Copyright © 2022 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
One hedge fund sees significant potential in three overlooked EV stocks
Source: petovarga / Shutterstock
It’s impossible for investors not to pay attention to the booming electric vehicle (EV) sector. The fast-growing market has grown significantly since last year. According to data from the International Energy Agency (IEA), EV sales “doubled in 2021 from the previous year to a new record of 6.6 million. Back in 2012, just 120 000 electric cars were sold worldwide. In 2021, more than that many are sold each week. Nearly 10% of global car sales were electric in 2021, four times the market share in 2019.” But one investor isn’t focused on the sector’s leaders like Tesla (NASDAQ:TSLA) and Lucid (NASDAQ:LCID). Israel Englander has just made a big bet on three EV stocks that don’t make as many headlines.
Englander is the founder of Millennium Management, one of the world’s largest alternative asset management firms. Whale Wisdom reports that the hedge fund’s assets under management totaled almost $341 billion as of March 2022. The platform attributes more than $161 billion of that number to managed 13F securities. While its top holdings are exchange-traded funds, the fund has recently added three small-cap EV stocks; REE Automotive (NASDAQ:REE), Beam Global (NASDAQ:BEEM) and Electrameccanica Vehicles (NASDAQ:SOLO).
A few months ago, Englander was focused on different sectors, including oil and biotech. Let’s take a closer look at his recent investments and why these almost unknown EV stocks might be worth watching.
Two of Englander’s new stocks are performing well today. Both SOLO and REE are in the green, up 3.3% and 5% respectively. BEEM is down 2%, most likely on general market volatility. While Electrameccanica Vehicles just announced the appointment of a new finance chief, news of a large hedge fund investment is much more likely to send a stock up. And Millennium Management has made significant investments in all three EV stocks.
All three investments were made on June 29, according to Whale Wisdom. REE stock represents the largest investment of the three, at 3,893,527 with a value of $4,594,361. Next on the list is SOLO, with a purchase of 1,116,375 shares. This makes Millennium Management the second top institutional investor in Electrameccanica Vehicles, second only to Invesco, which owns 3,933,341 shares. The market value of Millennium’s investment is $1,730,381. The fund’s investment in Beam Global, 132,814 shares is significantly smaller than the first two. However, it is important to note that BEEM stock trades at a much higher price per share, more than $14, whereas REE and SOLO both trade at less than $2 apiece. For that reason, the market value of Millennium’s investment, roughly $1,969,631, is larger than that of its stake in SOLO.
As TipRanks lays out, all three EV stocks have positive analyst ratings and bullish price targets. REE pulled into the spotlight amid the EV boom of late 2021 but it has been quietly working hard to make a name for itself in a fast-growing sector. In May 2022, the stock rose on news that the company planned to build an EV plant in the U.K.
“By putting separate motors on each wheel, the company has created a chassis that delivers more power and higher carrying capacity on a smaller footprint without sacrificing performance,” TipRanks reports. “The result is an EV design that can carry more batteries, allowing for more cargo or passengers over longer ranges.”
Beem Global operates in the booming field of EV charging. In early 2022, InvestorPlace contributor Patrick Sanders named it to a list of EV stocks to buy as political focus shifted to EV infrastructure. Eight months later, investments in EV charging have only increased, a trend that is expected to continue as EV demand soars. Electrameccanica Vehicles has struggled throughout 2022 but plenty of experts see it as an overlooked growth stock with plenty of potential for investors who don’t mind some risk. “While certainly a niche producer, Electrameccanica could make up a meaningful slice of the growing market,” reports InvestorPlace contributor Chris MacDonald. Clearly, Englander shares this positive sentiment.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
Article printed from InvestorPlace Media, https://investorplace.com/2022/08/billionaire-israel-englander-is-betting-on-these-3-ev-stocks/.
©2022 InvestorPlace Media, LLC
How to Invest
Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Copyright © 2022 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
Not Yet a Premium Subscriber?