Major market indexes sold off last week on concerns over supply chain disruptions deepening due to economic sanctions placed on Russia. However, EV Tesla (TSLA) and Workhorse Group (WKHS) shares rose last week on soaring crude oil prices. So, let’s go over these names.
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Since the start of the year, the benchmark index has been highly volatile due to decades of high inflation, looming interest rate hikes, and hostility between Ukraine and Russia.
Major stock market indexes sold off last week as Russia showed no interest in reducing its attacks on Ukraine. The S&P 500 lost 1.4%, while the tech-laden Nasdaq lost 3.2%. The possibility of deepening supply disruptions and rising crude oil prices scares investors. Benchmarks Brent and WTI hit multi-year highs on concerns over economic sanctions against Russia, a major oil and gas exporter. This situation has caused many investors to shift their focus to electric vehicle (EV) stocks in anticipation of increasing EV demand. With attractive government policies, global EV sales more than double by 2021, as reported by the International Energy Agency (IEA). And according to a study by Astute Analytica, the global electric vehicle market is expected to generate $72.79 trillion in revenue by 2050, growing at a CAGR of 21.9%.
Leading EV stock Tesla, Inc. (TSLA) and Workhorse Group Inc. (WKHS) jumped last week on investor anticipation that demand for electric vehicles will increase amid rising oil and gas prices. So, we thought it might be wise to add these stocks to someone’s watchlist.
Click here to check our Electric Vehicle Industry Report for 2022
Tesla, Inc. (TSLA)
Renowned EV maker TSLA in Austin, Tex., designs, develops, manufactures, sells, and leases EVs and energy generation and storage systems and offers services related to its sustainable energy products. Its automotive products include Model 3, Y, S, and X, while its energy storage products include Powerwall, Powerpack, and Megapack.
On March 5, 2022, TSLA received the conditional green light for the Gigafactory in Berlin from the state of Brandenburg. The approval is significant because it comes six months after the Gigafactory was supposed to open last summer. The Gigafactory was critical to TSLA in its plans to compete with Volkswagen AG (VWAGY).
TSLA’s total revenue for fiscal year 2021 increased 70.6% year over year to $53.82 billion. The company’s net income attributable to common stockholders increased 665.4% year-on-year to $5.51 billion. Also, that EPS was $4.90, representing a 665.6% year-over-year increase.
Analysts expect TSLA’s EPS and revenue for the quarter ended March 31, 2022, to increase by 140.9% and 69.1%, year-over-year to $2.24 and $17.57 billion, respectively. It topped EPS Street forecasts in each of the last four quarters. And over the past week, the share price has gained 3.5% to close the last trading session at $838.29.
Hardworking Group Inc. (WKHS)
WKHS in Loveland, Ohio, is a technology company focused on providing solutions for the commercial transportation sector. The company manufactures electric delivery trucks and drone systems. Its products include a C-series electric delivery truck and a package delivery plane called the HorseFly. It also offers the Metron telematics system platform, which allows users to track and monitor the performance of their vehicles.
On August 12, 2021, WKHS announced that it had entered a pilot program with the US Department of Agriculture’s Natural Resources Conservation Service to demonstrate its capability to provide small Unmanned Air Systems (sUAS) as a service to support the NRCS effort in Mississippi. WKHS President-Aerospace John Graber said, “Engaging in this pilot agreement with NRCS is the first step in expanding our footprint beyond package delivery and last-mile delivery space.”
For fiscal year 2021, WKHS sales, net of returns, and allowances totaled negative $0.85 million, compared to $1.39 million in the previous year period. The company’s cost of sales increased 913.9% year over year to $132.49 million. In addition, its net loss was $401.34 million, compared to a net profit of $69.77 million in the last year period. Also, the loss per share was $3.12, compared to EPS of $0.70 in the last year period.
For the quarter ended March 31, 2022, WKHS EPS is expected to increase 88.8% year over year to $0.11. The company’s revenue for fiscal year 2023 is expected to increase 555.5% year-on-year to $123.50 million. Over the past week, the share price has gained 21% to close the last trading session at $3.68.
Click here to check our Electric Vehicle Industry Report for 2022
TSLA shares were trading at $839.63 a share as of Monday morning, up $1.34 (+0.16%). This year, the TSLA has fallen -20.55%, compared to the -10.12% gain in the benchmark S&P 500 index during the same period.
Tesla (TSLA) is part of the Entrepreneurs Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.
About the Author: Dipanjan Banchur
Since he was in elementary school, Dipanjan has been interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
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Posts 2 Strong EV Stocks That Rise Amid Market Sells Last Week first appeared in StockNews.com
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