With rising climatic change concerns and surging gas prices, demand for considerably cheaper, battery-run, and sustainable electric vehicles has surged of late. According to a Canalys report, approximately 6.5 million electric vehicles (EVs) were sold worldwide in 2021.
Strong government backing, supportive federal policies, and increasing consumer demand is expected to shape the EV industry’s performance over the long term. According to Fortune Business Insights, the U.S. electric vehicle market is projected to grow at a 25.4% CAGR in the 2021-2028 period.
Therefore, fundamentally strong electric vehicle stocks Arrival (ARVL) and Sono Group N.V. (SEV) could be solid additions to one’s watch list now, despite declining more than 55% in price year-to-date. Wall Street analysts expect them to rally by more than 280% in the near term.
Click here to checkout our Electric Vehicle Industry Report for 2022
Arrival (ARVL)
Based in Howald, Luxembourg, ARVL focuses on designing, assembling, and distributing commercial electric vehicles (EVs) worldwide. Its portfolio of EVs includes commercial EV vans, buses, and cars.
On Nov. 8, 2021, Denis Sverdlov, founder and CEO, ARVL, said, “In the third quarter, we are excited to see these technologies come together as we install our first two Microfactories in the U.S. and U.K. and get ready for launch. We are excited by our progress and expect to be rapidly scaling Microfactories in the coming years as we build capacity to meet the growing demand for our vehicles.”
ARVL’s net finance income came in at €20.39 million ($22.18 million) for the third quarter, ended Sept. 30, 2021, compared to a €1.22 million ($1.33 million) cost. The company’s total current assets came in at €471.03 million ($512.44 million) for the period ended Sept. 30, 2021, compared to €153.53 million ($167.02 million) for the period ended Dec. 31, 2020. Its total assets came in at €1.04 billion ($1.13 billion) compared to €449.89 million ($489.44 million) for the same period in the prior year.
ARVL’s EPS is expected to increase at a 62.4% rate in 2022. The has declined 57.7% in price year-to-date to close yesterday’s trading session at $3.14. Wall Street analysts expect the stock to hit $12 in the near term, which indicates a potential 282.2% upside.
Sono Group N.V. (SEV)
Based in Munich, Germany, SEV manufactures and sells electric cars with integrated solar cells and mobility services. The company offers a bidirectional wallbox, power-to-go technology, and variable battery solutions.
On Nov. 17, 2021, SEV made its debut on the Nasdaq Global Market. The company raised €137 million ($149 million) in net proceeds through its IPO, which it plans to use to develop Sion, the world’s first solar-powered electric vehicle. Furthermore, its reservations increased by nearly 4,000 in 2021, up 31% year-over-year. The company’s cash position at year-end 2021 came in at €133 million ($144.65 million).
Analysts expect SEV’s revenue to increase by 4,072.7% to $4.59 million in 2022. The stock has declined 58.1% in price year-to-date to close yesterday’s trading session at $4.0350. Wall Street analysts expect the stock to hit $22 in the near term, which indicates a potential 445.2% upside.
Click here to checkout our Electric Vehicle Industry Report for 2022
ARVL shares were trading at $3.28 per share on Tuesday morning, up $0.14 (+4.46%). Year-to-date, ARVL has declined -55.80%, versus a -11.97% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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