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Tesla vs. Geely: Which Electric Vehicle Manufacturer is a Better Buy?

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This story originally appeared on StockNews

The electric vehicle industry is growing at a rapid pace and as such is attracting the entrance of established manufacturers, such as the China-based Geely (GELYY). But are these new entrants in general, and Geely specifically, be able to threaten Tesla’s (TSLA) leadership position?.

One of the hottest industries in which to invest currently is electric vehicles (EVs). As the globe inches towards clean energy production and consumption, companies within the EV space are  poised to grow at an accelerating pace. 

While 2020 was a breakthrough year for EV stocks, several EV companies have underperformed the market this year, allowing investors to buy growth stocks at more attractive valuations.

Here we compare two popular EV stocks. One is a market leader, Tesla (TSLA), and the other is Geely (GELYY), a company that is domiciled in the country with the world’s largest  EV market—China.

Click here to checkout our Electric Vehicle Industry Report for 2021

Let’s see which stock is a better EV buy right now:

Tesla continues to surprise Wall Street

In the first quarter, Tesla sales were up 74% year over year, driven primarily by a  109% increase  in vehicle deliveries. Its net income also surged to record highs on the back of regulatory credits.

In Q1, Tesla increased deliveries of its low-cost Model 3 and Y by an impressive 140% year over year to 182,338 units. However, deliveries of its  higher-priced Model S and X vehicles were down 83%, at 2,030 units,  in Q1 because Tesla put the production of these vehicles on hold and aims to launch newer versions of the models in coming months.

Tesla reported $438 million in  net income, or $0.93 per share, in the first quarter. This  included a $101 million gain associated with its  sale of Bitcoin. It also reported $518 million in sales of regulatory credits. Tesla bought $1.5 billion worth of digital assets in the quarter. Absent the  above-referenced sales, Tesla would have reported a $181 million loss in  Q1.

Tesla has pumped in $1.35 billion in capital expenditures and began construction in two new factories in Berlin and Texas. Once these projects are complete the company should benefit from positive free cash flows over time.

Even though  Tesla continues to use   unconventional methods to boost  its bottom-line, it remains one of the best stocks in the EV sector. It is on track to increase its vehicle deliveries by more than  50% year over year in 2021. The company’s management also confirmed it has sufficient liquidity to fund its expansion plans without having to raise additional capital.

Geely stock is down 42% from 52-week highs

An investment holding company, Geely operates as an automobile manufacturer in China. It develops , produces, markets, and sells automobiles and  automobile parts and related components. Geely manufacturers sedans, wagons, and sport utility cars.

Geely is an established  automobile manufacturer that  is now eyeing the  lucrative EV space. Earlier this year, China’s tech giant Baidu disclosed that it will partner with Geely Automobiles to manufacture smart EVs. Baidu will provide intelligent driving capabilities while Geely will leverage its design and manufacturing expertise.

But while Tesla is growing its top line at an enviable pace, Geely has seen its sales decline to RMB 92 billion in 2020 from RMB 106.59 billion in 2018. Its EBITDA has also fallen, to RMB 11.83 billion in this period from RMB 17.24 billion.  And Geely’s EBITDA margin has fallen to 12.8% in 2020  from 16.2% in 2018.Geely has attributed the sales decline to China’s weak passenger vehicle market. While its sales volume was down 10% year over year in 2019, it fell by another 6% in 2020. This is in-part why its stock is trading 42% below its 52-week high.

The final takeaway

While Tesla is the largest EV manufacturer in the world, Geely is still trying to gain a foothold in this nascent industry. In terms of valuation, Tesla is trading at a far higher multiple than  Geely. For example, Tesla’s trailing price to sales multiple stands at 20.5x, while Geely is valued at less than two times trailing sales.

But Tesla’s robust revenue forecast and expanding profit margins can support this lofty valuation, making it a better investment bet right now.


TSLA shares . Year-to-date, TSLA has declined -5.97%, versus a 12.45% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditya Raghunath

Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. His work has been published on several digital platforms in the U.S. and Canada, including The Motley Fool, Finscreener, and Market Realist.

