TSLA, RIVN, LCID: Electric Vehicle Stocks Year In Review
George, you couldnt go anywhere in the in the financial markets throughout 2021, particularly in the latter half of 2021, without seeing names like tesla and rivien and lucid dominating headlines yeah, i mean youre right alex. If you consider whats been going on this year, its been a wild ride, but this year has really been another year: phenomenal performance for companies like tesla in the ev space, but also now a lot of competitors, domestic competitors which essentially have gone public like lucid and Rivian, i think, at the end of the day, were seeing uh, really the market dictate or give us some language or information on really whats going on and how the competitive landscape is sort of sort of forming were seeing tesla from a performance standpoint continue to to Move nicely through the end of the year, whereas, as we know, rivien and lucid, which again came public, this last year had gone had gone parabolic. But i think, at the end of the day, that the investors have really found that these companies, dont necessarily have the scalability like tesla, has and even tesla themselves is facing competition from the likes of companies like toyota, gm and even volkswagen. And i think right now at least going into 2022 and maybe into the following year and potentially into the next uh to the next decade in 2030, were going to see the number of evs that are produced globally from multiple manufacturers really heat up.
As we see demand for evs rising, we see, of course, uh hydrocarbon based fuels rise in price and theres, also again, more global and domestic mandates to control emissions. So this is not a uh. You know sort of a one hit wonder kind of technology. This is technology thats here to stay, but it has been interesting to see this uh performance of companies, for instance like rivien, which even today still garners about an 85 billion dollar market cap and is only generating about a million dollars a quarter in sales. You also have uh, you know ceos that like to poke the bear, if you will and make headlines on their own – that, of course added to some of the intrigue of this space throughout 2021, but lets move on from just the eevee makers themselves. I i dont think investors have a shortage of information to to look at for that space, but maybe some of the things that are overlooked at times are some of the ancillary businesses behind uh sectors and so well. You need to you know, look at the names that are actually creating these vehicles, but if theres vehicles out there on the road being powered by electricity, you got to charge them somewhere. George yeah infrastructure. I think this is going to be another theme for 2022 and going forward and really about charging stations. You know the the charging network is, is building out or being built out domestically internationally, but its not certainly fully developed.
I mean theres petroleum or gas stations on every corner, theres, not necessarily charging stations in every corner yet so i think this is a theme to certainly keep an eye on going forward, but i think you know looking at this whole industry group, which is developing what I notice is theres actually about three different uh companies that seem to have been gaining market share in the charging space at blink charging, chargepoint and evgo, which is another fast charging network and, of course, a charging station, a company that is also trading relatively well. This year, now all these companies, your date alex, are down. They have been up considerably at some point in time and i think the elements of the market, especially the uh, the less appetite for growth, centric and non profit, making companies and companies that are burning cash. Like all these, charging companies are have been facing some price headwinds, uh from a stock standpoint in the last few months or so, along with a lot of the growth centric based names. Uh. Looking at you know, comparatively speaking, the russell 2000, but i think going forward. You know, maybe investors will be starting to piece through or parcel through these companies and look for those companies that arent necessarily building just charging stations, but i think the theme that wall streets really going to be looking for is services either battery is a service in Other words leasing batteries to uh, to ev manufacturers as well as consumers.
The other thing is software and services, anything with battery battery battery management, battery optimization, in other words, energy, optimizations, but also ancillary electricity services, in other words, being able to sell uh, oversupplied battery or energy back to the grid. These are all types of services that a lot of these companies are moving into. So i think chargepoint is an interesting one in that regard, when it comes down to selling services primarily versus the highly capital intensive station build out which uh blink seems to be focused on. So i think going forward if youre an investor looking at the uh, the charging stations watch for those and pay close attention and perhaps do some due diligence and research on those theyre providing some services, but also relationships with larger fleets. Companies like uber and lyft in the rideshare space, maybe fedex amazon, but also government governments, a big buyer of evs, so thats another thing you got to keep in mind from a market standpoint, no doubt about it.