The electric vehicle (EV) market has got off to a strong start in the 2020s. Investors should continue to
have optimism about this industry going forward. Today, I want to discuss one EV stock that sank to a
52-week low this past month. Is it worth snatching up on the dip? Let’s jump in.
Earlier this year, Fortune Business Insights released a report on the state of the electric vehicle market
and made forecasts on its future. Fortune Business estimated that the global electric vehicle market was
valued at US$246 billion in 2020. It projected that this market would grow from US$287 billion in 2021
to a whopping US$1.31 trillion by 2028. That would represent a tasty CAGR of 24.3% over the forecast
period.
Lion Electric (TSX:LEV) is a Montreal-based company that designs, develops, manufactures, and
distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. Its shares
sank to a 52-week low of $3.25 in October. The stock is down 69% in 2022 as of close on October 28.
This company released its second quarter fiscal 2022 results on August 5. It delivered 44 more vehicles
than the previous year at 105 in Q2 2022. Meanwhile, revenues rose to $29.5 million compared to $16.7
million in the second quarter of fiscal 2021.
Shares of this EV stock is trading in very favourable value territory compared to its industry peers. It just
achieved profitability and is geared up for strong revenue growth going forward. I’m looking to snatch
up Lion Electric on the dip before we move into November.
