops electric vehicles in the United States. The company offers B2B delivery vehicles, multi-purpose delivery vehicles, and lifestyle vehicles using skateboard architecture technology. It intends to serve small businesses, independent contractors, service technicians, retailers, corporations, logistics companies, fleet managers, and others. The stock has lost 34.9% year-to-date and closed Thursday’s trading session at $8.99.

For its alleged violations of the federal securities laws, a class action lawsuit has been filed against GOEV and its directors by several law firms on behalf of persons and entities who purchased or acquired GOEV common stock and/or warrants August 18, 2020 – March 29, 2021. GOEV debuted its fully electric pickup truck on March 10, 2021 during the Motor Press Guild’s Virtual Media Day (VMD), in partnership with Automobility LA, with deliveries scheduled for as early as 2023.

GOEV’s loss from operations was  $127.66 million for the fourth quarter, ended December 31, 2020, which represents more than a 242% rise from the prior-year period. The company’s research and development expenses increased 214.9% year-over-year to $90 million. GOEV’s total liabilities have increased 41.9% year-over-year to $181.62 million. Its net loss for the fourth quarter was $12.30 million. Also, GOEV’s net loss per share came in at $0.08.

Analysts expect the company’s EPS to decline by 12.3% year-over-year and remain negative for the fiscal 2021.

GOEV’s POWR Ratings are consistent with this bleak outlook. The stock has an overall F rating, which equates to Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

The stock has an F grade for Growth, and D for Value, Quality, and Stability. We have also graded GOEV for Growth and Momentum. Click here to access all GOEV’s ratings.

GOEV is ranked #44 of 51 stocks in the Auto & Vehicle Manufacturers industry.

Lordstown Motors Corp. (RIDE)

Headquartered in Lordstown, Ohio, RIDE is an automotive company that designs and manufactures EVs. The company’s electric pickup truck, the Lordstown Endurance, is targeted for sale in  the commercial fleet markets. Its In-Wheel Drive System utilizes four hub motors with integrated software. RIDE’s Telematics system provides owners with a range of data for fleet management. The stock has lost 39.9% year-to-date and 40.2% over the past  month to close Thursday’s trading session at $12.05.

On behalf of shareholders who purchased RIDE’s shares between August 3, 2020 – March 24, 2021, Block & Leviton LLP, a national securities litigation firm, has filed a class action lawsuit against RIDE and certain of its executives for securities fraud.

In March, RIDE entered an agreement with Holman Enterprises, a global automotive services organization. A co-marketing agreement and vehicle procurement agreement with Holman’s ARI segment and an upfit services agreement with Holman’s Auto Truck Group should  help organizations integrate the Lordstown Endurance truck into their vocational fleet operations.

For the fourth quarter, ended December 31, 2021, RIDE’s loss from operations was  $38.55 million, which represented a rise of 441.3% year-over-year. The company’s total liabilities have increased 40.4% year-over-year to $35.09 as of December 31, 2021. Its net loss was  $38.24 million for the fourth quarter, up 436.8% year-over-year. RIDE’s net loss per share was $0.23, which represents a rise of 130% from the prior-year period.

Analysts expect the company’s EPS to decline by 62.5% year-over-year and remain negative for the fiscal 2021.

It’s no surprise that RIDE has an overall F rating, which equates to Strong Sell in our proprietary rating system. The stock also has an F grade for Growth and Sentiment, and a D grade for Value, Quality, and Stability. In addition to the POWR Ratings grades we’ve just highlighted, one can see RIDE’s ratings for Momentum here.

RIDE is ranked #48 in the same industry.

Click here to checkout our Electric Vehicle Industry Report for 2021

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

How to Ride the NEW Stock Bubble?

5 WINNING Stocks Chart Patterns

Unlock the POWR in Your Portfolio!

 


GOEV shares were trading at $8.42 per share on Monday afternoon, down $0.57 (-6.34%). Year-to-date, GOEV has declined -38.99%, versus a 9.00% rise in the benchmark S&P 500 index during the same period.


About the Author: Sweta Vijayan


Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
GOEVGet RatingGet RatingGet Rating
RIDEGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bull Run or Bull S#*t?

The S&P 500 (SPY) has impressively broken out above 4,000. However, it seems that ONLY large caps are moving higher while smaller stocks are actually in the red. Why is this? And what does it mean for the future health of this bull market? Read on below for the answers…

:  |  News, Ratings, and Charts

3 Shipping Stocks Rated Strong Buy

Shipping stocks are buoyant as the global economy begins its rebound from the economic effects of the COVID-19 pandemic. We think ZIM Integrated Shipping Services (ZIM), Matson (MATX) and Global Ship Lease (GSL) are three companies that are well positioned to benefit from a sector resurgence and, as such, warrant a closer look now by investors. Let’s evaluate these names more closely.

:  |  News, Ratings, and Charts

Top 10 Growth Stocks

Let me prove beyond a shadow of a doubt that we are in the midst of a stock market bubble. Even better, let me explain why stocks (SPY) will rise for another 12-24 months so you can ride it higher and then parachute out at the peak. And just for good measure I will share my top 10 stocks for today’s market. Read on below for more...

:  |  News, Ratings, and Charts

Avoid These 3 Cathie Wood Stocks in April

Cathie Wood’s contrarian investment strategy may not be ideal for short-term, risk-averse investors with limited funds because most of Wood’s bets require a considerable holding period. So, we think Wood favorites Shopify (SHOP), Spotify (SPOT), and Zillow (Z), which could witness a pullback in the near term, are best avoided now.

:  |  News, Ratings, and Charts

Top 10 Growth Stocks

Let me prove beyond a shadow of a doubt that we are in the midst of a stock market bubble. Even better, let me explain why stocks (SPY) will rise for another 12-24 months so you can ride it higher and then parachute out at the peak. And just for good measure I will share my top 10 stocks for today’s market. Read on below for more...

Read More Stories

More Canoo Inc. (GOEV) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All GOEV News