Monday, August 3, 2020

EV Truck Maker Lordstown Motors Is Getting Bought - new IPO coming ?

Barrons just reported Lordstown Motors—the company building a new electric truck at a former General Motors plant—is being acquired by a special purpose acquisition company, or SPAC.

DiamondPeak (ticker: DPHC) is buying the EV startup. That’s the company that investors can trade which will morph into Lordstown Motor eventually. When the deal is done, DiamondPeak will change its stock ticker to RIDE.

“We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition,” said Lordstown CEO Steve Burns in the company’s news release.

The transaction will raise about $675 million for Lordstown and values the company at about $1.6 billion. That makes a 10% stake held by the electric-van maker Workhorse (WKHS) worth about $160 million.

DiamondPeak is up 25% in premarket trading. Workhorse stock is rising, too, with a gain of 4%.

In addition to its 10%, Workhorse earns a royalty on sales of Endurance trucks, the ones Lordstown will sell. The deal should be a positive for Workhorse stock.

Workhorse investors, however, are most interested in the U.S. Postal Service. Workhorse is bidding for a contract to replace hundreds of thousands of Post Office vehicles. A decision is due this fall.

A lot of electric vehicle startups have taken the SPAC route to market including FiskerHyliion and heavy-duty truck maker Nikola (NKLA) to name a few. Chinese based Li Auto (LI) looks like an outlier selling shares to the public in a traditional IPO.

There has been a lot of EV activity in 2020. The space is hot, helped, no doubt, by the incredible performance of Tesla (TSLA) shares in 2020. Tesla stock is up about 240% year to date. Tesla is now the world’s most valuable car company.

The Lordstown Endurance is slated to enter the EV competition with a release in 2021. The truck will get a targeted 75 miles per gallon and the company has secured about $1.4 billion worth of preorders.

“Our platform is rooted in sustainability, and the entire Lordstown team is committed to ensuring we contribute to a healthier planet for generations to come,” added Burns.

Coming into the deal, DiamondPeak stock was up about 3% year to date, a little better than comparable returns of the S&P 500 and Dow Jones Industrial Average.

Alibaba increases its stake in Xpeng before EV maker's IPO

According to autonews.com Chinese electric-vehicle startup Xpeng Motors is raising more funds from Alibaba Group Holding and other investors ahead of its planned initial public offering in New York, according to people familiar with the matter.

Qatar Investment Authority also is one of the backers putting in another $300 million total in Xpeng, said the people, asking not to be identified because the matter is private. That expands Xpeng’s pre-IPO funding round announced last month to $800 million. The increased funding reflects investor demand, one of the people said.

The Guangzhou carmaker still may add to its haul before the IPO, the people said, as investor interest in EVs increases following gains in shares of Tesla Inc. and the U.S.-listed Nio Inc. this year. Xpeng competes against those two companies and a raft of other startups in China, the world’s largest EV market.

The company has filed confidentially to the U.S. Securities and Exchange Commission to go public as soon as this quarter, the people said.

An Xpeng representative declined to comment. A spokesperson for Alibaba, an early backer of Xpeng, confirmed the technology giant’s participation in the latest round, without providing details. Qatar Investment, a new investor, didn’t respond to requests for comment. The South China Morning Post earlier reported the increase in the funding round.

After years of developing cars and trying to boost their profiles globally, Chinese EV makers are taking steps to go public as the virus pandemic and economic slowdown squeeze the market, boosting competition. Li Auto raised $1.1 billion via a listing on the Nasdaq last week, and Hozon New Energy Automobile Co. said it would list in Shanghai as soon as next year. WM Motor Technology Co. is also weighing an initial stock sale in China as soon as this year, people familiar with the matter have said.

Xpeng delivered 5,185 units of its first vehicle, the G3 crossover, in the first half. It started deliveries of its second model, the P7 sedan, in July, shipping 1,641 units that month.

