The electric vehicle market has attracted a lot of attention over the past decade, and with good reason. Allied Market Research recently valued the global electric vehicle market at $163 billion in 2020. That same report projects that this market will reach $823 billion by 2030. That would represent a compound annual growth rate (CAGR) of 18% from 2021 through to the end of the forecast period.
With this in mind, I want to look at a TSX stock in this space that has struggled recently. Should you buy the dip?
Lion Electric (TSX:LEV)(NYSE:LEV) is a Montreal-based company that is engaged in the design, development, manufacture, and distribution of purpose-built all-electric medium and heavy-duty urban vehicles in North America. Shares of this TSX stock have dropped 19% in 2023 as of close on March 30. The stock is now down 77% year over year.
This company released its fourth quarter and full year fiscal 2022 earnings on March 10, 2023. In the fourth quarter, Lion Electric saw revenue more than double to $46.8 million while its adjusted EBITDA loss widened to $13.9 million. For the full year, Lion Electric delivered 519 vehicles – up from 196 vehicles delivered in fiscal 2021. Its revenue rose to $139 million compared to $57.7 million in the previous year.
Shares of this TSX stock possess a Relative Strength Index (RSI) of 24. That puts Lion Electric in technically oversold territory at the time of this writing.
