Everyone knows by now that electric vehicles (EVs) are the future and sector leader Tesla is already a world-famous brand.
While those that cottoned on early to the opportunity have done well by backing Tesla, the sector presents plenty of other opportunities for investors, especially now that government policies are tilting heavily in EVs’ favor.
Recent times have seen the passing of the Inflation Reduction Act (IRA) which contains initiatives and tax credits to help accelerate EV adoption, while the Bipartisan Infrastructure Law includes an EPA program which offers rebates for school districts, school bus operators and contractors which replace current school buses with clean and zero-emission (ZE) models.
So, let’s put Tesla aside and check out other less obvious opportunities in the space. We pulled out of the TipRanks database two EV makers which stand to gain from these new policies, and which also get the backing of the Street’s experts; both are rated as Strong Buys by the analyst consensus and offer ample upside potential from here.
Lion Electric Company (LEV)
We’ll start with Lion Electric, a Canadian manufacturer of all-electric medium-and heavy-duty vehicles. Its current line up boasts seven mid-range truck and bus models including the all-electric class 6 and class 8 commercial urban trucks (LION 6 and LION 8), the all-electric midi/minibus the LionM, and the LionC, an all-electric Type C school bus.
The company is aiming to boost capacity in a big way with a new 900,000 sq. ft. manufacturing facility in Joliet, where it expects production will begin by the end of the year. This is to accommodate the expanding order book for its electric buses and trucks.
The offerings are already seeing decent growth, albeit still on a small scale. In 2Q22, the company delivered a record 105 units which consisted of 90 EV school buses (EVSB) and 15 commercial electric trucks, an increase over the 72 EVSBs and 12 trucks delivered in 1Q22 and the 48 EVSBs and 13 trucks delivered in the same period a year ago.
The sales resulted in a top-line of $29.5…