Why Kandi Technologies Stock Slumped

What happened

Shares of Chinese electric-vehicle maker Kandi Technologies (NASDAQ:KNDI) were trading lower on Friday afternoon, two days after a surprise rally that more than doubled its share price. 

As of 3:15 p.m. EDT, Kandi's American depositary shares were down about 13.4% from Thursday's closing price -- but still up about 83% for the week. 

So what

Kandi's stock price jumped 140% on Wednesday afternoon, after the company said that it will launch two of its small electric cars in the United States at a virtual event on Aug. 18. Interested customers will be able to reserve the Kandis with a $100 deposit at that time, the company said.

The two cars that Kandi plans to bring to the U.S. are hardly Teslas. They're both urban commuter cars with small battery packs and, shall we say, modest performance. Kandi's U.S. flagship, the K23, is an upright four-door hatchback with an estimated range of 188 miles, a price of about $30,000 before incentives, and a very un-Tesla top speed of just 70 mph. 

A white Kandi K23, a stubby four-door electric hatchback, at a charging station


That doesn't stack up well against the Chevrolet Bolt or Nissan Leaf, both of which offer better range, top speeds more appropriate to U.S. highways, and nationwide service networks -- and build quality that is known to be high -- for not much more money.

Kandi's other U.S.-bound model, the simpler and cheaper K27, is definitely intended as a city car: It has estimated range of around 100 miles, a price of $20,000 before incentives, and a top speed of 63 mph. 

Now what

It's no surprise that the company's stock soared on Wednesday's news, given the intense investor interest in electric-vehicle stocks in recent months triggered by Tesla's massive run-up earlier in 2020. Nobody wants to miss out on the next Tesla -- but on closer examination, Kandi might not be the right horse to bet on in that race. 

I think auto investors have been doing that closer examination and that's why Kandi's stock fell back on Friday. 

NIO Stock Upgrade ?

It's time for the Analysts to review and give an Upgrade to NIO for the below reasons. It might be coming anytime soon today or before the earnings.

1. As reported by Barrons NIO got an upgrade just a week back from Chinese investment bank named China International Capital Corp., or CICC. Analyst Lei Wang upgraded the electric-vehicle maker’s stock to the equivalent of Buy from Hold. What’s more, his price target went to $13.50 from $5.50, up about 145%. 

2. Since it's a chinese stock Analysts never cared but now they are catching up and its due for an analyst rating. I am not talking about the infamous Goldman Sachs Mr Fei Fang who gave a Buy rating then changed it to Hold and then changed it to Sell in a 3 weeks time span. Investors felt he is less credible source because of his inappropriate ratings which can be seen in many investor discussion forums. 

3. There were lot of articles published about NIO stock as costly, use caution. They were right because they thought June 2020 sales deliverable were pure luck for NIO as it never delivered that type of numbers in its history. Today NIO released July 2020 sales- the second best figures that's 2 consecutive sales beat in a row and lots of promising news in the pipeline which will make the same analysts to rethink and reevaluate NIO stock as it is the NEXT Tesla of China. 

4. Analyts are now realizing that NIO built a strong foundation in the last few years with their battery swap facilities, expanding their sales show rooms, NIO houses and so on. Now they are seeing the benefits.

Blue NIO EC6 vehicle parked on a street next to a tree and a green building.

The EC6. Image source: NIO.

NIO delivered second highest ever of 3,533 vehicles in July 2020, increasing by 322.1% year-over-year

According to the press release from NIO click here to read NIO delivered 3,533 vehicles in July 2020, representing a robust 322.1% growth year-over-year. The deliveries consisted of 2,610 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 923 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV. As of July 31, 2020, cumulative deliveries of the ES8 and the ES6 reached 49,615 vehicles, of which 17,702 were delivered in 2020.

Nio delivered the second highest ever in their history despite floods and production halts.

