This electric vehicle ETF soared 20% in January. Analysts give 2 of its stocks another 100% upside


One EV-related exchange-traded fund just had its best week in nearly a year, and also outperformed in January – soaring 20.66%. The Global X Lithium & Battery Tech ETF was up nearly 8% last week – its best week since March 2022, according to CNBC analysis. It also marked the fund’s fourth straight weekly gain. That’s a turnaround from its roughly-30% loss in 2022. EV makers in the ETF, such as Tesla , BYD and Lucid , led the gains this year, jumping 40%, 27% and 71% respectively in January. Lithium and EV battery producers, such as Albemarle and CATL , also did well, soaring 30% and 18% respectively. Lithium is a critical component of electric vehicle batteries. Automakers have been in the spotlight this month, with Tesla slashing prices to boost demand and Ford following suit . Analysts say Tesla’s price cuts could spur an EV pricing war . Using FactSet, CNBC Pro screened the Global X Lithium & Battery Tech ETF for stocks that analysts say have potential upside of at least 10%, on average, and buy ratings from over 40% of analysts covering them. These 10 stocks turned up on the screen. EV makers Rivian , Lucid and Tesla made the list. Analysts give all three significant potential upside, according to Factset. Rivian shares are seen rising by 100% over the next 12 months on average, while Tesla has 13% upside, and Lucid has 18% potential upside, according to analysts. Lucid shares have already jumped over 70% so far this year. On Friday alone it surged 43% amid market speculation that Saudi’s Public Investment Fund wanted to buy out the company. Bank of America in a Jan. 30 note said that Lucid “is one of the most attractive among the universe of start-up electric vehicle (EV) automakers and also a relative competitive threat.” “We believe LCID currently has more pieces of the puzzle in place and in process than most of its peers which, steered by a management team with impressive experience, should push the company more successfully from concept to commercialization,” said the bank’s analysts. Analysts are also bullish on Warren Buffett-backed Chinese EV maker BYD, giving it 36% upside potential. Over 75% have a buy rating on the stock, which has already climbed 27% in January. Battery makers Freyr and Enovix Corporation stood out for having the biggest potential upside, at 108% and 285% respectively. Both are also popular among analysts, with Enovix the only company on the list to have a 100% buy rating from analysts. Goldman in a recent note said that U.S.-listed Freyr has the biggest upside potential among EV-related stocks after the company announced plans to expand in the U.S. — CNBC’s Michael Bloom contributed to this report.

South Korea posts the worst trade deficit in its history

Previous article

What Wall Street is expecting from Shell, TotalEnergies and BP earnings

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News