Three of the Most Oversold Electric Vehicle Stocks

by | May 16, 2022 | Stocks to Watch

The blood shed may be over for electric vehicles stocks.

Nio (NIO), for example, is accelerating after hitting a 52-week low of $11.67. The oversold EV stock is also over-extended on RSI, MACD, and Williams’ %R. From a current price of $14.63, we’d like to see it challenge $17.50 again, near-term.

Helping, Bank of America just upgraded the stock to a buy rating from neutral, and boosted the price target to $26. Even better, according to the firm, ““We like NIO for its (1) advantages in the premium smart EV segment, (2) solid volume sales back by continuous new model launch to help share gain, (3) focus on autonomous driving, powertrain, and charging solution to enhance user experience,” as noted by CNBC.

Or, take a look at Tesla (TSLA).

After falling from $1,150 to double bottom support around $725.37, the EV stock has become oversold as well. With time, we’d like to see TSLA rally back to $1,150.

There’s also Li Auto (LI).

At the moment, Li Auto is starting to pivot higher from a recent low of $18.82. From a current price of $22.12, we’d like to see it closer to $28 a share. Helping, the company just posted adjusted EPS of three cents on sales of $1.5 billion. Analysts were looking for a loss of seven cents on sales of $1.4 billion.

“Despite recent pandemic-related bumps on the road, we are forging ahead with our plan to commence the deliveries of our second model, the L9, in the third quarter,” said CEO Xiang Lee, as quoted by CNBC. “The L9 is a flagship smart SUV for family users based on our new-generation EREV platform, offering best-in-class performance, safety, and intelligence.”

We also have to remember the world is undergoing a massive shift to electric vehicles.

Global leaders want millions of EVs on the roads. Automakers are abandoning combustion engines for electric vehicles. Also, EV sales around the world are only accelerating. In the U.S., for example, “American car shoppers seem to have discovered the electric car. After a decade of slow but steady sales growth, electric vehicle registrations in the U.S. shot up 60 percent in the first quarter of 2022 even as overall new car registrations dropped 18 percent. It’s the latest indication that domestic EV acceptance may have turned some important but invisible corner recently,” as noted by Car and Driver.

In short, weakness in EV stocks may be an opportunity.

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