It’s been an insane year for investors of Tesla (NASDAQ:TSLA), or indeed those even just watching from the sidelines. Tesla stock went from one of the best-performing to practically one of the worst-performing over the last year.
But if you’re hoping for sustained growth, I’m not sure you’ll get it from Tesla stock. Which is why we’re going to look at what’s been affecting the stock, and where to look instead.
What happened
There are many reasons the share price of Tesla stock rose and fell in the last year. For instance, Tesla fell short of analyst expectations for vehicle deliveries in the past year. This was compounded by inflation and supply-chain issues, leading to Tesla stock reducing the price per vehicle.
What’s more, the company hasn’t really been innovating in the space as much as they have in the past. Add to this CEO Elon Musk’s outgoing personality, and there have been many reasons to see the stock fall.
However, shares recently rose for a few reasons as well. This included penetration in China, as well as the company’s introduction of a fully automated vehicle. Given the company’s renown for product innovation, investors were excited about the news.
That being said, any news seems to cause the price to fluctuate. So if you want in on a strong stock just as hot as Tesla stock, then this is one to consider.
NFI stock
Yes, not as exciting. Except when you consider the company’s recent growth and outlook. NFI Group (TSX:NFI) has been producing battery and fuel cell electric buses for over a decade. They have a global presence and a large production capacity.
NFI recently saw an 18% jump in share price after earnings. The company shrunk its net loss of US$9.4 million in the first quarter, with revenue coming in at US$722.7 million. That was an almost 38% increase from the same time last year.
Much of this revenue came from transit buses, bringing in US$449.5 million in revenue, a whopping 66% increase. What’s more, the company announced that deliveries of zero-emission buses and coaches were up more than 21% in the first quarter. But more is on the way.
More growth to come
Soon after earnings, the company announced it was awarded a contract for up to 1,300 new transit buses in New Jersey. This would be yet another surge in revenue for the company, increasing its backlog even further.
So now, shares are up a whopping 69% in the last year. Yet, it still trades at just 11.1 times earnings and 2 times book value. So, it’s well within value territory. Compare that to Tesla stock, with shares down 2% in the last year, and down even further by 41% since 52-week highs.
With that in mind, forget the hype. Instead, consider a rising star in the electric vehicle field – one that is just as hot as Tesla stock, but with far less hype.
