After the meeting, analysts said they would continue to buy these three electric car stocks
Investors are always looking for the next big thing, the next industry that will bring great returns. At best, predicting the stock market will explode is an imprecise science. But just like politics, stocks flow from culture to downstream. Now, culture has integrated into clean energy and electric vehicles. Industry expert Michael Shlisky observes the electric vehicle (EV) stock field of Colliers Securities. Shlisky had the opportunity to meet with the management of many electric vehicle companies at Colliers̵
7; Spring Alternative Transportation Conference last week, which gave him the opportunity to strengthen his view of the industry. In the past six weeks, the inventory of electric vehicles has fallen sharply. However, Shlisky believes that “this may be the best time for investors to test that water prices have fallen too fast and too fast…” The analyst added: “We believe that institutional investors who have been circling the industry may eventually become The best option. It has a brand new look, and the valuation in recent weeks has been much lower.” Although Shlisky believes that current conditions provide investors with opportunities to buy stocks at attractive valuations, he does point out that the electric vehicle industry may In the short term, he continues to face challenges. He recommends that investors in this industry take two years – and continue to pay attention to several EV stocks that investors should consider. We have opened the TipRanks database to obtain the latest detailed information on Shlisky’s three selected stocks; Let’s examine it and find out what caused the analyst’s success or failure. Arcimoto, Inc. (FUV) The first EV stock we are looking for is Arcimoto, an EV manufacturer located in Oregon, which specializes in a production line called Fun Electric Vehicle or FUV. A tricycle that can hold two seats at the same time, with a maximum speed of up to 75 miles per hour and 102 miles per hour on a single charge. It is designed for short-range, casual driving or mid-range regular commuting. Arcimoto is accepting orders for FUV, the vehicle is already in Listed on the West Coast and Florida. In addition to FUV, Arcimoto also sells vehicle variants based on the same chassis and dual-motor front-wheel drive design. The main variants are the Deliverator, a light transport vehicle dedicated to urban landscapes, and the Rapid Responder, which is sold to the fire department and emergency medical services. The main selling point of the quick responder is directly related to the small size and maneuverability of the vehicle-it can reach places that cannot be reached by large emergency trucks, which makes it possible to become the “first person on site”. Arcimoto has launched a motorcycle-style Roadster model for customers to order. In recent months, Arcimoto’s stock price has experienced ups and downs. The company’s stock grew by a staggering 721% in 2020, and then increased by 177%, reaching an all-time high in early February of this year and setting a record high. Since then, the stock has fallen 64%, leading investors to ask: “What’s the use?” The explanation is actually very simple; in the prevailing view on Wall Street, last year, when the electric vehicle industry as a whole performed well, FUV made a significant difference. FUV has gained part of the gains when inflation concerns, rising Treasury yields and the question of how to value stocks during the pandemic are combined. The economic recovery put downward pressure on the market in February and March. Shlisky believes that Arcimoto’s potential-in fact, this is one of his “top picks” in the industry-both in the short and medium term, will focus on the Fun Vehicle of the same name. He pointed out that Florida has achieved early success in FUV. “Coinciding with the many happy social media posts that we have noticed in recent weeks, the FUV is seriously shipped to Florida. The management noted that, as we said at the meeting, another truck full of vehicles is on the way Given the large number of tourist attractions, gated village communities, campuses, and golf facilities, Florida is the leading reservation state for FUV. The company plans to establish multiple physical locations in the state, including rental fleets.” Shlisky pointed out. The analyst added that in the overall situation of the company, “we can expect that the productivity will continue to increase this year and will expand to a new r-AMP factory and full assembly capacity next year.” Based on all of the above, Shlisky rated Arcimoto stock. In order to buy, his target stock price of $20 indicates that this year there is still a 57% room for appreciation of the stock. (To view Shlisky’s track record, click here.) In general, there are two comments on the FUV that are recorded, which are divided into “purchase” and “hold”. This makes people reach a consensus on the “medium buy” view, with an average price target of $14, which has a 6% upside compared to the transaction price of $13.23. (See FUV stock analysis on TipRanks.) ElectraMeccanica Vehicles (SOLO) ElectraMeccanica Vehicles represents a company that competes in a niche market similar to Arcimoto. The company sells single-seater commuter electric vehicles designed for the urban market with a top speed of 80 mph, a range of 100 miles, and a three-wheel configuration. Compared with FUV, the chassis has more traditional car body structure, doors on both sides of the vehicle and trunk for loading goods. Solo vehicles can be reserved, but ElectraMeccanica has not yet begun delivery. The company has selected Phoenix, Arizona as the location for the proposed plant, which will include the assembly of light vehicles and the battery pack and power