2 Little Known Electric Vehicle Stocks with Big Upside Potential

The manufacturing of electric vehicles (EVs) has slowed significantly over the past several months because of a global semiconductor chip shortage, labor issues, and supply chain disruptions. However, EVs are expected to dominate the automotive market of the future as governments worldwide implement several policies to support the industry’s growth, primarily to address climate change concerns.

Investors’ optimism in the EV space is evidenced by the Global X Autonomous & Electric Vehicles ETFs’ (DRIV) 10.4% returns over the past three months. Furthermore, many semiconductor companies are ramping up their production to meet the rising demand for chips, supported by government and private investments. According to a SpendEdge report, the EV market is expected to grow at a 20.4% CAGR between 2021 - 2025.

Given this backdrop, Wall Street analysts expect little-known EV stocks Electric Last Mile Solutions, Inc. (ELMS) and Lightning eMotors, Inc. (ZEV), to more than double in price over the next 12 months.

Click here to checkout our Electric Vehicle Industry Report for 2022

Electric Last Mile Solutions, Inc. (ELMS)

ELMS is a commercial electric vehicle solutions company that focuses on designing, engineering, manufacturing, and customizing electric last-mile delivery and utility vehicles. ELMS is headquartered in Auburn Hills, Mich.

On November 8, 2021, ELMS announced its intention to move ahead with plans to launch its  Urban Utility vehicle after its board approved production. The company sees the introduction of its Urban Utility as an opportunity to expand its target customer applications significantly.

ELMS’ total assets were  $385.98 million for the period ended September 30, 2021, compared to $25.24 million for the period ended December 31, 2020. For the quarter ending September 30, 2022, analysts expect ELMS’ EPS to increase 34.5% year-over-year. Wall Street analysts expect the stock to hit $15.33 in price in the near term, which indicates a potential 131.9% upside.

Lightning eMotors, Inc. (ZEV)

Loveland, Colo.-based ZEV designs, manufactures, and sells electric vehicles. It offers class 3 to 7 battery-electric and fuel cell electric vehicles. The company's vehicles include passenger vans, ambulances, shuttle buses, last-mile delivery vans for parcel and delivery, micro-transit, airport parking operations, and electric utilities.

On December 13,ZEV agreed to supply battery products produced by Contemporary Amperex Technology Co. Limited, a global leader of innovative new energy technologies. The agreement further diversifies Lightning eMotors’ battery pack options, enhancing the company’s ability to produce and deliver new vehicles at a faster pace.

ZEV’s revenues increased 65% year-over-year to $6.26 million for its fiscal third quarter, ended September 30, 2021. The company’s total assets came in at $230.62 million for the period ended September 30, 2021, compared to $24.87 million for the period ended December 31, 2020. Also, its net cash provided by financing activities for the nine months ended September 30, 2021, were $237.05 million, up 1,328.2% year-over-year.

Analysts expect ZEV’s revenue to be $119.69 million in its fiscal 2022, representing a 449% year-over-year increase. The company’s EPS is expected to increase 96.3% for the quarter ending March 31, 2022. Wall Street analysts expect the stock to hit $14 in the near term, which indicates a potential 112.8% upside.

Click here to checkout our Electric Vehicle Industry Report for 2022

ELMS shares were trading at $6.27 per share on Wednesday morning, down $0.34 (-5.14%). Year-to-date, ELMS has declined -53.69%, versus a 29.32% rise in the benchmark S&P 500 index during the same period.

Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.

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