December 27, 2021 EV Basket Weekly Uptrend Opportunity based On 1.00 Lot Calculation:
- MARKET OVERVIEW: The Electric Vehicle industry experienced a boom as more and more countries decide to go electric. The United States, for example, wants to increase EV sales by 2030, and the goal is 50% of every car sold by 2030 to be an Electric Vehicle. Meanwhile, the Biden administration just recently announced that they will replace the Federal Government’s fleet with Electric Vehicles.
- EV SECTOR: Many EV companies are trying to penetrate the market with innovative technology and new models accompanied by lower (more competitive) prices. Earlier this year, Lucid came up with The Lucid Air Touring model, while NIO earlier in December introduced its new ET5 Sedan. Fisker presented its OCEAN, that will start delivery in 2022 with excellent pre-order levels. Rivian, which went public in November 2021, came up with a model (truck) called Rivian R1T. The Chinese XPeng unveiled the G9 sports utility in late November, in addition to the G3 SUV and the P7 and P5 sedans.
- EV MARKET: According to a recent study, there is potential the number of EV buyers to increase from over 2 million in 2016 to 200 million by 2030. The EV market has estimated that it will grow to more than 800 billion dollars by 2027, and with that pace of growth, to more than $1 trillion after 2030. Rystad Energy forecasts that the overall global market share of EVs for 2021 will reach 8% in the base case and 9% in the high case, and these percentages are expected to be 23% and 29%, respectively by 2025.
ELECTRIC VEHICLE BASKET
|
Company |
Ticker |
Sectors |
% to Recent All-Time |
All-Time High Price and Dates |
|
Nio |
#NIO |
Electric Vehicle Manufacturer |
128% |
January 11, 2021 ($66.85) |
|
Fisker |
#FISKER |
Electric Vehicle Manufacturer |
88% |
March 2, 2021 ($31.96) |
|
Rivian |
#RIVIAN |
Electric Vehicle Manufacturer |
88% |
November 16, 2021 ($179.45) |
|
Lucid |
#LUCID |
Electric Vehicle Manufacturer |
68% |
February 18, 2021 ($64.86) |
|
XPeng |
#XPENG |
Electric Vehicle Manufacturer |
64% |
November 24, 2020 ($74.49) |
Source: Bloomberg
POTENTIAL STOCK PRICE REACTION (BASED ON STATISTICAL ANALYSIS FOR THE PAST 12 MONTHS)1
|
Downside potential |
Upside Potential |
|
-21.67% |
+35.46% |
|
Potential Profit/Loss on 1 lot of every stock in the basket2 |
|
|
-$137,380 |
$224,755 |
|
-€121,489 |
€198,757 |
|
-£102,539 |
£167,755 |
|
-C$176,201 |
C$288,266 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
|
Company |
Support |
Current Price |
Resistance |
|
Nio |
$24.17 |
$30.86 |
$41.80 |
|
Fisker |
$13.63 |
$17.40 |
$23.57 |
|
Rivian |
$75.98 |
$97.00 |
$131.39 |
|
Lucid |
$29.61 |
$37.80 |
$51.20 |
|
XPeng |
$36.03 |
$46.00 |
$$62.31 |
Note: Support and Resistance Levels have been calculated by using upside and downside potential figures.
Please note that past performance does not guarantee future performance.
1-Calculation Downside/Upside Potential: Based on statistical analysis of monthly stock returns of all companies in the Electric Vehicle sector for the past 12 months.
2-Profit/Loss Calculation (**): Based on 1 lot (*) on each of the five stocks (5 lots). Range: based on the statistical analysis.
* Nio and Rivian: 1.00 lot is equivalent to 1000 units. Fisker and Lucid and XPeng: 1.00 lot is equivalent to 5000 units
** Calculations for exchange rate used as of 09:38 (GMT) 27/12/2021.
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail