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South China Morning Post
11 hours ago
- Automotive
- South China Morning Post
BYD expands car-carrier fleet, Tesla's Robotaxi vs Baidu's Apollo Go: 7 EV reads
We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider subscribing BYD, the world's largest electric vehicle (EV) maker, has taken delivery of two new car-carrying ships – the largest yet in a growing fleet – as it bets on export growth to counter brutal competition at home. Chinese smartphone and car maker Xiaomi has moved up the launch of its latest electric vehicle model amid strong consumer interest in the SUV, which is seen as a potential challenger to the dominance of Tesla's Model Y. Visitors look at a display at the booth of SemiDrive Technology at the 2023 Shanghai Auto Show. Chinese automotive chip firm SemiDrive will start supplying its cockpit system-on-a-chip (SoC) to an undisclosed European carmaker late next year, marking its first collaboration on the continent to push for global sales, a senior executive said.
Yahoo
17-05-2025
- Automotive
- Yahoo
Tesla Started the Ball Rolling and It Could Mean a 9,000% Growth Driver for These 3 Dividend Stocks
Tesla essentially created the electric vehicle industry, forcing combustion engine automakers to adapt. The growth of EVs is expected to create a 9,000% increase in demand for electricity from EVs. Big beneficiaries will be utilities like high-yield dividend stocks NextEra Energy, Black Hills, and Dominion Energy. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) is a polarizing stock thanks partly to its larger-than-life CEO, Elon Musk. But Musk's theatrical flare literally helped to create the electric vehicle (EV) industry. Now, with almost every major automaker building EVs, there's going to be a secondary growth effect in a sector known for being boring and reliable. Here's what you need to know and why you might want to buy these three dividend stocks. Between 2000 and 2020, demand for electricity was modest, growing only 9%. That's not an annualized figure, it is the growth in demand over that entire 20-year period. There were a number of large and important trends over that period that caused this long lull in demand, most notably being the effort to reduce energy consumption through energy-efficient products. LED light bulbs are the most obvious example for most consumers, but a similar process was taking place throughout the industrial economy as well. But the efficiency effort has largely played out and the effort to use cleaner technologies is still working through society. That includes replacing older, dirtier tech with cleaner, newer tech. The prime example here is electric vehicles replacing internal combustion engine (ICE) vehicles. And that process was basically started by Elon Musk and Tesla. He proved that EVs could be a real competitor to ICE vehicles. Now, just about every major automaker is building EVs and there are a number of material start-ups doing the same. This should dramatically increase electricity demand, further fueled by the rapid growth of artificial intelligence (AI). Between 2020 and 2040, electricity demand is projected to increase by 55%. That's six times the increase in demand between 2000 and 2020. The growth is going to be driven in the near term by AI, which is expected to see an increase in demand of 300% over 10 years. The longer term is expected to be driven by EVs, which are projected to see an increase in electricity demand of 9,000% by 2050, a truly massive figure. The demand increase for electric utilities isn't going to be a one-time event. It is going to be a years-long process that will require significant capital investment and lead to growth in what has been a fairly boring sector for a long time. Given that demand is leading the growth, regulators are highly likely to approve the needed capital investments and rate requests from regulated electric utilities. This is fabulous news for conservative income investors. For those with a dividend growth approach, NextEra Energy (NYSE: NEE) is probably going to be the best choice. The utility has a 3.2% dividend yield backed by 31 annual dividend increases. However, the big story here is that the dividend has increased at a roughly 10% annualized clip over the past decade, with management expecting to maintain that rate for the foreseeable future. The company is actually two businesses in one, with the foundation built upon its regulated utility operations in Florida and the growth coming from its large renewable power operations. For truly conservative investors who prefer higher-yielding fare, Black Hills (NYSE: BKH) might be the better pick. This electric and natural gas utility is fairly small, with a market cap of just $4 billion (for reference, NextEra Energy's market cap is over $140 billion). However, it is one of the few utilities that has managed to achieve Dividend King status, with its 55 annual dividend increases. Add in a fairly high dividend yield of 4.6%, compared to the utility average of 2.9%, and you can see why income-focused investors might like Black Hills. That said, dividend growth is likely to be more modest than what NextEra Energy can offer, with Black Hills calling for earnings to advance 4% to 6% a year and dividends rising at about the same rate. A solid turnaround story in the utility space, for investors who are a bit more aggressive, is Dominion Energy (NYSE: D). This company has spent years slimming down its business to the point where it is now a pure-play electricity provider. That said, the process included a dividend cut and a current focus on strengthening the balance sheet and reducing the payout ratio so that it is in line with the industry average. In other words, no dividend growth for a little while. But that's made up for by the lofty 4.9% dividend yield. And, once the payout ratio is worked down, dividend growth is likely to start up again. It's a fairly low-risk turnaround story for investors who are happy to collect an above-average yield while they wait for better days. The growth of the EV market, jump-started by Tesla, is expected to create a step change in demand for regulated utilities. That will change them from sleepy businesses to faster-growing and more attractive investments, with a notable dividend component in the mix. There are opportunities throughout the sector, but NextEra Energy stands out on the dividend growth front, Black Hills for dividend reliability, and Dominion Energy when it comes to its turnaround appeal. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 12, 2025 Reuben Gregg Brewer has positions in Black Hills and Dominion Energy. The Motley Fool has positions in and recommends NextEra Energy and Tesla. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. Tesla Started the Ball Rolling and It Could Mean a 9,000% Growth Driver for These 3 Dividend Stocks was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
09-05-2025
- Automotive
- Globe and Mail
Should You Buy Nio While It's Below Its IPO Price?
