Electric vehicles have recently excited investors as important collaborations were announced by two companies that gave their stocks a boost.
Examining Electric Vehicle Stocks that Experienced Price Rise
A financially fulfilling experience in stock trading comes when you identify an opportunity that could be a potential goldmine. For beginners, commission free trading helps maximize earnings. But as you go along, you need to invest in stocks and industries that have great potential.
Recently, the market has been talking a lot about the electric and alternate fuel source vehicle industry. Wednesday, January 13 saw electric vehicle (EV) stocks rise by double digits. Nikola ($NKLA) and Canoo ($GOEV) were those impressive stocks, rising 11.3% and 16.3% respectively.
What the Potential for Nikola Is
Nikola manufactures electric trucks, unlike Tesla ($TSLA) that focuses on electric passenger cars, sports cars and SUVs. Nikola also develops hydrogen fuel cells that can power vehicles. Motley Fool analyst Howard Smith points out the reason for the stock’s rise is the announcement that the company has reached an agreement with the utility officials in the state of Arizona for developing fueling solutions based on hydrogen to boost the transportation industry.
(Image source: Nikola Corporation – NKLA – Stock Price & News | The Motley Fool)
Smith reminds that 2020 was quite a volatile year for Nikola, as the above-mentioned chart by Motley Fool shows. But any news emerging about its electric trucks and general advancements in hydrogen fuel cells helped raise the stock.
There have been specific factors such as the Plug Power and Renault partnership for hydrogen fuel cell commercial vehicles (CV), which gave investors an idea of the potential of vehicles powered by hydrogen fuel cells. That helped instill confidence in Nikola’s business.
Canoo’s Business Collaboration
As for Canoo, the EV startup reportedly got a boost after news emerged that it had talks with Apple regarding an electric vehicle project. The following chart describes the stock’s bounce back:
While vehicle production isn’t likely to continue till 2022, it has expanded its future model line to include a van, a delivery vehicle, a “home-truck” as well as a “home-sport” car.
Another EV stock that had a great Wednesday was Northern Genesis ($NGA). The stock had a 9.1% rise.
It excited investors with news about merging its business with Lion Electric, the electric truck maker. Lion Electric, in turn, has reported a deal with tech giant Amazon ($AMZN) which could potentially involve investment from the e-commerce giant.
Meanwhile, Tesla stock is also hitting new highs, and now has a market capitalization exceeding $800 billion.
With advanced stock market trading software, you can identify stocks performing well. Expert opinion also matters.
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