Investors may want to use the pullback in electric vehicle stocks as an opportunity.
Global leaders want millions of EVs on the roads and automakers are abandoning combustion engines for electric vehicles. On a global level, sales are only accelerating.
In the U.S., as Car and Driver notes, “American car shoppers seem to have discovered the electric car. After a decade of slow but steady sales growth, electric vehicle registrations in the U.S. shot up 60 percent in the first quarter of 2022 even as overall new car registrations dropped 18 percent. It’s the latest indication that domestic EV acceptance may have turned some important but invisible corner recently.”
One of the best EV stocks to own in the U.S. is Tesla (TSLA).
At the moment, it’s wildly oversold at double-bottom support around $725 a share. It’s also oversold on RSI, MACD, and Williams’ %R. From its current price, we’d like to see Tesla test overhead resistance around $1,200 again, near-term. Tesla also shows no clear signs of slowing growth. In fact, in its most recent quarter, the company said it earned $3.2 billion, or $2.86 per share, as compared to the $438 million, or $0.39, earned a year earlier.
Revenue was up 81%, to $18.6 billion, from $10.39 billion. Analysts only expected adjusted earnings of $2.26 on sales of $17.85 billion.
Or take a look at Nio Inc. (NIO).
Nio (NIO) is accelerating after hitting a 52-week low of $11.67. It’s also over-extended on RSI, MACD, and Williams’ %R.
Bank of America just upgraded the stock to a buy rating from neutral, and boosted the price target to $26. Even better, explains a note from BoA obtained by CNBC, “We like NIO for its (1) advantages in the premium smart EV segment, (2) solid volume sales back by continuous new model launch to help share gain, (3) focus on autonomous driving, powertrain, and charging solution to enhance user experience.”
With EV demand only set to race higher, we’d use recent temporary weakness as an opportunity to buy on the cheap. Before long, stocks like TSLA could be back above $1,000.
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Source: Investors Alley