Next Tesla (NASDAQ:TSLA)? Why Ballard Power (TSX:BLDP) Has Room to Run

Tesla, Inc. (NASDAQ:TSLA) has been soaring, but the recent pullback in green energy has investors worried. That means one thing: opportunity.

The immense rise of Tesla (NASDAQ: TSLA) after its major expansion in the last several years is nothing short of spectacular. While the stock has seen a pullback in the beginning of the year after its meteoric rise, it’s important to look at how far it’s come. The stock is still up 435% in the last year but 1,585% in the last five years! That’s a compound annual growth rate (CAGR) of 76% as of writing!

The surge in share price has caused a frenzy with any news coming out about Tesla stock. But it’s not just Tesla seeing spectacular growth any more. The immense popularity of green stocks is here, and isn’t going anywhere. That leaves fantastic opportunities for those that get in now.

Green isn’t going away

Although there has been a run followed by a pullback in green stocks, I wouldn’t discount them right away. I do agree that oil and gas stocks are still a great investment for those looking forward to a rebound. However, buying up one doesn’t mean you can’t own the other.

Part of the growth in these green stocks came from President Joe Biden’s announcement his administration would put billions into green energy projects over the next decade. This is on top of other countries also announcing investment, which could total $10 trillion around the world in the next decade.

So, now that there’s a pullback, it’s important not to get fearful. Investors should start looking for strong stocks that will be a necessity to the growth in green energy stocks. That’s why even after the run experienced by Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP), there is still room to grow.

Beat the earnings bump

While short interest in Ballard stock may not have the immense growth of a Tesla stock, I still think that Ballard stock is a strong company to get behind in the green economy. For those willing to see some ups and downs in the short term, in the long run, this stock will pay it forward.

Ballard stock provides fuel cell products to pretty much any type of vehicle. It serves transit bus, automotive, rail, truck, material handling, UAV, marine, and critical infrastructure markets. It operates around the world from China to Canada and basically any where in between. It’s been expanding into other countries, signing on more and more deals with the growth of green energy.

The company had a challenging year from COVID-19 yet still saw fantastic growth. It’s seen immense progress in its corporate growth strategy, achieving a joint venture operation in China, partnering with MAHLE for European commercial trucks and recently partnering with CP Rail for the first hydrogen fuel-cell powered locomotive in North America. The company also plans to reduce fuel cell costs by 70% by 2024, creating a multi-billion-dollar opportunity for Ballard by 2030.

Reduce risk: Just get rewards

Shares are still up 135% for Ballard stock, but that’s after a drop of 38% from the recent pullback. That leaves an incredible opportunity for investors to see a major jump after a rebound in the energy market. Fuel cell companies will be needed in the green economy. That makes Ballard stock a clear winner for any portfolio — even more so than Tesla.

Fool contributor Amy Legate-Wolfe owns shares of Canadian Pacific Railway Limited. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla.

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