“In July, we are pleased to have achieved the second-highest monthly delivery results despite the impact on productions due to a 5-day suspension of manufacturing to prepare for EC6 productions and other flood-related supply chain challenges,” said William Bin Li, founder, chairman, and chief executive officer of NIO. “More proudly, we have achieved a record-high monthly order growth, attributed to a stronger demand of the ES8 and ES6, together with the increasing EC6 orders, thanks to the continuous support of our users. We believe we will be able to increase our production capacity significantly to support higher deliveries in the third quarter of 2020.

NIO lost 5 days due to flooding and EC6 production which means they delivered 3533 in 26 days. That is 135 cars per day so the lost 5 days they could have delivered 679 more which adds upto 4212 cars. Bin Li said they see a very strong demand for Ec6 orders there new model. September deliveries will include Ec6 according to Bin Li so September will see a record sales number.

Nio was up 6% in premarket and investors are feeling more positive with the strong guidance and they are expecting a turnaround in the earnings report which will be released in a week August 11 according to NIO.

We believe Nio is a Strong buy. Investors are seeing the value now as NIO was able to produce stellar sales consecutively for the last 2 months.

We see upside movement in the stock which will continue till their earnings report on August 11,2020. If they deliver a good earnings this stock is poised to explode. 

Sunday, August 2, 2020

Nio delivered a total of 4,152 units in July from Chinese news outlet [Unconfirmed]

According to the Chinese news website autohome.cn Weilai [Nio] Automobile delivered a total of 4,152 units in July, of which 2,645 were ES6 and 1,507 were ES8, a record delivery volume.

Today August 03, NIO officially announced the correct numbers. Chinese news outlet autohome.cn was a fake report and misleading one. Please refer here for the correct report.

It looks like the Chinese source which we referenced was taken down. We have a screenshot of the news which translates to the below in English 

The Below report was a fake report which was circulated yesterday...Please refer here for the correct report

Full translation of the news reported as per autohome.cn 

 Weilai [Nio] Automobile delivered a total of 4,152 units in July, of which 2,645 were ES6 and 1,507 were ES8, a record delivery volume. The decline in ES6 sales is to give capacity to the more expensive new ES8. ES8 is expected to continue to rank firmly among the top ten medium and large SUVs. At present, due to parts procurement problems, Weilai's production capacity has reached its limit. Previously, the founder, chairman and CEO of Weilai revealed in an interview with Chewei New Media that Weilai is planning to expand production capacity and it is estimated that production capacity will increase significantly in September. In September, Weilai will usher in a new car EC6 and a 100-degree battery. With the increase in delivery of the new ES8, the reputation of the new ES8 is reported to be huge. The sales volume of Weilai in September is expected to rise to a higher level. According to Weilai President Qin Lihong, Weilai’s previous average delivery price was 450,000 yuan. As the proportion of ES8 rises, this average selling price will continue to rise. As a result, NIO will become the only car brand in the Chinese market that can buy more expensive products. This will give great support to the Weilai brand, and it is also a reflection of the increasing acceptance of the brand by users.

Technical Analysis: What happened on Friday [July 31] The Short Term and Long Term Support Level on NIO Inc. (NIO)

NIO Inc. (NIO) has seen some recent action in the market and its shares closed at $11.94 on Friday July 31,2020. Overall the market was red but when stocks entered the green territory towards the end NIO was kept below $12. One reason might be the $12 contracts expiring on Friday and the big boys were in play to make sure that it stayed below $12. There was no negative news for Nio on Friday except for the China tensions which will have no effect on Nio stock as discussed on my previous post. Nio only operates in China market and China is the only country which is seeing a big rebound in the economy as most of the countries are still fighting covid-19. Nio will report record sales number tomorrow and shorts will be burned tomorrow for selling it on Friday. 

Long term investors will be rewarded if they hold this stock for long term. 

Nio will enter the bullish territory starting Monday.Once it breaks the $13 resistance it should rocket up to the previous high of $16. 

