2 Cleantech Stocks To Buy, 2 To Avoid

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

With the growing concern about climate change, governments across the globe have been taking measures to replace the traditional energy sources with green and sustainable sources. In the United States, president-elect Joe Biden’s plans related to the clean energy industry is raising optimism over the growth prospects of cleantech companies. As a result, the stock markets are significantly rewarding cleantech stocks lately.

However, a cleantech tag doesn’t ensure solid performance for a stock. The cleantech space is becoming overcrowded with many new entrants and many companies are yet to be in a position to benefit from the trend. So, investors should be judicious while picking stocks for riding the cleantech boom.

Tesla, Inc. (TSLA) and NextEra Energy, Inc. (NEE) reported strong third quarter results. With the growing market for Electric Vehicles (EVs) and increasing demand for solar energy and wind energy, these two stocks are well-positioned to continue to see gains based on their expansion and strong revenue performance.

On the other hand, Workhorse Group, Inc. (WKHS) and Sunworks Inc. (SUNW) have been struggling to compete with their peers because of their weak revenues and earnings performance. 

2 Stocks to Buy: Tesla, Inc. (TSLA)

Based in Palo Alto, California, TSLA is a pioneer in the EV market. The company designs, develops, manufactures, and sells EVs, electric vehicle powertrain components, and stationary energy storage systems in the United States, China, Norway, and internationally. TSLA operates in two segments Automotive, and Energy Generation and Storage.

TSLA’s total revenue increased 39.2% year-over-year to $8.8 billion for the third quarter ended September 2020 primarily driven by the growth in automotive. The automotive revenues increased 42.2% year-over-year to $7.6 billion. The company’s operating income increased 210% year-over-year to a record level of $809 million, resulting in a 9.2% operating margin. The energy storage business also reached record deployments of 759 megawatt-hours (MWh) in the third quarter.

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