This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.
It’s no secret that electric cars are becoming more and more popular these days. But will the electric vehicle (EV) trend carry over to pickup trucks?
According to Tyler Hoover — who runs the Hoovie’s Garage YouTube channel with 1.4 million subscribers — an electric pickup truck might not be a great option if you need to tow something.
In a recent video, Hoover tried to tow an old 1930s Ford pickup with his brand new Ford F-150 Lightning. The test didn’t go well, as the new electric truck used up way more range than expected.
“If a truck towing 3,500 pounds can’t even go 100 miles … that is ridiculously stupid. This truck can’t do normal truck things,” Hoover says.
The video, titled “Towing with my Ford Lightning EV Pickup was a TOTAL DISASTER!” has now amassed more than 2.7 million views.
“You would be stopping every hour to recharge, which would take about 45 minutes a pop, and that is absolutely not practical.”
But does that mean it’s time to ditch EV stocks? Not necessarily. Although EV stocks have largely pulled back this year, some analysts still see big opportunities in quite a few of them.
Don’t miss
- A guide to the best Canadian ETFs of 2022
- Want to invest outside of the stock market? Try fine art
- Make sure you’re not overpaying on car insurance
Ford (F)
Hoover might not be pleased with his recent towing experience with the F150 Lightning, but the electric pickup truck is still selling like hotcakes.
In September, Ford delivered 1,918 units of the F150 Lightening, which means the model continues to be America’s best-selling electric pickup. Year to date, it has sold 8,760 units of the model.
The F150 Lightning isn’t the only EV in Ford’s lineup. The company also sold 2,324 units of the Mustang Mach-E SUV and 449 units of the E-Transit van in September. That brings Ford’s EV sales to 4,691 units for the month, representing a 197 per cent increase year-over-year.
“Ford continued to see high-demand vehicles turning at record rates in September while developing electric truck and van leadership and extending our overall truck leadership,” Andrew Frick, a Ford VP said in a press release. “Demand remains strong with new retail orders rapidly expanding.”
Ford shares are down a painful 42 per cent year to date. But Bank of America analyst John Murphy sees a glorious revival on the horizon.
Murphy has a ‘buy’ rating on Ford and a price target of $28, implying a potential upside of 123 per cent.
Tesla (TSLA)
When you think about pure-play EV stocks, Tesla is probably the first one to come to mind.
Sure, its shares have gone on a rollercoaster ride — they are down nearly 40 per cent in 2022 — but Tesla’s EV sales are still booming.
Earlier this month, the company reported that for Q3, it delivered 343,830 EVs (18,672 Model S/X and 325,158 Model 3/Y). The amount represented a 42 per cent increase year over year.
Tesla also substantially ramped up its production. In Q3, it produced 365,923 EVs (19,935 Model S/X and 345,988 3/Y), or 54 per cent more than its production in the year-ago period.
Still, Morgan Stanley analyst Adam Jonas points out that the company’s Q3 delivery figure missed the consensus estimate. But he still sees upside in the stock.
Jonas has an ‘overweight’ rating on Tesla and a price target of $383 — roughly 61 per cent above where the stock sits today.
ChargePoint Holdings (CHPT)
ChargePoint Holdings doesn’t produce any electric cars, but it’s still solidly positioned for the EV boom.
The company has one of the largest EV charging networks in the world. It has around 5,000 commercial and fleet customers, including 80 per cent of Fortune 50 companies. Since its inception, ChargePoint has delivered more than 133 million charging sessions.
Of course, given that EV stocks haven’t been market darlings this year, it’s no surprise that this EV infrastructure play was caught in the sell-off as well. ChargePoint shares have fallen 22 per cent year to date.
That could give bargain hunters something to think about.
In the fiscal quarter ended July 31, ChargePoint generated $108.3 million of revenue, marking a 93 per cent increase year over year. This was driven by a 106 per cent increase in networked charging systems revenue and a 68 per cent increase in subscription revenue.
JPMorgan analyst Bill Peterson has an ‘overweight’ rating on ChargePoint and a price target of $20 — around 28 per cent higher than the current levels.
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174 per cent over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.
This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and believes may be helpful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Post a Comment