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There’s a surge in the electric vehicle (EV) market, and some stocks are accelerating towards multibagger status. These stocks have the horsepower to potentially grow their value exponentially, making the initial investment look like a leisurely Sunday drive.
Rev up with Tesla (TSLA)
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Tesla (NASDAQ:TSLA) leads the EV pack, surpassing traditional automakers in market value. With a financial performance that revved up to a $96.8 billion total revenue in the past year, TSLA is not idling. Tesla plans to invest $10 billion in 2024 to launch its next-generation vehicles and expand its Supercharger network, a pit stop that could speed up adoption in North America.
General Motors (GM): Shifting Gears
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General Motors (NYSE:GM) is revving its engines with a revenue of $42.98 billion last quarter. GM aims to sell at least 250,000 EVs in 2024 and is accelerating with a $10 billion share repurchase program and stock dividend increase, signaling a shift towards electric on the financial highway.
Ford (F): Steering Towards the Future
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Ford (NYSE:F) joins the electric race with plans to introduce seven new EV models, aiming for a global production of over 2 million EVs by 2026. Ford’s commitment to electrification includes a $2 billion investment in new EV production and a joint venture for battery manufacturing, filling up its electric tank for the long haul.
XPeng (XPEV): Accelerating Ahead
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XPeng (NYSE:XPEV) zooms past its U.S. rivals, delivering 141,601 vehicles in 2023. With plans to launch new models and amp up its autonomous driving tech, XPeng is shifting into high gear. The company’s focus on AI-driven autonomous driving could steer it towards the fast lane in the EV market.
Fisker (FSR): Driving Towards Growth
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Fisker (NYSE:FSR) is set to hit top gear, eyeing sales of 20,000 to 22,000 vehicles with rising revenue projections. With a focus on consumer-direct sales and strategic capital allocation, Fisker aims to rev up its revenue growth and revitalize its stock performance.
NIO (NIO): Sparking the EV Sparks
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NIO trailblazes the EV path with its innovative models and market strategy. With a record-breaking delivery streak and a focus on advanced autonomous driving tech, NIO is charging ahead. As the EV market heats up, NIO aims to keep the sparks flying high.
Revving Up: NIO and Blue Bird Accelerate in the EV Market
NIO Drives Growth in China’s EV Market
The electric vehicle (EV) landscape is buzzing with excitement as NIO, listed on NYSE, continues to make significant strides in China. In 2023, NIO recorded a stellar performance by delivering 160,038 vehicles, showcasing a robust 30.7% year-over-year growth. By the year’s end, the total tally of vehicles delivered by NIO stood at an impressive 449,594. Furthermore, December alone witnessed NIO dispatching 18,012 vehicles, marking a 13.9% surge from the previous year.
Looking towards 2024, NIO has set ambitious targets, aiming to deliver over 230,000 units. This goal represents a substantial 50% increase compared to the previous year. The company is gearing up to introduce a new model under its Alps sub-brand in the latter half of 2024, built on the NT 3.0 platform.
Revenue Growth and Future Projections
Industry analysts foresee a significant revenue surge for NIO by 2024, even though the firm is predicted to grapple with losses until at least 2025. Projections for the end of 2024 estimate revenues hitting 70.81 billion CNY with an anticipated net loss of 15.97 billion CNY.
Blue Bird: A Soaring Prospect in the EV Sector
The NASDAQ-listed company, Blue Bird (BLBD), is quickly gaining traction in the EV space with its focus on electric buses. With strong buy ratings and growing investor interest, BLBD presents itself as a compelling opportunity for potential multibagger returns.
Financial Performance and Outlook
In the previous year, Blue Bird witnessed a remarkable 41% surge in net sales, reaching $1,132.8 million. The company’s GAAP net income saw a considerable boost, soaring to $23.8 million, a stark $69.6 million increase from the year before. Additionally, adjusted EBITDA experienced a positive trend, escalating to $87.9 million, up by $102.7 million from the prior year.
Heading into fiscal 2024, Blue Bird kicked off with record-breaking first-quarter earnings. The company reported net sales of $317.7 million, marking a 35% year-over-year increase, while its GAAP net income stood at $26.2 million, showcasing significant growth. Furthermore, adjusted EBITDA hit an all-time high at $47.6 million, reflecting a $51.1 million rise from the same quarter in the previous year. The surge in success was attributed to a 9% increase in unit sales.
Upward Revision in Guidance
Blue Bird recently upped its guidance for FY2024, with net revenue estimates set between $1.15 billion and $1.25 billion. The adjusted EBITDA range was also revised, expected to fall within $120 million to $140 million, alongside adjusted free cash flow projections of $60 million to $70 million.
Matthew Farley’s Insights
Matthew Farley, whose expertise spans the financial markets, heralds the growth potential of NIO and Blue Bird in the ever-evolving EV sector. His keen observations bring to light the promising trajectories both companies are embarking upon.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