Why Plug Power, Bloom Energy, and FuelCell Energy Stocks Are All Moving Higher (Again)

So what
It turns out there is some other news in the alternative energy space that may be helping to fuel these stock price gains, and for that news, we turn to the U.S. Department of Energy (DOE). On June 29, the Department of Energy announced a new program to invest $100 million over five years "in two new DOE National Laboratory-led consortia to advance hydrogen and fuel cell technologies research and development (R&D)."  

Soon after that announcement came out, DOE announced that it will begin accepting requests for proposals from the industry on an apparently separate but related project to support the department's "H2@Scale" initiative to promote "large-scale, affordable hydrogen production, storage, distribution, and utilization across multiple sectors" -- worth $24 million. As DOE further explained, it will be looking for contractors able to help it with "advancing hydrogen fueling technologies for medium- and heavy-duty fuel cell vehicles," and also with "addressing technical barriers to hydrogen blending in natural gas."  

Now what
The $124 million up for grabs from these two DOE programs may not sound like a lot of money. But $124 million is nearly twice FuelCell's annual revenue ($69 million), about half of what Plug brings in in a year ($250 million), and even a pretty good chunk of Bloom Energy's annual sales ($795 million). In short, it's a prize worth winning for any of these three companies.

Proposals from would-be contractors on the $24 million contract, at least, are due by close of business on July 31. It's possible we could see above-average stock strength among fuel cell companies all the way up to when a winner is announced.


Saturday, August 1, 2020

cheapest electric vehicle in the US -- and it comes from China It's called the Kandi K27

Affordability is tough when it comes to electric cars. Even mass-market EVs are often just a little out of reach for the average car buyer, especially considering how much further a dollar stretches when it comes to a traditional car with an engine.

So, can Kandi and its K27 tempt you with an unusually low price? This is a Chinese electric car that will be the most affordable EV for sale in the US later this year. Kandi revealed the K27 alongside the more expensive K23 model on Wednesday and plans to showcase both cars during a virtual event on Aug. 18.

Kandi K23

The K27 costs just $19,999. Kandi promises it's a no-haggle, no-nonsense price. And that's before the $7,500 federal tax credit. That's cheap for any new car, but, well, the price is sort of reflected in the K27's looks.

Honestly, it looks like some sort of weird Smart and Mini Cooper combination. If it snaps necks, it'll be because onlookers are curious what the hell just passed them. We only have one photo of the interior, but it looks pretty no-frills as well. There's a tablet-style infotainment screen (with a blue display that looks bricked in the photo?) and a gear selector below. Next to it sits a dial for various modes. I wouldn't expect soft touch points or anything fancy, but it should check off the box for basic transportation.

NIO Price Target Analysis and its set to defy doomsters and open higher, levels to watch.

  • NYSE: NIO is set to end the week and the month on a positive note. 
  • Nio Inc's shares are seen as expensive while it remains unprofitable.
  • Lessons from Elon Musk's Tesla are promising for the firm. 

Is a market capitalization of around $14 billion rich for an electric vehicle company? Some analysts suggest that NYSE: NIO current valuation – with shares trading above $12 – is expensive. The primary reasoning for the downbeat assessment on Nio Inc - ADR stems from a basic business lacking – profitability.

However, it is essential to note that Nio, based in Shanghai, China, was founded only in late 2014 and may need more time to turn a profit. The largest EV firm, Tesla, struggled not only with income but also with cash flow. 

Nio shares were beaten more because of the china-US tensions. It should be noted that Nio don't sell cars in US and there profits come only from china markets. Whatever might happen between US and China it will have no effect on Nio china. Chinese people feel more anti-american than before which will help NIO over its rival Tesla. Like trump China wants them to buy more Chinese manufactured cars and there are more incentives for Nio than Tesla.

On the other hand, Nio has the backing of Beijing. Authorities may encourage locals to purchase the company's cars and thus create a national champion. Elon Musk's Tesla may be the market leader – but while it sells in China, the local rival may gain market share. 

Tense Sino-American relations may weigh on Nio's sales outside its home country, but the vast Chinese market allows ample room for growth. 

