Tesla (TSLA) delivers solid quarterly data worth buying.
Gores Guggenheim (GGPI) enters key partnership further boosting its prospects.
Nio (NIO) is offering an attractive chart entry after a trifecta of bullish drivers.
April showers have turned into a gloomy storm system on Wall Street. And electric vehicle stocks are skidding out of recent rallies with the best of them on increasingly bleak-sounding sound bites, forecasts and warnings from here, there and everywhere.
Behind the worried risk-off behavior, Wall Street is squaring off with both bond inversions and Deutsche Bank warning of a global recession, as well as spiking Treasury yields on the back of increasingly hawkish dialogue by members of the Federal Reserve.
The blue-chip Dow Jones Industrials are off 0.80%. A slightly riskier S&P 500 is down 1.35% and the more growth-dependent Nasdaq has been hit by 2.50%. And many EV stocks unsurprisingly, look like car wrecks.
There's always a chance Wall Street's bearish mood swing turns into a more menacing correction. But without getting ahead of ourselves, it's time to take advantage of a confirmed market rally and pullbacks in three electric vehicle stocks showing bullish and sustainable progress off and on their price charts.
Tesla (NASDAQ:TSLA) is the first of our electric vehicle stocks to buy.
It's fair to say the first thing that comes to mind when thinking of EV's could arguably be Tesla. It's synonymous and the gold standard in the market. But that's not what makes TSLA stock a buy today.
This week TSLA missed on its first-quarter delivery forecast. It "only" put the rubber to the road on 310,000 vehicles compared to an estimate of 317,000. More importantly, that's still 68% above 2021's Q1 result and makes Tesla's sales growth objective of 50% for 2022 that much easier to achieve.
Sure, there's the risk suspended operations at Tesla's Shanghai factory due to Covid or that pandemic-related lithium battery supply woes could worsen. Then again, let's not forget that amid today's gloom, TSLA and the world can also put those sort of challenges in the rearview mirror.
On the price chart investors can take advantage of this week's technical braking action and purchase TSLA stock as it challenges its cup-shaped base's 50% retracement level that's also backed by an oversold monthly stochastics crossover. Vroom, vroom!
Gores Guggenheim (NASDAQ:GGPI) is the next of our electric vehicle stocks to buy.
Unlike Tesla, investors may not have heard of GGPI. But the SPAC is set to merge with Sweden's Polestar, whose engineering pedigree with Volvo's racing team are setting its EVs apart with their differentiating Grand Turismo style and performance.
Shares of GGPI are also cheap compared to its EV competition. InvestorPlace's Mark Hake does a good job of explaining why the stock could be worth $24 a share inside of 18 months.
And this week the electric vehicle stock benefited from an announcement that car rental giant Hertz Global (NASDAQ:HTZ) has placed an order for up to 65,000 Polestar EVs as part of a new global partnership.
Technically, this EV stock enjoyed a bullish reaction in the report's wake as shares gained nearly 12% while reaching four-month highs.
But GGPI was already standing out from the crowd this year and is now separating itself further by being up on the year and working entering the right side of its lifetime corrective cup-shaped base.
I'm with Mark on this electric vehicle stock. But to capture a double or better with improved odds and less risk, GGPI bulls might want to consider a January $12.50 / $17.50 bull call spread instead.
Nio (NYSE:NIO) is the last of our electric vehicle stocks to buy.
Right or wrong, but mostly mistaken, the Shanghai-based EV play has been lumped in with Chinese ADRs at risk of being delisted from U.S. exchanges by SEC regulators for naughty behavior. And it resulted in much larger bear market losses over the past year for NIO stock.
But Nio is no Tencent Holdings (OTCMKTS:TCEHY) or Didi Global (NYSE:DIDI) with skeletons to be unearthed. The electric vehicle stock has proven itself to be squeaky clean operation and keeping to the letter of the law in the U.S. over the past couple years.
And now it's presenting a baby-with-the-bathwater opportunity as Chinese regulators appear willing to make allowances for audits of U.S.-listed ADRs by American regulators.
Aiding and abetting this electric vehicle stock purchase, strong deliveries data and an analyst upgrade this week also helped confirm an oversold and well-supported hammer bottom.
In conjunction with a technical forecast of $35 to $40 inside the next couple quarters, buckling up with an actively managed collar strategy to guard and even profit from bumps in the road is a favored approach for this electric vehicle stock.
On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