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The post Tesla vs. Geely: Which Electric Vehicle Manufacturer is a Better Buy? appeared first on StockNews.com

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The 11 Sectors Of The Stock Market & Their Biggest ETFs

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This story originally appeared on StockMarket

What Are ETFs & Why Should Investors Consider Them?

The stock market is often divided into 11 major sectors representing key areas of the economy. Within each sector, there are a number of different publicly traded stocks that operate in the same broad area. If you’re an investor and want to diversify your portfolio expansively, you’ll then need to own companies across the market. 

In light of that, it’s helpful to know the market categorization for each sector. For instance, if you want to have exposure in specific areas of the economy, an exchange-traded fund (ETF) may be a good place to start. But first, what exactly is an ETF? An ETF is a basket of securities, shares of which are sold on the stock exchange. It has become incredibly popular for both active and passive investors alike. 

With this in mind, let’s take a look at the 11 sector classifications in the order from largest to smallest. In brief, we will see what each sector is about and a few of the largest ETFs that can be used to gain exposure to that particular industry. 

1. Technology

The technology sector consists of businesses revolving around the manufacturing of electronics, software developers, or products and services that are related to information technology. In general, these businesses are driven by upgrade cycles and the general health of the economy, although growth has been robust over the years. To point out, the technology sector is often considered one of the most attractive places to find growth in the stock market.

2. Health Care

An investment in health care is exciting. When you invest in the health care sector, you’re actually investing in a broad range of industries. That’s because the sector consists of biotechnology companies, hospital management firms, medical device manufacturers, and many others. In general, the sector is considered to be both a growth opportunity and defensive play since people will require medical aid in both good and bad times. Since it’s the second-largest industry, it’s nearly impossible to have a diversified portfolio without any health care stocks or ETFs in it.

[Read More] Hot Stocks To Buy Now? 5 Cyclical Stocks To Watch

3. Financials

The financial sector is made up of firms and institutions that provide financial services to both corporate and individual customers. This sector consists of banks, investment funds, and insurance companies, among others. By and large, the majority of the revenue generated by the sector comes from mortgages and loans. Thus, such revenue increases as interest rates rise. The overall health of the economy depends on the strength of its financial sector. In view of the economy rebounding, it may not be a bad idea to have some exposure to some of the financial ETFs below.

4. Real Estate

The real estate sector consists of companies invested in residential, industrial, and retail real estate. Accordingly, the main source of revenue for these companies comes from rent income and real estate capital appreciation. As the economy continues to rebound, there would undoubtedly be opportunities in the real estate sector. Investors love the sector because of its ability to generate healthy dividends along with capital appreciation.

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5. Energy

The energy sector is a category of companies in the business related to the production and supply of energy. The energy sector consists of oil and gas exploration and production companies, as well as integrated power firms, refineries, and other operations. In general, these companies generate revenue that’s tied to the price of crude oil, natural gas, and other commodities. But with the U.S. making combating climate change one of its top priorities, clean energy ETFs have also gained the attention of investors. 

6. Materials 

The materials sector consists of mining, refining, chemical, forestry, and related companies that are focused on discovering and developing raw materials. Since these companies are at the beginning of the supply chain, it’s natural that their activities tend to move along with the economic cycles. Hence, if you think that the economic recovery is well underway, it doesn’t hurt to have some exposure to this cyclical area of the economy.

[Read More] 5 Tech Stocks To Watch In June 2021

7. Consumer Discretionary 

Consumer discretionary is a term to describe goods and services that are deemed non-essential by consumers. To list, this sector consists of retailers, apparel companies, media companies, consumer durables, and consumer service providers. These companies usually benefit from consumers that have extra disposable income to spend, and they may therefore receive a boost with an improving economy.

8. Industrials

The industrials sector consists of construction, machinery, fabrication, manufacturing, defense, and aerospace companies. This industry’s growth is driven by demand for building construction and manufactured products such as agricultural equipment. As a result, the performance of these companies in the industrial sector often moves along with the economic cycles. 