With all the above reasons I strongly feel Nio will reach $50 soon.

The next levels to watch are the weekly closing high of $12.70, followed by the mid-July peak of $14.09, and then by the high close of $14.90 achieved earlier in the month. The stretch target for bulls is $16.44, the 52-week high.

Support is found at Monday's low close of $11.69, followed by $11.09, a level recorded in the previous week. The psychologically significant $10 level is next.

Nio Inc - ADR has made a long journey from the 52-week low of $1.19 and is valued at over 11 times that price. 

5 Best Electric Car Stocks to Buy for the Next 10 Years

Electric car stocks are on fire this year. You might be wondering what's going on.

Recently the KraneShares Electric Vehicle and Future Mobility ETF (NYSEARCA:KARS) is up nearly 30%, versus a mere 5% gain for the S&P 500. This move comes on the back of optimism that rising consumer awareness, coupled with strengthening government support, will drive 36% growth in electric vehicle sales to record high levels in 2021.

While those numbers — a 30% gain for electric car stocks and a 36% rise in electric vehicle sales — may seem huge, this is just the beginning. The numbers will only get way bigger over the next 10 years.

The reality is that this is the beginning of the future of transportation. Diesel cars on their way out. Electric cars on their way in. Electric stocks are also picking up.

Over the next decade, this shift will only accelerate as battery tech improves driving ranges, battery charging infrastructure expands, consumer demand pivots, automobile production capacity makes a similar pivot, battery and electric vehicle prices come down, and public and private pressure to cut carbon emissions escalates. It’s a confluence of tailwinds that will spark a once-in-a-lifetime transportation revolution — and ultimately make electric vehicles ubiquitous by the end of the decade.

Today, electric vehicles only account for about 3% of all passenger cars.

Needless to say, the best of this growth narrative is yet to come … and the best of the rally in electric car stocks will happen over the next decade.

With that in mind, here are the five best electric car stocks to buy for the next 10 years:

  • Tesla (NASDAQ:TSLA)
  • Nio (NYSE:NIO)
  • Nikola Motors (NASDAQ:NKLA)
  • Arcimoto (NASDAQ:FUV)
  • Kandi Technologies (NASDAQ:KNDI)

Electric Car Stocks: Tesla (TSLA)

Electric Car Stocks: TSLA
Source: Sheila Fitzgerald / Shutterstock.com

The godfather of the electric vehicle industry, Tesla is and will remain one of the best electric car stocks to buy for the next 10 years.

In 2019, Tesla controlled about 16% of the global passenger electric vehicle market. That number is up from 8% in 2017, thanks to new cars and geographic expansion.

These two drivers will remain in place for the next several years. Tesla will launch the Model Y this year. Then the Cybertruck after that. Then more cars after that. At the same time, the company will continue to push deeper into Europe, establish a premium leadership position in China and eventually makes its way into Latin America.

Against the backdrop of all that growth, Tesla will continue to produce the best cars in the business, because the company has a huge lead when it comes to battery technology and autonomy. Concurrently, Tesla’s brand equity is second to none. That strong brand equity won’t be diluted anytime soon.

Tesla will remain the unparalleled leader of the consumer EV market for the next several years. As the market booms, so will Tesla’s revenues. And Tesla’s profits. And the TSLA stock price.

Nio (NIO)

Electric Car Stocks: NIO
Source: Sundry Photography / Shutterstock.com

Tesla’s little brother from China, Nio, is also one of the best electric car stocks to buy for the next 10 years.

The premium EV maker went in reverse in 2019. The Chinese auto market crumbled. Chinese EV sales plateaued. Demand for Nio’s vehicles plunged. The company’s losses widened. The balance drained cash.

But everything has changed in 2020.

China’s auto market is rebounding, with auto sales posting positive growth in April 2020 for the first time in 21 months. China’s EV sales are once again setting monthly record highs.

