3 Best Performing Electric Vehicle Stocks in September

: LCID | Lucid Group Inc. News, Ratings, and Charts

LCID – Growing concerns over climate change have compelled the Biden administration to act and set ambitious targets to grow the electric vehicle (EV) market. The industry’s solid growth prospects and fundamental strength have helped EV stocks Lucid Group (LCID), Arrival (ARVL), and Lordstown Motors (RIDE) deliver above-average returns last month. Therefore, it could be wise to add these stocks to your watchlist.

Addressing the climate change crisis has become a matter of utmost importance worldwide, compelling governments to focus on expanding the electric vehicles (EVs) market to reduce carbon emissions. The Biden-Harris administration had set up an ambitious target of half of the cars sold to be EVs by 2030.

Recently, governors of five Midwest states, namely Illinois, Indiana, Michigan, Minnesota, and Wisconsin, announced the formation of the Regional Electric Vehicle Midwest Coalition (REV Midwest) to deploy EV stations in the region following the bipartisan bill, allocating $7.5 billion for EV charging stations.

EV stocks Lucid Group, Inc. (LCID), Arrival (ARVL), and Lordstown Motors Corp. (RIDE) delivered an impressive performance last month and are expected to keep performing well in the upcoming months.

Lucid Group, Inc. (LCID)

LCID is an EV designing, and building company focused on building EV powertrains and battery systems. The company went public in a merger with Churchill Capital Corp IV on July 26, 2021. The transaction brought in $4.4 billion, which should accelerate the growth and manufacturing capacity of LCID.

On September 28, LCID started its Production Preview Week showcasing its productions in two facilities for investors and media persons, including its first customer-quality Lucid Air luxury electric sedans. The facilities are expected to bring in economic output of $9 billion in 2024. LCID also expects Lucid Air Dream Edition models to begin deliveries to reservation holders in late October and customer deliveries following that. This marks significant progress in the company’s aim to expand the accessibility of more sustainable transportation.

For the six months ended June 30, LCID’s net cash provided by financing activities increased 771.6% year-over-year to $1.50 million, while cash at the end of the period rose 481.1% from the same period last year to $1 million.

Analysts expect its EPS for the next year (fiscal 2022) to increase 35.2% year-over-year, while the consensus revenue estimate of $1.74 billion for the next year indicates a 2,179.1% year-over-year rise.

The stock has gained 25.8% over the past month to close Friday’s trading session at $24.61.

Arrival (ARVL)

ARVL provides zero-emission mobility solutions. The company is engaged in the design and sale of commercial EVs and buses globally. It is headquartered in Howald, Luxembourg. The company went public in a reverse merger with CIIG Merger Corp. on March 25, 2021. The merger generated $660 million in gross proceeds, which the company expects to use to accelerate EV deliveries and expand micro-factories.

On August 5, ARVL collaborated with Microsoft Corporation (MSFT) for developing fleet data using Microsoft Azure functions of telemetry and fleet data management. The resulting cloud platform is expected to provide data insights to aid the development of advanced business models in the mobility space. The platform can also be used to share data with other partners.

In July, multinational Car-as-a-Service company LeasePlan became the official leasing partner of ARVL with an initial order of 300 vans. About this partnership, Avinash Rugoobur, President, ARVL, said, “This shows Arrival’s method is truly game-changing and can roll out in multiple locations rapidly. With this new partnership, Arrival will be able to deepen and expand our presence globally, working with LeasePlan to bring the best possible products to its customers and in turn helping them to achieve their own sustainability goals.”

In the second fiscal quarter ended June 30, ARVL’s net finance income came in at €9.28 million ($10.75 million), up substantially from its negative year-ago value. Net cash from financing activities increased 8,912.8% year-over-year to €586.55 million ($679.99 million) while cash and cash equivalents at June 30 stood at €445.04 million ($515.95 million), up 1,389.5% year-over-year.

The street expects the company’s EPS for the next year (fiscal 2022) to increase 82.2% from the current year.

ARVL’s stock has gained 5.9% over the past month and marginally intra-day to close Friday’s trading session at $13.38.

Lordstown Motors Corp. (RIDE)

RIDE is an automotive company that caters to fleet customers for developing and manufacturing light-duty electric trucks. The company is focused on developing its flagship vehicle called the Endurance, a full-size pickup truck.

On September 30, RIDE agreed in principle with global technology company Hon Hai Technology Group (“Foxconn”) to work jointly in scalable EV programs in RIDE’s Lordstown, Ohio foot production and assembly plant. The partnership should enable RIDE to leverage Foxconn’s manufacturing expertise and cost-efficient supply chain to improve its services offerings further and develop new models.

For the six months ended June 30, the company’s cash and cash equivalent balance came in at $365.90 million, up 62,447% from the same period last year. Loss per share attributable to common shareholders stood at $0.61 in the second fiscal quarter ended June 30.

The consensus revenue estimate of $1.11 billion for the next year (fiscal 2022) indicates a 1,815.1% year-over-year improvement. Analysts expect its EPS to increase 26.4% year-over-year in the upcoming year.

The stock has gained 4.5% over the past month to close Friday’s trading session at $6.53.

 


LCID shares were trading at $24.06 per share on Monday afternoon, down $0.55 (-2.23%). Year-to-date, LCID has gained 140.36%, versus a 15.45% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


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