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Which electric car stocks are more worth buying?


April 22, 2021

7 minutes of reading

This story originally appeared on Stock market

Investors Are Watching 2 Electric Vehicle Stocks Right Now

Electric vehicle stocks are some of the most popular investments in stock market right now. And, there are a couple of good reasons for this. For some of the top EV stocks offer investors some of the most exciting opportunities. But more importantly, what is really motivating Top electric vehicle stocks higher this week was President Joe Biden’s statement Tuesday. From Proterra’s virtual tour He mentioned that the United States should be the most important supplier of buses and electric vehicles in the world. Hence, ArcLight Clean Transition Corp (NASDAQ: ACTCSpecial purpose acquisition (SPAC), which will merge with Proterra, rose more than 15% on Wednesday.

Considering this, it is important to note how the infrastructure plan can have an impact on the EV space. Biden has proposed spending $ 174 billion to boost production and sales of zero-emission buses and cars. The White House’s push for electrification comes as China dominates the world’s electric vehicle and bus market. Hence, many people come up with lists green invest share hope to take advantage of this trend.

Now, after a few muted sessions in the EV space, the focus is on EV startups. And these names are in vogue stock market today. Among them are Group arrived (NASDAQ: ARVL) and Churchill Capital IV (NYSE: CCIV). These two names seem to be preparing for a comeback in the stock market. Could they pose a threat to? Tesla (NASDAQ: TSLA) is another question to answer. But now, let’s get into details about how these two EV stocks stack up.

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Group arrived

Arrival is a UK-based electric vehicle company that focuses primarily on light commercial vehicles. The company is currently trading on the Nasdaq after completing the merger with CIIG Merger Corp, one SPAC.

Since its public launch on March 25, ARVL shares have not been performing as many investors expected. And that might not be surprising given that the company has yet to ship any of its pre-orders. But comments from the President regarding the state of the electric vehicle market in the US are what keeps ARVL on investors’ watch list.

Admittedly, the country’s production and supply of electric vehicles are behind China at the moment. Therefore, many investors are speculating that Arrival could fill the gap after the company listed shares last month. The electric bus manufacturer also said it has received a lot of attention for its vehicles. That includes a commitment to buy up to 10,000 EV words United Parcel Service (NYSE: UPS), plus the option to order up to 10,000.

ARVL shares received a boost after offering its first prototype Electric Delivery Valve

The company’s stock price soared Wednesday after it achieved what it calls “Milestone“for the company. ARVL shares rose 18% before closing 12% higher for the day. This comes after the company announced it has delivered its first prototype electric truck to the market. UPS should be pointed out that UPS is also an investor in Arrival.

best electric vehicle stocks to buy (ARVL stock price)
Source: TD Ameritrade TOS

In addition, the company announced that it will build the first two in the US “micro factory“. These facilities are aimed at manufacturing electric vehicles without an assembly line. This will require lower upfront capital spending compared to traditional manufacturing facilities. Could that make ARVL shares more attractive compared to other EV stocks? Well, it’s certainly risky investing in electric vehicle companies that don’t currently have any sales. But the fact that Arrival delivered its first prototype truck to UPS was a positive sign. And investors are cheering it on in the right way.

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Lucid Motors – Churchill Capital Corporation IV

Churchill Capital Corp. IV is a special purpose acquisition company incorporated with Lucid Motors. For the uninitiated, Lucid is the brainchild of former Tesla chief engineer Peter Rawlinson. Since the merger information was confirmed, this stock has attracted a lot of attention from investors. This week, investors in CCIV stocks are seeing some good gains coupled with a wider EV space in terms of what appears to be bolstering the right winds.

SPAC shares (CCIV shares)

In addition to having cars with some sleek designs ready for sale in the second half of the year, Lucid is also making a game into the energy storage space. This shows that the EV maker has a couple of tricks up its sleeve. The company is looking at innovative ways to create additional value in its product chain.

Perhaps, it won’t turn out to be a very profitable endeavor. However, if Lucid successfully executes this initiative, it could become a bigger player in the energy storage space than many think.

Shares CCIV is a game in Biden’s infrastructure plan

As an American electric vehicle company, Lucid is well positioned to grow its business over the next few years. As you may not have known, the Biden administration is said to be looking to end the legal battle with California over motor vehicle emissions. If there is an exemption under the Clean Air Act, investors believe that stricter fuel emissions standards will directly benefit luxury electric vehicle manufacturers like Lucid Motors.

Electric vehicle stocks (share price CCIV)
Source: TD Ameritrade TOS

Lucid’s short-term outlook looks great even without government stimulus. Don’t forget that the company’s Lucid Air has a reservation. Some even say that valuing CCIV shares makes CCIV shares a huge buy right now. At current levels around $ 20, shares are down almost 70% from their all-time high. Besides, investors can invest together with institutional investors like BlackRock. If you believe the company can successfully execute its plan and achieve a revenue of more than $ 23 billion over the next few years, CCIV stock looks like a steal right now.

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Conclusion: ARVL stock vs. CCIV stock

For now, both electric vehicle manufacturers have yet to actually sell any vehicles. But they certainly have interesting developments of their own. With Lucid planning to distribute the first batch of Lucid Air in the second half of 2021, we could see some sales this year. That may be enough to allay concerns about CCIV’s stock valuation. With an annual capacity of 30,000 units at its current facility in Arizona, Lucid appears to be in a good position to meet its electric vehicle needs. Furthermore, the fact that Lucid is researching energy storage capabilities could be a sign of bigger things to come.

On the other hand, political support for the electrification of school buses and some transit vehicles in the US could be a huge catalyst for Arrival. Becoming one of the earliest companies to focus on commercial vehicles could bode well for the company. Hence, many people are betting on Arrival as a major commercial electric vehicle supplier. Admittedly, commercial electric vehicles may not receive as much attention as passenger electric vehicles. And that may be the exact reason why ARVL shares could rise significantly.

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