Fisker
Tesla has established a “significant pioneer advantage” over new entrants to the constantly expanding electric vehicle market, but a few other smaller names stand out, according to CFRA’s Garrett Nelson.
In a note published on Wednesday, the senior equity analyst said that Rivian, Lucid Motors and Fisker, backed by Amazon, will emerge as “success stories” with EV sales rising in 2021.
Nelson uses four categories to analyze emerging electric vehicle manufacturers: 1) the specifications (price, range, etc.) and the general attractiveness of their initial vehicle models; (2) financial considerations, such as their sources of financing, balance sheets and liquidity; (3) the opportunity for growth in its sub-sector; and (4) management experience and credibility.
He said that all three names do well in each category. In addition, all three automakers will be among the first to bring electric vehicles to the roads, with Rivian and Lucid expected to put models on the roads this year and Fisker in late 2022.
Fisker debuted on the public markets in October, while Lucid Motors announced a merger with SPAC Churchill Capital Corp. IV on Monday. Rivian plans to go public in September, with a valuation of $ 50 billion, Bloomberg reported earlier this month.
Nelson added that Tesla has an advantage over new entrants; citing how the company increased its US EV sales volume by more than 50% last year.
“With all the talk about increasing competition from new EV models in 2020, Tesla increased its market share by approximately 58% in 2019, as models like Audi e-Tron, Jaguar I-PACE and Nissan LEAF were disappointed with a sales perspective, “added Nelson.
The CFRA predicts that EV sales in the U.S. will grow by more than 50%, exceeding 500,000 units in 2021, especially if the Biden administration passes legislation that could benefit EVs. The research firm has a “strong buy” rating for Fisker and a “hold” rating for Tesla.