• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Looking at 4 EV Stocks and Their Charts: Here's My Take

Last week was rather tough across the board for equities. The Autos were different.
By STEPHEN GUILFOYLE
Dec 06, 2021 | 10:35 AM EST
Stocks quotes in this article: XLY, GM, F, TSLA, RIVN, LCID, NKLA, FSR, RIDE, GOEV

Chutes and Ladders. Mostly Chutes... suddenly.

Last week was rather tough across the board for equities. The Autos were no different. Well, that's not true. In fact they were different. While the Consumer Discretionary sector SPDR ETF (XLY) surrendered 2.17% over the five day period, the Dow Jones US Automobiles Index gave up 5.51%.

Even more interestingly, breaking out the firms individually, we find that both General Motors (GM) and Ford Motor  (F) , the legacy automobile manufacturers that still do a large business in vehicles with internal combustion engines, outperformed at -0.8% and -3.1%, respectively. The largely electric vehicles manufacturers, led by Tesla (TSLA) at -6.2%, which is the only one already at a point where it can mass produce and profitably sell vehicles globally and at scale, and who have all perhaps traded at unrealistic valuations... took a literal pasting. Rivian Automotive (RIVN) , whose quiet period following a traditional IPO came to a very loud ending this morning, finished last week -6.7%, while Lucid Group (LCID) finished the week down 8.6%.

Lucid would reveal prior to the opening on Monday morning that the firm had been subpoenaed by the Securities and Exchange Commission on Friday to produce certain documents related to an investigation possibly pertaining to the deal via SPAC that put the automaker together with blank check company Churchill Capital Corp. IV, regarding certain statements and projections in particular. Lucid states that the firm is fully cooperating with the investigation.

Beyond Tesla, Rivian, and Lucid, Nikola (NKLA) , Fisker (FSR) , Lordstown Motors (RIDE) , and Canoo (GOEV) all took beatings of between 9.7% and 16.6% last week. Oh, and news broke on CNBC while I was writing this piece that the SEC has reportedly opened an investigation into Tesla over whistleblower claims related to solar panel defects. 

On Rivian

As far as Wall Street goes, I can find 11 sell-side analysts that have initiated Rivian Automotive on Monday morning. Of the 11, there are eight "buys" or buy equivalents, and three "holds" or hold equivalents. The average target price of the 11 is $133.91, with a high of $170 (John Murphy of Bank of America), and a low of $94 (Mark Delaney of Goldman Sachs). Both Murphy and Delaney are five star rated analysts at TipRanks. Obviously, Delaney is one of the "holds."

Should we omit all analysts not rated at five stars at Tip Ranks, we are left with seven opinions (six buys and one hold), with an average target price of $137.71. Your old buddy Sarge has two favorites among the seven. Alexander Potter of Piper Sandler and Dan Ives at Wedbush. Both are "buys" with target prices of $148 and $130, respectively. Both seem to stress in their notes that Rivian has the best chance to place second to Tesla in terms of market share, while remaining self reliant in the development of both software and battery technology. 

On Lucid

This is a name that I traded out of early last week when I was discussing being "skinny" during these volatile markets going into December 15th. I have been very impressed with CEO Peter Rawlinson, and had every intention of re-entering the name once it sold off a little. This news definitely gives me reason to pause my actions in that regard. I really don't know when I will buy those shares back at this point. 

On Ford

You all know that I have extremely high expectations for Ford Motor going forward. This is the name everyone slept on. This is also the name that set $7B aside for investment in new plants in Tennessee and Kentucky. Ford will be a major player in the transformation from legacy driven vehicles to the electric future. That has been my opinion since CEO Jim Farley took the helm and he has done absolutely nothing to disappoint my faith in him. Plus, Ford sells vehicles that regular people like. Pickup trucks and Mustangs. That's going to matter. Even in an electric world. 

Charts

Readers will note two items here. One, Tesla has built a "double top" reversal as CEO Elon Musk has made a game of having to sell 10% of his stake for tax purposes. While all indicators signal some general weakness, none signal anything that severe. Interestingly, then shares have found repeated support at an almost precise 38.2% Fibonacci retracement of the entire March through early November bull run. Very good chance in my opinion that until there is some kind of an all-clear, either on supply constraints or on the Musk selling spree, this stacks maintains what has become a $972/$1250 range. The shares are trading at the lower bound now. Should that Fib level hold, Tesla could be off on another run into 2022. Failure? $805 is not beyond the pale. In all, I don't think the Dan Ives $1400 price target is unrealistic at all.

Ford Motor continues to build the "bull flag" that I showed you a couple of weeks ago. This, in my opinion, is cause for the weakness in the Full Stochastics Oscillator. My expectation is that this pattern results in an explosive movement. I am set up for that move to be in a northerly direction.

Lucid approaches a 50% retracement of the entire move higher, as well as the 50 day SMA. I don't think I can touch this name until we know more.

Not much of a chart to go off of here. Did you know that if you bought 100 shares of RIVN today, you could probably sell one January 21st RIVN $100 call against the position for about $16. The stock goes higher and you get called away at $100? Okay, you paid a net $84. The stock goes south? You just have to get out before it goes below $84. Worth a thought.

(Ford Motor is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells F? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Stephen Guilfoyle was Long F equity.

TAGS: ETFs | Investing | Markets | Stocks | Technical Analysis | Trading | Automotive | Electric Vehicles

More from Investing

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Treat Becton, Dickinson and Company With Care

Bruce Kamich
Jun 24, 2022 1:25 PM EDT

BDX gets an upgrade, but are the charts healthy enough to recommend?

When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends

Bob Ciura
Jun 24, 2022 1:00 PM EDT

Here's why in recessions and bear markets, the right mega-cap stocks can offer security -- and good yields.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login