Tesla (NASDAQ: TSLA) has risen in recent years to become a major producer of electric vehicles and one of the world’s most valuable automakers overall. Even with a stock split in 2020, Tesla carries a hefty price tag for investors. Those seeking bargains can find strong investment opportunities by looking for smaller companies involved in the industry.
The following two companies have affordable stocks with strong potential for growth as the electric vehicle market expands.
Fisker Inc. (NYSE: FSR)
This California-based company was founded by Henrik Fisker, a veteran of the auto industry who has worked as a designer for companies including BMW and Aston Martin.
Fisker is developing innovative electric vehicles to compete directly with Tesla and large automakers. The company is financially stable with $1 billion of cash and equivalent assets. Fisker’s Ocean SUV is set to release in 2022 and will be offered for sale as well as lease, making Fisker unique among its peers. There’s a likely upside available for investors.
The high-end price target of $27.00 suggests that Fisker stock will produce strong returns in 2021. As a bargain pick for electric vehicle investors, it’s one of the more promising options.
Blink Charging Co. (NASDAQ: BLNK)
Once a high-potential penny stock, Blink Charging Co. is now a mainstream investment. Even so, it still has plenty of growth potential and the company’s earnings and revenue are likely to scale along with the wider electric vehicle market.
Blink doesn’t produce cars. Instead, it creates charging solutions for electric vehicles. Think of the company as a gas station for a new era. Instead of gas, it sells electric fuel, and Blink already has almost 15,000 charging stations distributed throughout the United States.
Blink’s shares have soared in recent months, thanks to the widespread realization among investors that electric vehicles are indeed the future. Because Blink’s chargers work with electric vehicles regardless of make and model, the company is perfectly positioned to profit from the success of companies like Fisker and Tesla.
The current average target price of $63.50 suggests that Blink’s stock still has plenty of room to climb.
The Electric Vehicle Revolution is Here
Global electric vehicle sales increased by 39% year over year in 2020. The industry is changing. Major automakers, including Ford and General Motors, have committed to developing fully electric lineups within the next decade.
Electric vehicle manufacturers and ancillary companies are prime targets for investment in 2021. The stocks above are two of the best to consider this February.
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