18. February 2021 | 10:40 CET
NIO, Rock Tech Lithium, Volkswagen: Forget hydrogen!
The pandemic shows it: humans are social creatures who long for their loved ones and want to experience something in good company. Mobility is the key to this. In the face of climate change and air pollution, electric cars are an obvious solution. But if you look at the stock market, you might think that hydrogen has now overtaken e-mobility. But that is by no means the case. Hydrogen still struggles with lower efficiency and is probably primarily suitable for large energy storage systems or ships. For passenger cars, the advantages of classic electric vehicles with batteries currently outweigh the disadvantages.
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ISIN: CA77273P2017 , US62914V1061 , DE0007664039
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
NIO: Rollercoaster share at the crossroads
The Chinese e-car manufacturer NIO is also convinced of this. Just a few weeks ago, the Company unveiled new models and triggered hype on the stock market. Over a year, the share price has risen by more than 1,200%. The fact that slight losses have been recorded over the past few days should therefore not unsettle investors. Consolidations are bound to occur on the stock market. It is only essential that investors expect these consolidations and position themselves accordingly.
Since the NIO share has recently faced headwinds beyond EUR 50, this area is now considered a resistance zone. Given the rapid price development in recent months, investors who are still on the sidelines could initially wait for lower prices - one cannot rule out that the stock will once again return to the EUR 40-45 range. However, investors must keep in mind that NIO is a dynamic Company that currently seems to be planning an expansion into Europe and the United States. If the deal is completed, new highs are possible. NIO shareholders are presently on a roller coaster. The ride continues, and a sinking feeling in the stomach area is not excluded.
Rock Tech Lithium: Value creation for Germany
The sinking feelings should already have faded for shareholders of the budding lithium producer Rock Tech Lithium. Investors may already be excited about what the value brings next. Why? The share has made its correction, but still made a return of more than 400% over the past three months. Rock Tech Lithium is poised to become a major German-Canadian lithium producer with good ties to the auto industry. The Company intends to cover a whole section of the value chain around lithium. The raw material is to be mined in the Canadian province of Ontario from 2023. The deposit is promising and connected to the road network. These are good prerequisites for low-cost production.
In the next step, Rock Tech Lithium wants to process the mined raw material in Canada and produce lithium sulfate. In the third step, at a plant in Saxony-Anhalt, the Company will make lithium hydroxide from this, which is the basic material for battery factories. The refining will take place in Europe, giving a clear signal: Rock Tech Lithium wants to supply the European automotive industry with lithium for the mobility revolution. Within the industry, the dice seem to have finally been cast in the direction of electromobility.
If you look at traditional carmakers, such as Volkswagen, you can already see where the journey is heading. Many models are already e-cars. Rock Tech Lithium has a promising deposit and uses innovative processes for further processing and has even filed its own patents. As the lithium price has been picking up for months, the Company could be entering the home stretch towards production at the right time. Shareholders should keep the stock on their radar after the recent correction.
Volkswagen: Solid stock for conservative investors
Volkswagen shares could also be of interest to investors who tend to back standard stocks in safe waters. The Company has already developed its model range in the direction of e-mobility. The diesel scandal, which is now years old, may have indirectly given the Company an edge over the competition.
Also, Volkswagen traditionally has a good standing in China and is a hot brand. The most recent figures from Wolfsburg were still under the pandemic's impression, but they were okay on balance. In addition, the global corporation has an excellent financial position and is moderately valued. Those who are not looking for a high-flyer in their portfolio can consider VW. If you are looking for rapid growth and want to spice up your portfolio with a future stock, you should take a look at Rock Tech Lithium.