It’s no secret that electric cars are becoming more and more popular these days. But will the electric vehicle trend carry over to pickup trucks?
According to Tyler Hoover, who runs the Hoovie’s Garage YouTube channel with 1.4 million subscribers, an electric pickup truck might not be a good choice if you need to tow something.
In a recent video, Hoover attempted to tow an old Ford pickup truck from the 1930s with his new Ford F-150 Lightning. The test did not go well, as the new electric truck consumed much more range than expected.
“If a truck that tows 3,500 pounds can’t even go 100 miles … that’s ridiculously stupid. That truck can’t do normal truck things,” Hoover says.
The video, titled “Towing my Ford Lightning EV pickup truck was a TOTAL DISASTER!” it has now amassed over 2.3 million views.
“You’d be stopping every hour to recharge, which would take about 45 minutes each time, and that’s totally impractical.”
But does that mean it’s time to ditch EV stocks? Not necessarily. Although EV stocks have largely retreated this year, Wall Street still sees great opportunities in many of them.
Don’t miss out
Ford (F)
Hoover may not be happy with its recent towing experience with the F150 Lightning, but the electric pickup is still selling like hotcakes.
In September, Ford delivered 1,918 units of the F150 Lightening, which means the model remains the best-selling electric pickup truck in America. So far this year, it has sold 8,760 units of the model.
The F150 Lightning isn’t the only EV in Ford’s lineup. The company also sold 2,324 units of the Mustang Mach-E SUV and 449 units of the E-Transit van in September. This brings Ford’s electric vehicle sales to 4,691 units for the month, representing a 197% year-over-year increase.
“Ford continued to see high-demand vehicles turning over at record rates in September as we developed electric truck and van leadership and expanded our global truck leadership,” Ford vice president Andrew Frick said in a press release. “Demand remains strong with new retail orders expanding rapidly.”
Ford shares are down a painful 42% year to date. But Bank of America analyst John Murphy sees a glorious revival on the horizon.
Murphy has a “buy” rating on Ford and a $28 price target, implying a potential upside of 123%.
Tesla (TSLA)
When you think of pure-play electric vehicle stocks, Tesla is probably the first that comes to mind.
Sure, its stock has been on a rollercoaster ride (down nearly 40% in 2022), but Tesla’s electric vehicle sales are still booming.
Earlier this month, the company reported that for the third quarter it delivered 343,830 electric vehicles (18,672 Model S/X and 325,158 Model 3/Y). The amount represents an increase of 42% compared to the previous year.
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Tesla also substantially increased its production. In the third quarter, it produced 365,923 electric vehicles (19,935 Model S/X and 345,988 3/Y), or 54% more than its production in the one-year period.
Still, Morgan Stanley analyst Adam Jonas notes that the company’s third-quarter delivery figure missed the consensus estimate. But he still sees upside in the stock.
Jonas has an “overweight” rating on Tesla and a $383 price target, roughly 61% above where the stock is today.
ChargePoint Positions (CHPT)
ChargePoint Holdings doesn’t produce any electric cars, but it’s still solidly positioned for the EV boom.
The company has one of the largest electric vehicle charging networks in the world. It has approximately 5,000 commercial and fleet customers, including 80% of Fortune 50 companies. Since its inception, ChargePoint has delivered more than 133 million charging sessions.
Of course, given that EV stocks haven’t been loved by the market this year, it’s no surprise that this EV infrastructure play has also been caught in the selloff. Shares of ChargePoint are down 22% year to date.
This might give bargain hunters something to think about.
In the fiscal quarter ended July 31, ChargePoint generated revenue of $108.3 million, up 93% year-over-year. This was driven by a 106% increase in network charging systems revenue and a 68% increase in subscription revenue.
JPMorgan analyst Bill Peterson has an “overweight” rating on ChargePoint and a $20 price target, about 28% upside from current levels.
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This article provides information only and should not be construed as advice. It is provided without any warranty.
