The 2021 United Nations Climate Change Conference, also known as COP26, is the 26th United Nations Climate Change conference. And it’s increasingly being seen as a potential game-changer for major asset classes as the research foundation grows pointing to the need for more aggressive action from wealthy nations to curb emissions and transition to a net carbon neutral footprint for major industries around the world to avoid disaster.
A recent research piece from Bank of America notes that “COP26 will be the tipping point of the race to reach net zero emissions”.
The report notes that absolute water scarcity is likely for1.8bn people, 100mn face poverty, and 800mn are at risk from rising sea levels by 2025. Furthermore, climate migration could reach 143mn from emerging markets, driven by extreme weather. That’s the bad news.
However, the good news – for investors – is that, at the same time, $5tn of annual investments, $2tn of R&D, 42mn green economy jobs, and a cleaner planet “could generate an unprecedented global opportunity”.
Mark your calendar: COP26 is scheduled to happen in Glasgow, Scotland, from October 31 and November 12. We could see capital begin to flow toward names that stand to benefit from fresh edicts in major economies to drive further investments in key areas.
One area that could benefit most from the event is the electric vehicle space. With that in mind, we take a look below at a selection of the most interesting names in the space, along with some key catalysts defining the action.
Tesla Inc (NASDAQ:TSLA) is certainly the most well-known name in the EV space. Its founder, Elon Musk, is almost synonymous with the leading edge of the sector’s driving mission and technology. Shares of the company have powered higher over the past two years much to the chagrin of bears and short sellers continuously trapped in skepticism about valuation concerns.
The company engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The company operates through its Automotive and Energy Generation and Storage segments.
Tesla Inc (NASDAQ:TSLA) recently announced that it produced approximately 238,000 vehicles and delivered over 240,000 vehicles during its fiscal third quarter, which surpassed analyst expectations.
In the company’s release, officials noted, “We would like to thank our customers for their patience as we work through global supply chain and logistics challenges…Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.”
And the stock has been acting well over recent days, up something like 4% in that time. Shares of the stock have powered higher over the past month, rallying roughly 7% in that time on strong overall action.
Tesla Inc (NASDAQ:TSLA) managed to rope in revenues totaling $12B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 98.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($16.6B against $16.4B).
KULR Technology Group Inc (NYSEAMERICAN:KULR) could be the most interesting name in the EV and L-Ion space given the relative lack of competition the company has as it moves fully into commercial-stage operations in a unique niche as perhaps the leading-edge publicly traded play on EV battery safety.
The company has also earned massive credibility with its 30-year history tied to carbon fiber thermal energy management technology for aerospace and defense applications. KULR has already built custom heat management technology for two NASA JPL space missions (Mars Perseverance Rover and the mission to put a human back on the Moon’s surface by 2025) and its tech is currently in use on the International Space Station. KULR has also already won over 30 NASA contracts, and has inked deals with the DoT and USAF.
KULR Technology Group Inc (NYSEAMERICAN:KULR) also recently announced, alongside its new partner, Heritage Battery Recycling, that it has expanded its safe battery transportation market share as a result of HBR’s merger with Retriev Technologies.
According to the release, this combination will create the largest lithium-ion battery recycler in North America.
In addition to the existing partnership’s customer programs in the e-bike and scooter markets, KULR will also provide safe transportation logistics to Retriev’s battery collection operations across North America. Retriev will serve the entire battery lifecycle – from pickup and transportation to critical material recovery and reuse.
KULR Technology Group Inc (NYSEAMERICAN:KULR) CEO Michael Mo added, “Heritage’s merger with Retriev expands our already large recycling footprint within North America and provides a safe and cost-effective solution for their customers to store and transport lithium batteries for recycling. We are proud to provide our space-proven thermal solutions to Retriev and their customers, with the aligned goal of helping provide a safer and cleaner environment for everyone.”
Blink Charging Co (NASDAQ:BLNK) engages in the operation and provision of electric vehicle, charging equipment, and networked EV charging services.
Its product line and services include Blink EV charging network, charging equipment, also known as electric vehicle supply equipment, and EV charging services.
Blink Charging Co (NASDAQ:BLNK) recently announced the expansion of its BlueLA electric car sharing program serving Los Angeles. Following a Los Angeles City Council vote approving the expansion, Blink will add 300 street side EV charging stations at an anticipated 60 destinations across the city and a progressive increase in the Program’s electric vehicle fleet, based on utilization rates.
“We’re very pleased to expand our exclusive car sharing and EV charging agreement with the city of Los Angeles. The program further reinforces our commitment to providing affordable electric vehicle accessibility and EV charging infrastructure to underserved communities across the city,” stated Michael D. Farkas, Chief Executive Officer of Blink Charging.
And the stock has been acting well over recent days, up something like 8% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -3%.
Blink Charging Co (NASDAQ:BLNK) managed to rope in revenues totaling $4.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 176.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($195.6M against $10.8M).
Other key names in the EV space include Nio Inc – ADR (NYSE:NIO), BYD Company ADR (OTCMKTS:BYDDY), Workhorse Group Inc (NASDAQ:WKHS), Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT), and Quantumscape Corp (NYSE:QS).
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