Cathie Wood Just Dumped $ 270 Million In Tesla – 3 Inexpensive Electric Vehicle Shares To Buy Instead
Super investor Cathie Wood loves Tesla.
But that doesn’t mean she keeps every part of it forever. In fact, his company Ark Investment Management recently embarked on a wave of selling Tesla shares.
Ark’s exchange-traded funds – ARK Innovation (ARKK), ARK Autonomous Technology & Robotics (ARKQ) and ARK Next Generation Internet (ARKW) – sold more than 340,000 Tesla shares early last week, a stake of ‘worth around $ 270 million.
Nonetheless, Tesla remains ARKK’s number one position and Wood has a price target of $ 3,000 for the electric vehicle maker.
For investors who want to invest differently in the EV space, here are three stocks to consider – one of them might be worth buying with your spare currency.
Known as the “Tesla of China,” Nio has also become a big name for US equity investors.
Shares rose from $ 4.02 to $ 48.74 each in 2020, marking a staggering gain of over 1,100%. And thanks to the meme market frenzy earlier this year, Nio has continued to soar, hitting well over $ 60 in January.
Parabolic races don’t last forever, and Nio has since slashed some of the gains. Today, the stock is trading at around $ 34.
While Nio stocks have been on a roller coaster ride, its business continues to grow at a very impressive rate. The company shipped 21,896 electric vehicles in the second quarter of 2021, up 111.9% year-on-year and 9.2% sequentially.
That said, there is competition in the Chinese electric vehicle market. Companies like Li Auto and XPeng are also vying for a share of the action.
And since Li, Xpeng, and Nio stocks have all pulled back noticeably from their 52-week highs, this might be a good time to put a few digital pennies and dimes to work.
One of America’s automakers, shares of Ford fell during the pandemic-induced market sell off in early 2020. But it has since made a comeback.
In fact, Ford’s stock price has more than doubled in the past year alone.
As a company whose best-selling F-Series pickup trucks are, Ford isn’t exactly a stock of outright electric vehicles.
But the management electrifies its programming.
Ford introduced the Mustang Mach-E, a five-door electric compact SUV, in November 2019. The model went on sale in December 2020 and won the North American SUV of the Year 2021 award.
Ford is also working on a fully electric pickup named the F-150 Lightning. Production is expected to start next spring.
Of course, Detroit’s other major automakers are also in the electric vehicle space.
General Motors has long had electric vehicles in its lineup. Meanwhile, Stellantis – the parent company of Chrysler – intends to invest around $ 35 billion in electric vehicles and new software through 2025.
Flashing load (BLNK)
Rounding out our list is Blink Charging, a relatively under-followed name in the EV inventory world.
But it delivered very generous returns to investors.
In early 2020, Blink Charging was trading at less than $ 2 per share. Today it is $ 26.98. You do the math.
What’s even more surprising is that Blink doesn’t make electric cars. Instead, the business focuses on the load side of the business.
Blink has deployed more than 24,000 electric vehicle charging stations and has more than 190,000 registered members. It uses proprietary software that operates, maintains and tracks the EV stations connected to its network.
In the first half of 2021, revenue increased 129% from a year ago to $ 6.6 million.
The growing adoption of electric vehicles is expected to continue to fuel massive growth in Blink’s business.
Certainly, EV stocks are among the most volatile symbols in the market. And they are not cheap.
Tesla is trading at around $ 780 a piece.
If you don’t want to get too much exposure to the segment, there is an app that lets you buy fractions of shares with as much money as you are willing to spend.
The ultimate green asset?
The electric vehicle sector has been a favorite among sustainability-conscious investors.
But if you want to put money where your moral is, you don’t have to limit yourself to the volatility of the stock market.
For example, you might want to consider American farmland.
It’s not as exciting as the shares of electric vehicles. But while the market often struggles to determine the value of EV companies – which is why stocks are often volatile – farmland has intrinsic value.
Over the years, farming has been shown to offer higher risk-adjusted returns than stocks and real estate.
And new platforms allow you to invest in US farmland by taking an equity stake in a farm of your choice.
You will earn cash income from rental fees and crop sales. And of course, you will benefit from any long-term appreciation on top of that.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.