Here’s a Lesser-Known Electric Vehicle Stock Worth Checking Out
The hottest companies going into the future aren’t just tech startups, but those which are supported by new technologies. This includes telecom services, companies building better batteries, and of course, green energy-related companies. Global firms are pledging to reduce their carbon footprint. They are looking for any which way they can stave off an impending climate crisis.
A Top Electric Vehicle Stock On the Rise
As a result of this trend, the green energy sectors look good — even if traditional energy stocks are performing too. The fact of the matter is that investors are more concerned with the environment: socially responsible investing is on the rise.
In fact, most green energy stocks look great, with solar power now becoming the cheapest way by which electricity is produced. The world has come a long way in the past few decades.
One of the most extraordinary changes we will face in the years to come will be the transition to electric vehicles. There will be a wholesale change in how we power our vehicles, from commercial to industrial ones. Electric vehicle stocks are set to explode going into the future — there is no doubt about that. The transition is already happening.
While you might think Tesla is the best electric vehicle stock, you should know that there are many others available as well. Today we will delve into one EV stock other than Tesla that is worth keeping an eye on. In fact, you should monitor the entire sector in general because it could become extremely lucrative.
An Electric Vehicle Stock That Isn’t Tesla
The EV stock we are recommending is Niu Technologies. This China-based company designs, manufactures, and distributes mobility solutions, all electric vehicle-based. The company also makes smart electric two-wheelers and offers its products worldwide.
Niu Technologies’ share price has increased over three times since the start of the year, growing from $8.7 to $27. The vast majority of its business comes from China — for both its premium and lower-end models. The cheapest model is priced at $400, a very affordable price given the novelty of the technology.
The company recently released its Q3 quarterly report, and the sales figures looked good. They were promising enough to boost its share prices, which jumped just over 10% following the news. The company sold 250,889 e-scooters in the third quarter, which represented a 67.9% growth from last year. Approximately 5,600 of these were sold internationally — a small figure perhaps, but still a 6.3% growth rate.
The total number of e-scooter sales so far in 2020 is 451,187, which is a 43.2% year-over-year growth. This is still a good record, given the fact that we are in a time of a pandemic. Overall, the company shows healthy signs of growth going forward, especially in the Chinese market.
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For the highest returns, your best bet is to go for a stock that isn’t the market’s favorite, i.e., Tesla. Niu Technologies looks good in many ways and has a good position in one of the world’s biggest markets. The introduction of more affordable models is likely one reason why business has shown some growth, despite the pandemic.
While Tesla might be the most popular, it has not yet attained a global reach. It is still a young market, set for an explosive growth in the next few years. It is even likely that more governments will push for more electric vehicle usage. That alone will send EV stock values much higher.
Niu technologies is only one of many options you have. Any prudent investor will tell you that you must have one such stock in your portfolio, regardless of our recommendation. Whatever your thoughts on this, do not overlook these companies.
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What do you think about Tesla’s competitors? Are you a big believer in the green energy sector overall? Let us know in the comments below.
Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.