Nio’s vehicle deliveries doubled in both March and April, and are expected to rise more than 150% in the second quarter. The company’s adjusted net loss narrowed by more than 40% in the first quarter. And the balance sheet scored 7 billion yuan in financing from a group of strategic investors.

These favorable trends will persist for the next several years.

Population growth plus urbanization will drive auto market sales growth. Rising consumer awareness, falling prices, expanding charging infrastructure and increased government support will drive bigger EV sales growth.

New vehicle launches and increased production capacity will drive even bigger Nio sales growth. Economies of scale will kick in, and today’s losses will turn into tomorrow’s profits. NIO stock will fly higher.

All in all, investors should stick with NIO stock for the long haul. This is a potential multi-bagger in the making.

Nikola Motors (NKLA)

The newest electric car stock on Wall Street, Nikola Motors, made a splashy debut via a reverse merger in early June.

In a matter of days, NKLA stock soared from $30 to $90.

Why? Because this company has “Tesla of Trucks” written all over it.

In short, Nikola is a $23 billion next-generation vehicle maker. It’s leading the way in creating a new class of futuristic, zero-emission and cost-effective trucks. The company intends to first service the commercial market with electric and hydrogen delivery trucks, and then the consumer market with electric and hydrogen pick-up trucks.

If the company successfully executes against its opportunity to materially disrupt the trucking industry — and the company should be able to given its huge backing, technological advantages, strategic partnerships and hydrogen market leadership — then this could be a $100 billion company one day.

To that end, NKLA stock is one of the best electric car stocks to buy for the next 10 years.

Arcimoto (FUV)

Source: Pavel Kapysh / Shutterstock.com

One of the more exciting electric car stocks in the market is that of $72 million, Oregon-based EV maker Arcimoto.

Arcimoto is all about three-wheel EVs. The company understands that the future of cars is not three wheels. But its bet is that three-wheel EVs have enough specialty use cases across the globe, that demand for these smaller, nimbler and cheaper vehicles will be quite robust.

And that sounds like the right bet to make.

Specifically, Arcimoto’s consumer-oriented product, the Fun Utility Vehicle (FUV), looks positioned to become a next-generation ATV of sorts. It will be the urban vehicle of choice.

Then there’s Arcimoto’s commercial-oriented products, the Deliverator and the Rapid Responder. The Deliverator is a three-wheel, compact delivery EV aimed at optimizing last-mile delivery logistics by improving speed and cutting costs. The Rapid Responder is a three-wheel, compact emergency EV aimed at enabling law enforcement, security and emergency services to more quickly and affordably respond to incidents.

Deliveries of FUV started in late 2019. Production of commercial cars will start in late 2020.

Across these various consumer and commercial verticals, Arcimoto’s potential is quite enormous. Much, much bigger than its current $72 million market cap implies.

Kandi Technologies (KNDI)

Source: buffaloboy / Shutterstock.com

Last, but not least, on this list of electric car stocks to buy for the next 10 years is Chinese EV maker and parts supplier Kandi Technologies.

Best known as the company which pioneered the EV battery swap model — which simply involves replacing an EV battery once it’s drained — Kandi was once considered a leader in China’s EV market. That was back in the early 2010s, when battery swapping was considered a necessity in a world full of EVs that took forever to charge and had limited driving ranges.

But, as EV technology has improved and charging times have dropped alongside rising driving ranges, many countries — including the U.S. — have entirely ditched the battery-swapping model.

China hasn’t. Instead, China is doubling down on its efforts to make the battery-swap model ubiquitous across the entire country through battery standardization.

Why? Because the battery-swap model is cheaper. Consumers don’t own their batteries. They rent the batteries. By removing the cost of battery ownership, the battery-swap model significantly lowers retail prices of EVs, which China hopes will promote mainstream adoption and help the country reach its ambitious sustainability targets.

In any event, all of that means that Kandi’s core technology is coming back into vogue in China. As it does over the next several years, Kandi’s growth narrative will reaccelerate and beaten-up KNDI stock — which has fallen from $20 to $3 in six years — will rebound with vigor.