electronics testing workshop. ElectraMeccanica also began to diversify its product line by producing two-seater two-seater cars. These are the Tofino sports car and the Electric Roadster. Both have a more traditional car shape than Solo, as well as higher performance and range per charge. Like Solo, both can be booked. ElectraMeccanica is still a real speculative investment. The company has not yet announced quarterly revenue of more than $250,000. As of the end of 2020, the company reported using US$10.5 million in cash for operations, up from US$3.6 million in the same period last year. However, the company also reported that as of December 31, it had $129.5 million in cash on hand. This is a significant improvement from the $8.6 million reported a year ago. The company plans to start delivering vehicles later this year. In his comments on SOLO stock, Shlisky focused on the upcoming vehicles, which are the main catalyst for ElectraMeccanica. “SOLO reiterated that it hopes to achieve retail deliveries for the first time in 2021, most likely to be vehicles produced by the company’s Chinese partners. The company will also continue to launch retail stores (a total of 20 are in operation or have been announced) to produce Test drive and increased bookings… SOLO finally chose to build an assembly plant in Arizona. What we didn’t expect was that it also released the first official micro-mobility. That being said, considering that the SOLO model is on a moped The location between the car and the car, both of which are widely rented, which is what we expect,” the analyst wrote. Most importantly, Shlisky simply said: “Inventory has been fluctuating, but we will stick to it because the initial delivery volume started to reach the lane.” Based on these comments, Shlisky gave SOLO a buy rating. His price target of $7.50 means that there will be about 60% upside in the next 12 months. Like Colliers analysts, the rest of Wall Street is optimistic about SOLO. 3 Add a buy rating and no hold or sell to get a strong buy consensus rating. The average price target is $8.92, which is more aggressive than Shlisky’s price and implies about 90% upside potential. (See SOLO stock analysis on TipRanks) Forum Merger III (FIII) Last but not least is Forum Merger III of Special Purpose Acquisition Corporation (SPAC), which is in the late stages of the merger process with Electric Last Mile Solutions . ELMS is an electric car manufacturer, headquartered in Troy, Michigan, not far from the Detroit center of the American auto industry. Electric Last Mile is working on a city delivery truck, a light freight vehicle with 170 cubic feet of cargo space, can travel 150 miles per charge, and can be fully charged in just 2 hours. ELMS’s EV trucks are specially designed to compete with Class 1 gasoline transport trucks. Although its travel distance is shorter than that of a burning vehicle, its cargo space is indeed larger than that of leading gasoline-powered trucks. In addition, ELMS vehicles are equipped with on-board wireless digital connections, allowing fleet managers to collect real-time data on vehicle routing, tracking and efficiency. The city delivery van can be reserved. Although ELMS has not yet started delivering vehicles, it has already acquired the production capacity needed to meet expected demand. The company has a 675,000-square-foot factory in Mishawaka, Indiana, and is increasing its production capacity to 100,000 commercial vehicles per year. The company plans to start producing the first 45,000 orders at the end of the third quarter of 21. As mentioned above, Forum Merger III will make ELMS public. The merger was announced in December; upon completion, the merged entity will be named Electric Last Mile Solutions and will be listed on the Nasdaq under the ticker symbol “ELMS.” The merger will result in a company worth 1.4 billion U.S. dollars and is expected to generate 379 million U.S. dollars in operating and growth funds. The upcoming SPAC merger attracted the attention of Shlisky of Colliers, who described ELMS as his other “top choice” in the field of electric vehicles. “ELMS is one of the most promising EV-CV stories of this year…ELMS plans to launch a 1-2 delivery vehicle in 2021… It is assembled from kits from its already built Indiana factory,” Shlisky said. Shlisky went on to outline the advantages of the vehicle and its future profit potential:[Its] The upfront cost of 1-2 categories is the same as that of existing ICE vehicles, but it can provide 35% or more cargo space and save fuel and maintenance costs there. With an increase of more than 30% in US e-commerce activity in 2020, a 15% drop in van production, and the exit of three important competitors (10% share) in 2020-2021, there is an urgent need for capacity and ELMS if it is released The execution is strong on the timeline, so it seems to be able to meet this demand. We believe that all of these add up to be one of the more promising EV-CV ideas. Based on these comments, Shlisky suggested buying FIII before the merger. He set the target price for this stock at $13, which means that the stock has 30% upside from the current stock price. All in all, FIII is only a small group of people. A vocal bullish analyst. Both of the two analysts surveyed by TipRanks rated the stock as a “buy.” The stock has a 12-month target price of $18 and a potential return of approximately 81% ( See TipRanks’ FIII stock analysis.) To find good ideas for electric car stocks at attractive valuations, please visit TipRanks’ “Best Buy Stocks.” The newly launched tool combines all the asset insights of TipRanks. Disclaimer: The views expressed in this article are only those of the main analyst. The content is for reference only. It is very important to conduct your own analysis before making any investment.