It doesn’t have to be just Tesla stock

E.It’s not yet in the electric car boom, but it could soon be. The number of registrations for new cars is rising sharply this year. If they were below 10,000 per month in Germany for years up to January, it was already 40,000 in September. The share of all new vehicles rose from 4 to 15 percent. The increased state funding is helping a lot. Demand is also increasing in other countries.

Anyone who wants to benefit from this as an investor does not have to resort to Tesla shares, probably the best-known stock in the industry. This is difficult because Tesla recently reported a profit for the fifth quarter in a row. The pioneer among battery car manufacturers had never succeeded in doing this before. The share price rose again by 5 percent and has more than quadrupled since January.

But the stock is now also highly valued. A price / earnings ratio of more than 200 smells like a gigantic exaggeration. At least the risk for investors to get in now is very high. It is enough if the growth should turn out a little less – the price can collapse quickly. Especially since the competition for Tesla will get stronger in the coming years: from Europe from established manufacturers, but also from China with the car and battery manufacturer BYD, whose share price has more than tripled this year, but is now also astronomically valued .

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To the detailed view

It is worth taking a look at the other beneficiaries of the electric car boom, the suppliers: charging station operators, battery producers, raw material suppliers and even tire manufacturers. You can also find yourself increasingly on the stock exchange, either as specialists or as part of larger corporations that have other business fields in addition to the electrical division.

A newcomer among them has been on the stock exchange for a few days: Compleo, a developer and manufacturer of charging stations. The Dortmund company was founded in 1948 as a switch cabinet manufacturer EBG. With the new focus, Compleo is growing strongly, after all, the network of charging stations is currently being greatly expanded with state support. In 2019, sales rose by 13 percent, but already doubled in the first half of 2020. Compleo has delivered 25,000 charging stations in the past eleven years, 22,000 of them in Germany. The proceeds from the IPO are to be used to drive expansion in Europe and to expand research.

Compleo Charging Solutions AG

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To the detailed view

The prospects are good because of the strong network expansion, but the competition is fierce. Well-known providers such as ABB, Schneider Electric and Alfen are also vying for orders. The American competitor Chargepoint is also planning an IPO and also wants to expand into Europe. The Compleo IPO was a bit bumpy. The shares were allotted to shareholders at EUR 49, which is in the lower range of the planned price range. The first price was 10 percent lower, then rose slightly, but no longer reached the issue price. However, because of the corona worries, it was also a weak stock market week overall – not a good environment for a new issue.

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