Close menu




November 10th, 2021 | 14:09 CET

BYD, Silver Viper, Varta: Is the discount battle for e-cars coming?

  • Electromobility
Photo credits: pixabay.com

Experts, influencers and visionaries often hand out advance praise for years, but new technology often does not make it beyond the hip neighborhoods of Hamburg, Berlin or Munich. It is a different story with electromobility. Of course, anyone who commutes three-digit kilometers a day will still rely on diesel and may even have in mind the possibility of acquiring a modern annual car at a reasonable price in the foreseeable future. However, those who commute up to fifty kilometers and live in more densely populated areas often already opt for an e-car today. Fancy brands, such as Tesla and their affordable Model 3 journey, are doing the rest. We highlight three stocks that stand to benefit from the e-car breakthrough and ask whether the market is facing a discount battle.

time to read: 3 minutes | Author: Nico Popp
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , SILVER VIPER MINER. CORP. | CA8283341029 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:


    Uwe Ahrens, Director, Altech Advanced Materials AG
    "[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG

    Full interview

     

    BYD: How can the breakthrough succeed in Europe?

    About ten years ago, BYD's stock was already seen as a beacon of hope for electromobility. The Chinese Company was still known for its rechargeable batteries and preferably powered small vehicles, scooters or other companions. But the Company has evolved. Today, BYD builds its own cars, has cracked the sound barrier of 1,000 kilometers of range and is coming up trumps, especially in its home market. Recently, more BYD vehicles were sold in China than Tesla. That is also because the Chinese like to be patriotic when it comes to new technology and because BYD is quite competitive in terms of both price and quality - no matter how much Tesla boss Elon Musk ridicules the Chinese.

    Most recently, BYD successfully raised capital in Hong Kong. In October, the 249% increase in vehicle sales to 81,040 cars with electric and hybrid drives may have contributed to investors' buying mood. Measured against the full year, the figures are up significantly, by more than 200%. Because BYD owns its chip division, the Company can make inroads and gain market share during a market period when competitors are suffering from chip supply issues. The stock is up nearly 15% over three months. In the long term, the positive trend is picking up again after a somewhat weaker first half. It would be unthinkable if the BYD brand could also develop a certain charisma in Europe or the USA. However, the breakthrough there can only be achieved through price. While this is good for customers, it is only positive for investors to a limited extent.

    Silver Viper: Anticyclical thinking around the corner

    Silver Viper is a stock benefiting from the boom in electric mobility just as much as from the energy transition. A little more than a month ago, we highlighted the share in this article. Since then, the positive market sentiment initially pushed the value up significantly before the share went back into a slight consolidation. Silver Viper operates the La Virginia Silver Project in Mexico, where it has already unearthed grades of 3.15 g/t gold and 228 g/t silver over 13.13m. Further exploration and a resource estimate update are planned for the coming months. Due to the early stage of exploration work, the stock can leverage the silver price and positive developments around renewable energy.

    Typically, the market values commodity deposits in the ground at a significant discount - after all, some preliminary work is needed before the silver, or other metals are at the surface. How large these valuation discounts have to be, however, is unclear. From minimal discounts to huge markdowns, everything is possible. Anticyclical investors and traders can take advantage of this. Currently, Silver Viper is trading only slightly above its 52-week low. Those who have patience and assume that either rising precious metal prices or the search for shares that have something to do with e-mobility will kiss the value awake can take a closer look at Silver Viper.

    Varta: Doubts remain here

    Varta's stock has long been kissed awake. Unlike Silver Viper, however, the market has already given it more extensive advance praise. And no wonder: While the small silver explorer is a pure growth company, Varta successfully produces batteries. The Company also wants to supply manufacturers of e-cars soon. Since Varta is an established company, the market attaches a much higher probability to these plans than would be the case with small and unknown companies. As a result, if the mood on the market turns or if quiet doubts are raised, there is potential for a setback. That is what happened with the Varta share - hardly anything has happened here over the last year, and in the last three months, the share price has fallen by around 29%. Even analysts have recently become less optimistic.


    To profit from e-mobility or renewable energies, investors should choose companies with prospects. With its battery and chip division and its market position in China, BYD is one such candidate. Investors may become more skeptical if the market, for example, praises Varta, even though it can be difficult for a German battery manufacturer to score internationally. After all, the competition from the Far East is sometimes ahead. Away from the hype, there are also smaller stocks such as Silver Viper. Here, the e-car fantasy only emerges at a second glance, but investors do not have to chase the share price. Suppliers of basic materials may also be largely unaffected by a potential price war.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Stefan Feulner on February 3rd, 2023 | 12:54 CET

    BYD, Power Nickel and Infineon - News drives share prices

    • Mining
    • Nickel
    • Electromobility

    The events are overlapping. In addition to the daily geopolitical news, the central banks are in the spotlight these days. Despite a further interest rate step, the FED sent positive signals to the capital market because the end of the strict monetary policy is approaching. In addition, the reporting season started, which could offer several surprises already at the start. After the price corrections, many companies have opportunities for a sustainable rebound.

    Read

    Commented by Armin Schulz on February 1st, 2023 | 20:22 CET

    Altech Advanced Materials, Mercedes-Benz Group, NIO - Electric mobility on the verge of a revolution

    • Innovations
    • Technology
    • Electromobility

    Electric cars are becoming increasingly popular as a sustainable mode of transportation. As technology improves, this type of vehicle is becoming more attractive to investors looking for an environmentally friendly option. However, some important issues still need to be addressed before electric cars become a natural alternative for most people. Chief issues are battery charging times, limited range, and safety. Today, we look at Altech Advanced Materials, a company that has developed a solution to the problems, and look at the current status of two automakers.

    Read

    Commented by Nico Popp on February 1st, 2023 | 18:14 CET

    Scholz on lithium trip in South America - Who benefits? BYD, Saturn Oil + Gas, American Lithium

    • Mining
    • Oil
    • Lithium
    • Electromobility

    China has been active in South America for years and has put out feelers for raw materials. But first movers are not always rewarded. German Chancellor Olaf Scholz has now been to Chile and made the country an extremely attractive offer. We take a detailed look at what it is all about and how investors can deal with the news.

    Read