2021 is shaping up to be a pivotal year for the electric vehicle industry, given the global push for a green energy ecosystem, rising sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), and an increased demand for EVs due to government incentives. According to IHS Markit, the global EV sales is expected to…
rise by approximately 70% this year.
Indeed, President Joe Biden’s plans to replace federal government’s fleet of cars and trucks with zero-emission electric vehicles manufactured in the United States should unleash an avalanche of new EV demand in the EV market. Because the EV boom is just getting started, Wall Street analysts expect high growth from some prominent EV stocks.
The continuing fundamental shift from traditional, internal combustion engines to electric engines has caused Wall Street analysts to upgrade the ratings of prominent EV players Tesla, Inc. (TSLA – Get Rating), Fisker Inc. (FSR – Get Rating), and Nikola Corporation (NKLA – Get Rating). Their compelling product portfolios and unique and expansive distribution networks should help the stocks witness solid gains in the near term.
Click here to checkout our Electric Vehicle Industry Report for 2021
Tesla, Inc. (TSLA – Get Rating)
Headquartered in Palo Alto, California, TSLA is the world’s best-selling plug-in and battery electric vehicle car manufacturer. The company operates internationally, through two segments – Automotive and Energy Generation, and Storage.
Last year, TSLA ramped up its Model 3 production in China to more than 5000 cars per week. Furthermore, its Model Y production in Shanghai has begun with deliveries expected to begin shortly. Also, TSLA has ramped up production of its Model Y in Fremont.
This year, TSLA remains on track to begin vehicle production with structural batteries in Berlin and Austin. The company has also boosted its Model S and Model X production and expects to deliver its first Tesla Semi by year’s end.
In the fourth quarter, ended December 31, 2020, TSLA’s total revenues increased 46% year-over-year to $10.74 billion. Its gross profit has risen 49% from the same period last year to $2.07 billion, while its non-GAAP net income grew 134% from the year-ago value to $903 million. Moreover, its adjusted EBITDA increased 57% year-over-year to $1.85 billion over this period.
A consensus EPS estimate of $4.11 for fiscal 2021 represents an 83.5% increase year-over-year. TSLA beat the Street’s EPS estimates in each of the trailing four quarters. The consensus revenue estimate of $48.11 billion for the current year represents a 52.6% increase from the same period last year. The stock has gained 518.8% over the past year.
New Street Research analyst Pierre Ferragu rated the stock a “Buy” last week. Also, his consensus price target of $900 indicates a potential upside of 29.7%.
Fisker Inc. (FSR – Get Rating)
Headquartered in Manhattan Beach, California, FSR is a designer and manufacturer of eco-friendly electric vehicles and advanced mobility solutions. The company is currently developing a mass-market electric vehicle SUV called the Fisker Ocean.
This month, FSR exceeded 14,000 reservations for its…
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