Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Why I'm Recommending a $44 EV Stock Today
https://moneymorning.com/?p=1182935
Required Please enter the correct value.
Twitter
Stocks: F, GM, NIO

Why I'm Recommending a $44 EV Stock Today

By Andrew Keene, Special Contributor, Money Morning • July 16, 2021

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

The world's biggest economies, like the United States, China, India, and the European Union, have put increasingly tough emissions standards on vehicles - one of the largest sources of carbon emissions.

Last week, the European Union slapped Germany's "Big Four" legacy automakers - Volkswagen, BMW, Audi, and Porsche - with fines totaling $1 billion for running afoul of EU standards.

European regulators alleged the companies colluded for more than five years to avoid competing to advance cleaner emissions technology in diesel engines. The EU regulation sets minimum standards for diesel emissions, in expectation that automakers would compete with one another to lower emissions.

Instead, the car manufacturers worked together to stifle competition - their lawyers admitted as much and agreed to settle.

Now, many of these companies have been fined before, for things like price-fixing. But this is the first time ever that the EU has dropped the hammer over technology, and it sets a precedent for legacy automakers across the globe; they should be worried.

It's a new ballgame out there, all over the world.

The world's electric vehicle (EV) makers, and their stocks, have a huge advantage in this game, particularly this one...

Everything Is Changing for Carmakers

Back in February, some research out of Morgan Stanley caught my eye. The message and takeaway were pretty earth-shaking, but I'm not sure how many other eyes it caught because the note was more or less buried on the internet.

A Morgan Stanley auto industry analyst wrote, "We believe the market may be ascribing zero (or even negative) value for internal combustion engine-derived revenues at GM and Ford." Let that sink in for a second: Traditional engines, gas-powered cars, might very well be a liability - a drag on automakers' balance sheets and stock prices. The analysis bluntly said that gasoline engines could very well be a money-losing idea by 2030.

The big American automakers, unlike the Germans, apparently, are embracing EVs and the technology that comes along with them. General Motors Co. (NYSE: GM) has even committed to stop selling tailpipe-emitting vehicles by 2035. Ford Motor Co. (NYSE: F) hasn't gone quite that far, but it's taken some bold, definitive steps toward EV technology.

Investors who recognize a huge profit opportunity when they see it have rewarded these companies for their forward thinking on EVs; Ford stock is up more than 66% year to date, and GM is up 44%.

And of course, I've made some recommendations there, too - there's still room in a lot of portfolios for legacy carmakers who've committed to making the transition to electric.

But I think the profits from "native" EV makers could be even better, and that's where today's recommendation, NIO Inc. ADR (NYSE: NIO), comes in.

Why Right Now Is the Time to Move on NIO

NIO is one of China's biggest EV makers right now, and it's a major player in the autonomous vehicle (AV) race, too.

The stock is having a "buyable moment."

Lots of U.S.-listed Chinese stocks have sold off recently because of investor concerns over a supposed Beijing-led "crackdown" on Chinese companies trading on the big American exchanges, but here's the thing: Virtually nothing has happened since word of the so-called "crackdown" broke more than a week ago. Seems the Chinese government's bark is worse than its bite.

China has launched "cybersecurity reviews" of data-centric firms listing in New York, but that's about it - and besides, NIO makes electric cars, not apps.

NIO shares have actually sold off 5% or so over the past two days, but they're down less than $1 for the month, just touching on their 50- and 200-day moving averages. The stock actually went through a Death Cross last month, but it's begun recovering.

At the company's recent "Power Day mini-roadshow," the company announced plans to accelerate its battery swap service, whereby it swaps customers' discharged EV batteries for fresh ones. Right now, around 30% of its customers live within two miles of one of NIO's "Swap Stations." The company wants to bump that number up to 90% by 2025.

The EV market in China is growing more quickly than the American market; China is home to more than 44% of all EVs in the world, and sales are growing at 36% a year, which suggests a big, long-term boost to the company's bottom lines. NIO has plans to start selling EVs outside of China, with the most likely target being the European Union.

NIO is only one must-own stock in the new, red-hot EV space. This sector deserves every investor's attention.

There's another company - trading for around $2 right now - that's risen tenfold (1,147%) over the past year, but even bigger potential gains could be up ahead.

This small stock is looking to IPO on a major exchange, which means that 1,147% gain could now be mirrored over the next year or so. Here's what you need to know...

Follow Money Morning on Facebook and Twitter.

Join the conversation. Click here to jump to comments…

Andrew KeeneAndrew Keene

About the Author

Browse Andrew's articles | View Andrew's research services

Andrew Keene is a globally known trader and a renowned expert on all things options.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz