Business & Investment

Better Buy: Tesla vs Green Power

Companies in the electric vehicle sector experienced stellar driving in 2020. The ongoing pandemic destroyed multiple sectors, but the high-growth EV vertical was relatively unaffected by COVID-19. In 2020 Tesla (NASDAQ: TSLA) Inventory increased by nearly 750%, NIO And The power of green (TSXV: GPV)(NYSE: GP) also showed tremendous increases of 1,110% and 1,840%, respectively.

In the first month of 2021, Tesla shares rose 12.5% ​​and NIO rose 17%. By comparison, Canada-based GreenPower took a break as its stake fell 1.1% in January 2021. Investors are likely to remain bullish on companies in the EV sector due to the rapid expansion of the market and the shift to clean energy.

Alternatively, Wall Street may be concerned about the sudden valuation indicators of EV stocks, which could result in market revisions over the next few months.

Compare market leader Tesla with Canada-based Green Power Motors to understand which stocks are the better buys at the moment.

Tesla is the most valuable car maker in the world

The extraordinary performance since the Tesla stock went public means that the company is the most valuable car manufacturer in the world in terms of market capitalization. With a market capitalization of US $ 750 billion, Tesla could become the first car giant to claim a valuation of US $ 1 trillion.

Last year was a game changer for Tesla. The company managed to deliver nearly 500,000 vehicles in COVID-19, despite other global challenges. In 2020, Tesla significantly increased volume, profitability, and cash flow.

In 2020, Tesla Sales increased From $ 24.6 billion in 2019 to $ 31.5 billion, 46% of the previous year. Its free cash flow has almost doubled to $ 1.9 billion, and Tesla is now liquid enough to cover its product roadmap, capacity expansion plans, and other costs.

Tesla’s operating margin was 5.4% in the fourth quarter, but by 2020 this figure rose to 6.3%. In addition, in 2021, Tesla predicts that vehicle deliveries will increase by 50% to 750,000.

Tesla fires on all cylinders, which is reflected in inventory spikes and high praise. Tesla shares are currently trading 10% below record highs, giving investors the opportunity to buy high-quality growth companies at lower multiples.

GreenPower shares are trading 11% below record highs

GreenPower Motors is an EV company that is rapidly gaining popularity among domestic investors. We develop, distribute and manufacture EVs for the North American commercial market. The company’s flagship EV is a 19-seater battery-powered bus called the EV Star.

Many public transport systems in North America are enthusiastic about promoting zero-emission vehicles through subsidy programs that drive demand for Green Power over the next decade.

GreenPower produced 95 vehicles in the December quarter, the company’s CEO said: “Production continued to grow significantly over the last quarter. This trend is expected to continue in late spring and with increased deliveries in the summer. 2021.”

In the quarter Ends in MarchAnalysts expect GreenPower Motors to grow by a whopping 1,180% year-on-year to $ 8.24 million. By 2021, sales growth is projected to be 300%.

verdict

Both Tesla and Green Power have the potential to crush broader market returns in the long run. But Tesla’s leadership position, visionary CEO, and presence in the huge market make it a better bet for now.


David Gardner I own a stake in Tesla. Tom Gardner I own a stake in Tesla. Motley Fool owns and recommends a stake in Tesla. The stupid contributor Aditya Raghunath does not have a position in any of the shares mentioned.

Better Buy: Tesla vs Green Power

https://www.fool.ca/2021/02/01/better-buy-tesla-vs-greenpower/ Better Buy: Tesla vs Green Power

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