When the markets are bearish, it starts to feel like no good investments are available. But if you look hard enough, you’ll find opportunities. EV sleeper stocks are one example of an investment that can be extremely profitable in the long run, even though sentiment is depressed right now. These are stocks that have the potential to see huge growth in the near future as the EV market continues to expand. If you’re looking for an investment, EV sleeper stocks are a good option. They have high returns and low risk.
EV stocks have been the topic of discussion lately, and the reason is simple. With electric vehicles becoming increasingly popular, EV companies are well-positioned to capitalize on this growing trend. However, not all EV stocks are created equal. While some EV stocks are household names, others are relatively unknown. These EV sleeper stocks may be less well-known but often have the most upside potential. In compiling this list, the focus is on growing EV companies with strong fundamentals. These EV stocks may not be household names yet, but they could be poised for big things.
| CHPT | ChargePoint | $13.27 |
| RIVN | Rivian Automotive | $32.19 |
| NIO | Nio | $12.82 |
ChargePoint (CHPT)
Investors are always looking for the next big thing, which includes electric vehicles. However, picking a winner in this rapidly-growing industry can be difficult. That’s where ChargePoint (NYSE:CHPT) comes in. ChargePoint is one of the leading providers of EV charging infrastructure, and it has the potential to dominate the market. It is well-positioned to capitalize on the growing demand for EV charging infrastructure and is definitely a stock to watch.
While other companies are focused on either hardware or software, ChargePoint has built a complete EV charging solution that can be deployed at scale. And with EV sales expected to explode over the next decade, ChargePoint’s integrated approach will continue to do well.
Networked charging systems are on a hot streak, with revenue growing 106% in the second quarter. Meanwhile, subscriptions also registered double-digit growth of 68% year on year. Overall, revenues came in at $108.3 million, up 93% from $56.1 million versus the year-ago period, handily beating analyst estimates. However, Q2 GAAP EPS of net loss was $92.7 million. Apart from missing estimates, the loss also represents an increase from $84.9 million last year.
The biggest positive, though, is the outlook. For the FY ending Jan. 31, 2023, the company reaffirmed guidance between $450 million and $500 million.
At the same time, the company continues to expand its range. It recently announced a new type of AC EV charging solution, CP6000, that is built to service any vehicle. The CP600 is designed with the European market in mind and will provide the company with a solid footing for the next surge of electric vehicle adoption.
Rivian Automotive (RIVN)
EV technology has been around for a while, but it’s only now that it is starting to gain mainstream attention. EV sleeper stocks like Rivian Automotive (NASDAQ:RIVN) are generating a lot of buzz as the EV market continues to grow. Rivian is a relatively new company but has already made waves in the EV world. With a strong lineup of vehicles, Rivian is poised to become a major player in the EV market. The company’s story began way back in 2009. But it wasn’t until 2019 that it gained wide prominence, as Rivian received $700 million from the e-commerce giant Amazon (NASDAQ:AMZN) to help them on this difficult journey. Ford (NYSE:F) also joined in with $500 million, but the partnership between the parties could not last long. However, Amazon is staying the course.
Amazon has announced it will buy 100,000 custom-built electric delivery vans from Rivian. These will join Amazon’s efforts to electrify its last-mile fleet by 2040.
The investment in Amazon is a game-changer. Rivian’s IPO was one of the largest in U.S history, but it has been cast into darkness by an economy that is slowing down and a potential recession to come. But Amazon’s investment is a big boon for the company, and investors will not abandon ship so easily.
The company is giving investors a reason to smile on its own end. The company is cutting back on its production and supply chain to prepare for the future. They’re cutting their entry-level versions of both vehicles and abandoning the R1T truck and R1S SUV models in 2023. It clears up their plate and allows them to concentrate on the goal of producing 25,000 vehicles in 2022.
Nio (NIO)
EV sleeper stocks are a hot topic among investors these days. And one company that always comes up in these discussions is Nio (NYSE:NIO). That’s because Nio has a strategic relationship with the local government of Hefei in China.
Nio secured a $1 billion government bailout at favorable terms at the height of the pandemic. This allowed Nio to continue investing in its business while other companies were forced to cut back. As the world’s largest electric vehicle market, China is crucial to the success of the EV industry, and Nio is better positioned than any other company to take advantage.
At the same time, Nio is also expanding its wings in Europe. At an event in Berlin, the Chinese electric car company announced that it would expand its reach by entering the Netherlands, Denmark, and Sweden. In Norway, the company’s models are available on a subscription basis.
This is great news for Nio as Europe is one of the biggest EV markets in the world. According to Statista, the revenue in the electric vehicle market is expected to reach around $150.30 billion in 2022, and its growth rate is forecasted at an impressive 17.78% from 2022 until 2027, bringing the projected market volume to $340.70 billion by 2027.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.