The electric vehicle market has attracted significant enthusiasm over the past few years. There are a few solid options on the TSX for Canadians seeking exposure to this space. Facedrive (TSXV:FD) is a stock that has enjoyed huge growth on the back of lofty expectations. Can it hope to meet them?
Facedrive is an Ontario-based ride-sharing company. Most Canadians will be very familiar with the dominant players in the ride-sharing space: Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT). Facedrive aims to capture consumers who are hungry for a domestic investment. It has also attracted attention for its foray into the electric vehicle market.
In March, Facedrive launched Steer. Facedrive acquired the Washington-based vehicle subscription service in September 2020. This stirred interest in the TSX stock, but it really started to erupt in January and February of this year. Its shares soared to an all-time high of $60 before retreating just as quickly. The stock closed at $16.30 on April 29.
On April 21, the company achieved a record daily high in daily delivery volumes. Its ride-share food delivery service is now operational in 19 Canadian cities. These services have experienced a huge spike in usage during the COVID-19 pandemic.
Facedrive ticks a lot of the boxes for investors looking for growth. However, you should be cautious with this stock. It is a long way from profitability and exists in an intensely competitive environment. Uber and Lyft have dominant name recognition, and both are also incorporating EV alternatives. I’m looking elsewhere for my EV fix on the TSX.
