Up over 250% already in 2020, Tesla Inc.’s (NASDAQ: TSLA) stock has been going absolutely crazy this year.
Is it overvalued? (HINT: Yes)
And will Tesla’s upcoming stock split, set for August 31, change anything? (HINT: No)
Let’s take a look…
[finviz ticker=TSLA]The company’s $290 billion market cap is more than 3X larger than Ford, GM, Chrysler (the three largest U.S. car manufacturers) combined.
Meanwhile, these companies sold over 20X more cars than Tesla in 2019 (7.5 million for the “Big Three” vs 367,500 for Tesla).
Both of these facts indicate a share price that is way higher than it should be.
Don’t believe me? Take it from co-founder, Elon Musk himself.
“Tesla stock price is too high imo”, he tweeted on May 1st (imo means “in my opinion”).
Shares were up 77% on the year the day prior to Musk’s tweet. Now, they’re up an astounding 260%, costing you over $1,500 for a single share.
To counter such a high cost of entry, the company just announced a 5-to-1 stock split. This means that if you own 100 shares of TSLA before the split, you’ll own 500 shares at 1/5 the price (roughly $300) after the split.
This stock split changes absolutely nothing about Tesla’s underlying business fundamentally. If you buy $10,000 worth of TSLA right before the split, you’re still going to own $10,000 worth of the stock after the split.
Here’s what what you should do instead…
2 EV Stocks with Much-Higher Upside Than Tesla (Bonus)
Let’s say you do buy one share of TSLA after the stock split for $300 per share…
What is the highest its share price could go?
It’s already trading at 3X the valuation of the three largest U.S. car manufacturers.
Do we really think that it will ever sell more cars than those three companies? Maybe… if absolutely no competitors entered the marketplace.
But EV companies are popping up at an astounding rate. And those companies give investors way more upside than Tesla, who has already priced in the upcoming surge in the EV market.
The non-gasoline car industry is a market that could surge up to 90,900% in the coming years.
And these 2 companies, not Tesla, are the ones whose share prices have the most room to run.
No 2: Workhorse Group Inc. (NASDAQ: WKHS) – Up 402% YTD
Workhorse Group Inc. (NASDAQ: WKHS) is an American technology company based in Cincinnati, Ohio.
[finviz ticker=WKHS]The company designs, develops, manufactures and sells high-performance pickup trucks and vans with power-train components under the Workhorse chassis brand.
Its powertrain products include E-GEN and E-100.
E-GEN is an electric drive, transmission-free system, which has a gasoline/propane or compressed natural gas (CNG) engine that functions as an auxiliary generator.
E-100, an all-electric, medium-duty truck, is an electric power train. The company generates most of its revenue from sales of any of its E-GEN or E-100 platforms.
Last month, shares of Workhorse Group Inc. jumped nearly 20% in one day after the company announced a $70 million securities purchase agreement from HT Investments MA, LLC.
That’s how quickly this stock can appreciate, with something as relatively small as a $70 million deal.
Workhorse will use the proceeds from the sale of the notes to finance the production of its trucks and for general corporate purposes.
And if the company’s trucks are successful, the stock will likely skyrocket.
From $3 per share on Jan. 2, to $15.40 today, WKHS is up 402% so far in 2020.
And its market cap is only $1.6 billion.
That means the stock could increase 90X and still only be worth half of TSLA…
No 1: NIO Inc. (NYSE: NIO) – The “Tesla of China”
Headquartered in Shanghai, NIO Inc. (NYSE: NIO) is China’s largest electric automobile manufacturer. That’s why it trades as an American depositary receipt (ADR) on the New York Stock Exchange.
[finviz ticker=NIO]NIO operates in China’s premium electric vehicle market and was founded in 2014 by William Li, the Chairman of Bitauto and NextEV.
The company designs, manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.
NIO sells vehicles through its own sales network, including NIO Houses, NIO Spaces, and their mobile application.
Its SUV model include the ES8, ES6, and EC6, which range in price from $50,000 to $100,000 (similar to Tesla’s offerings).
The majority of NIO’s revenue is earned from selling SUVs, but the company also sells its EP9 supercar $1.5 million apiece.
NIO builds electric supercars to compete in the FIA Formula E Championship – the first single-seat, all-electric racing series.
NIO’s early investors include Chinese giants like Tencent, Baidu, Lenovo, and even the American venture capital firm Sequoia.
So far in 2020, NIO is up 249% – to $13.40 per share.
And since its market cap is only $16 billion, that leaves the company with plenty of room to grow to my $30 price target.
This represents a potential 124% gain from current levels.
BONUS: The “Tesla Killer” launches 90,900% market surge
I’m here 3,000 miles from home in Long Beach, California.
This industrial suburb looks nothing like Silicon Valley, but recently it’s become the epicenter of an explosive new technology.
One that’s taking the $2.5 trillion electric vehicle market by storm.
It charges in just minutes — not hours. It’s 100% emission-free, costs next to nothing, and involves no fossil fuels. The only thing it emits is pure, clean water.
This is why experts call this technology the “Tesla Killer.”
I came here to try it for myself and see if all these claims were true.
And incredibly enough, the “Tesla Killer” worked better than I imagined.
The car took moments to fill and drove like a dream along the California coast, lasting hundreds of miles.
I’m now certain that no Tesla could possibly compete with it.
That’s why Bloomberg projects it to “skyrocket 1,000 times over.” And best of all…
The tiny, little-known stock behind the “Tesla Killer” are trades for just a few bucks.
Don’t wait another moment.
Now you can lock in its shares at a few dollars, instead of $300 like Tesla.