Nio (NYSE: NIO), a leading maker of electric vehicles in China, went public at $6.26 per ADR on Sept. 12, 2018. On Feb. 9, 2021, its stock closed at a record high of $62.84. Its shares surged more than 10-fold as it dazzled investors with its explosive growth rates. But today, Nio's stock trades at about $4. It tumbled as investors fretted over its slowing deliveries, declining vehicle margins, persistent losses, and the rising tariffs on Chinese EVs. So should investors accumulate the stock while it's languishing far below its IPO price? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » What sets Nio apart from other Chinese EV makers? Nio sells a wide range of electric sedans and SUVs. It differentiates itself from its Chinese competitors in three ways. First, its vehicles run on removable batteries, which can be quickly swapped out across its own network of battery swapping stations. That makes its vehicles appealing to drivers who hate waiting for their vehicles to charge. Second, it's expanding into Europe to gradually curb its dependence on the Chinese market. Lastly, it sells both high-end premium vehicles (its ET-series sedans) as well as low-end ones (its Onvo SUV and Firefly compact cars). That mix helps it reach a broader range of drivers. How fast is Nio growing? Nio's annual deliveries more than doubled in both 2020 and 2021. However, its deliveries only increased 34% in 2022 and 31% in 2023. It attributed that slowdown to tougher competition, supply chain disruptions, adverse weather conditions, and China's economic slowdown. Its vehicle margin also dropped from a peak of 20.2% in 2021 to 9.5% in 2023. But in 2024, Nio's deliveries climbed 39% to 221,970 vehicles as its vehicle margin rose to 12.3%. That acceleration was driven by stronger sales of its flagship ET-series sedans and Onvo SUVs in China, market share gains, and ongoing expansion into Europe. Nio hasn't posted its full first-quarter earnings report or provided any exact guidance for 2025. However, its deliveries grew 44.5% year over year to 65,994 vehicles through the end of April. That growth was driven by brisk sales of its core Nio vehicles, its new Onvo L60, which closely resembles Tesla 's (NASDAQ: TSLA) Model Y; and the initial deliveries of its new Firefly compact cars, which target interest in smaller vehicles like Smart cars and BMW 's Mini. Its margins are also improving as it sells more of its higher-margin premium vehicles. Is Nio undervalued right now? For the full year, analysts expect Nio's revenue to rise 39% to 91.1 billion yuan ($12.5 billion) as it narrows its net loss from 22.7 billion yuan to 16.4 billion yuan ($2.3 billion). With an enterprise value of 77 billion yuan ($10.6 billion), Nio trades at less than one times this year's sales. By comparison, Tesla still trades at nearly nine times this year's sales. Therefore, any good news could force investors to revalue Nio and drive its stock higher. Nio's potential near-term catalysts include a trade deal between the U.S. and China, the EU replacing its tariffs against Chinese EVs with minimum price limits, and its rumored plans to sell a controlling stake in Nio Power (its lower-margin battery division) to the battery giant CATL. But the bulls probably won't rush back until a few of those green shoots appear. Unless that happens, Nio's steep losses and high debt-to-equity ratio of 15.5 could keep it far below its IPO price. That said, investors who expect Nio to outlast its competitors and successfully scale up its business over the next few years should still consider its deep decline to be a golden buying opportunity. Should you invest $1,000 in Nio right now? Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor 's total average return is909% — a market-crushing outperformance compared to162%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025
