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3 Electric Vehicle Stocks Outperforming the Market in 2022

The EV industry is expected to deliver solid growth this year, supported by robust government funding and strong demand. With countries worldwide focusing on reducing their carbon footprints, the EV industry’s prospects look bright. So, let’s take a closer look at EV stocks Proterra (PTRA), Lordstown Motors (RIDE), and Kandi Technologies (KNDI), which have been outperforming the broader market so far this year.

This year holds immense opportunities for the EV market as countries push to reduce carbon emissions on the path to net-zero by 2050. According to BloombergNEF, to achieve this target, 60% of new car sales worldwide must be electric by 2030. Although the current shortage of semiconductor chips is expected to impact the production of EVs in 2022, Gartner forecasts six million electric cars will be shipped this year, up from four million in 2021.

Last year, President Biden had set an ambitious target to make half of all new vehicles sold in 2030 zero-emissions vehicles. And this month, his administration unveiled its plan to award nearly $5 billion to build electric vehicle charging stations over five years, with a plan to deploy $615 million in 2022. In addition, President Biden and the U.S. Department of Energy intend to allocate $2.91 billion in support of EV battery manufacturing. These fundings should boost the overall EV industry.

Because of the EV industry’s growth potential, EV stocks, Proterra Inc. (PTRA), Lordstown Motors Corp. (RIDE), and Kandi Technologies Group, Inc. (KNDI) have been outperforming the broader market so far this year.

Click here to checkout our Electric Vehicle Industry Report for 2022

Proterra Inc. (PTRA)

PTRA develops and produces commercial electric vehicles. The Burlingame, Calif., concern operates in three business units: Proterra Powered; Proterra Energy; and Proterra Transit.

Last month, Nikola Corporation (NKLA), a global leader in zero-emission transportation and energy infrastructure solutions, and PTRA, announced a strategic, multi-year supply agreement to power Nikola zero-emission semi-trucks with Proterra’s industry-leading battery technology. This represents Proterra’s expansion into the Class 8 truck market and should garner significant returns for the company over the agreement period.

On December 14, PTRA announced its plans to open a new EV battery system manufacturing plant in South Carolina to produce its battery systems for Proterra Powered customers’ commercial electric vehicles, including delivery and work trucks, industrial equipment, buses, and more. This should help the company cater to the growing demand for commercial electric vehicles worldwide.

PTRA’s total revenues increased 30.3% year-over-year to $61.94 million in its fiscal third quarter, ended September 30. Its gross profit stood at $2.66 million, up 39.5% year-over-year. The company’s net income improved 177.5% year-over-year to $36.32 million.

The $400.82 million consensus revenue estimate for the current year indicates a 66.2% year-over-year increase. Also, the company’s EPS is expected to improve 53.5% year-over-year.

PTRA shares have gained 15.8% in price over the past month but have slumped marginally year-to-date to close yesterday’s trading session at $8.79.

Lordstown Motors Corp. (RIDE)

RIDE operates as an automotive company. It develops, manufactures, and sells Endurance, an electric full-size pickup truck for fleet customers. RIDE is based in Lordstown, Ohio.

Last November, RIDE and Hon Hai Technology Group (“Foxconn”), one of the largest electronics manufacturers in the world, announced an asset purchase agreement regarding RIDE’s facility in Lordstown, Ohio. RIDE has agreed to sell to Foxconn the Lordstown facility, excluding certain assets, and the companies will pursue a joint venture to co-design and develop vehicle programs for the global commercial fleet market. “This transaction provides LMC a better opportunity to fulfill its original mission of satisfying the growing demand for electric vehicles, particularly in the underserved commercial market, with a more flexible business model,” stated Daniel Ninivaggi, Chief Executive Officer of Lordstown Motors Corp.

The company reported a net loss and loss per share of $95.81 million and $0.54, respectively, for the third quarter, ended September 30. However, for the nine months ended September 30, RIDE’s cash provided by financing activities rose 108.5% from their year-ago value to $105.84 million. Also, its cash and cash equivalents balance came in at $233.83 million, representing a substantial increase from the $19.71 million  year-ago value.

Street expects the company’s EPS to improve 29.7% year-over-year in its fiscal year 2022.

Over the past month, the stock has gained 20.8% in price to close the last trading session at $3.14.

Kandi Technologies Group, Inc. (KNDI)

KNDI develops, produces, and distributes electric vehicle (EV) products, parts, and off-road vehicles in the People’s Republic of China and internationally. It is headquartered in Jinhua, the People’s Republic of China.

Last month, KNDI announced its framework agreement with Hunan Hengrun Automobile Co., Ltd. (“Hengrun”) to produce battery-swap jointly enabled pure electric vehicles. The company expects to leverage its battery swap expertise and Hengrun’s vehicle production expertise to create meaningful new benefits for customers. The partnership should promote the company’s growth in fast-advancing China’s EV industry.

In December 2021, KNDI announced that its wholly-owned subsidiary, Jiangxi Province Huiyi New Energy Co. Ltd (Huiyi), had commenced mass production of its lithium iron phosphate (LFP) battery IFR18650-2200mAh, one of the most advanced in the global market. “We are confident that Kandi can strengthen its market position in the supply chains of various electric vehicles as we integrate Huiyi into our operations,” said Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi,

In the fiscal third quarter, ended September 30, KNDI’s total revenues decreased 10.3% year-over-year to $16.79 million. Its gross profit declined 29.7% from its year-ago value to $2.75 million.

Analysts expect KNDI’s revenue to increase 43.4% year-over-year to $136.10 million for fiscal 2022.

The stock has returned 9.6% over the past month but has declined marginally year-to-date to close the last trading session at $3.20.

Click here to checkout our Electric Vehicle Industry Report for 2022

PTRA shares were trading at $8.75 per share on Friday afternoon, down $0.04 (-0.46%). Year-to-date, PTRA has declined -0.91%, versus a -8.25% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.


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