[Read More] Best Cheap Stocks To Buy Now? 4 Consumer Discretionary Stocks In Focus

9. Utilities

The utility sector consists of electric, gas, and water companies as well as integrated providers. In general, many investors treat utilities as long-term holdings and invest in the sector to generate a steady income for their portfolios. It is arguably the most defensive play you can find in the stock market when there is an economic downturn.

10. Consumer Staples

The consumer staples sector consists of food and beverage companies as well as companies that create products consumers deemed essential for everyday use. In general, these companies are defensive plays and are able to maintain stable growth regardless of the broader state of the economy.

11. Telecommunication  

The telecommunication services sector features cable companies, internet service providers, wireless providers, satellite companies, and many more. Consumers are generally providing recurring revenue for these companies, but some subsets of the industry face rapid change. Investing in individual telecom stocks may present higher volatility, but the telecom sector overall has exhibited reasonable long-term growth.

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Michael Jordan Donates $1 Million to Morehouse College Journalism and Sports Program

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NBA legend Michael Jordan announced a $1 million donation to enhance journalism and sports-related studies at Morehouse College.

In the past, the billionaire was criticized for his lack of activism in the Black community. But now he’s stepping up to the plate and changing the narrative for Black students. Jordan’s contributions will support scholarship, technology, and educational programming initiatives for students attending the Atlanta-based HBCU.

“Education is crucial for understanding the Black experience today,” said Michael Jordan in a Morehouse news release. “We want to help people understand the truth of our past, and help tell the stories that will shape our future.”

Jordan Supports the Mission of Morehouse College

In 2014, Jordan became the first billionaire NBA player in history. He’s putting his fortune to work through initiatives that support the Black Community Commitment. In 2020, Michael Jordan and the Jordan Brand committed to providing more social, economic, and educational justice in the Black Community. The donation to Morehouse College is one way that Jordan hopes to expand opportunities for Black men.

“Morehouse is grateful to Michael Jordan and Jordan Brand for an investment in the education of talented men of color who will ensure there is equity, balance, and truth in the way sports stories are framed and the way the Black experience is contextualized within American history,” said Monique Dozier, vice president for institutional advancement at Morehouse.

Founded in 1867, Morehouse is the only private historically Black college or university dedicated to the enrichment of Black men. The school has been at the forefront of addressing a lack of Black leadership in athletics and sports journalism. Spike Lee, a 1979 Morehouse graduated, launched the Journalism and Sports Program. His goal was to open doors for more Black men in media. Now, the program has graduated over 600 students who are transforming the narrative.

“There’s going to be a rich legacy of storytellers who will be supported by these programs,” Spike Lee shared in a news release. “Many people are influenced to think a certain way about Black folks based on what they see on television and in Hollywood. We’ve got to tell our story.”


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3 Ways to Harness your Nervous Energy to Perform Better

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Struggles with stress and anxiety can be frustrating, but have you ever considered anxiety to be a positive thing? 

In her book, Nervous Energy: Harness the Power of Your Anxiety, clinical psychologist Dr. Chloe Carmichael argues that anxiety is actually a positive that can be used to your advantage. Through simple techniques that make you more aware of your emotions, you can become in control of your anxiety and begin to optimize your mental health for more success. I wanted to share with you three ways you can begin to harness your nervous energy to have a happier and more successful career and life. 

As high-achieving individuals, anxiety might seem like something to be ashamed about or to hide, but that couldn’t be further from the truth. The first step to using that anxiety for more success is to acknowledge and embrace it. As Dr. Chloe says, anxiety is actually a healthy function of our brains! Your mind is stimulating preparatory behaviors for what we know will be a stressful event. Once you are able to harness these preparatory impulses effectively, you will find that your anxiety is a plus that will encourage and aid you in your success.


  1. Meditation and Mindfulness

Once you’ve begun to recognize and acknowledge your anxiety, meditation and mindfulness can help you begin to understand it more deeply. Understanding it equips you to soothe your emotions, tackle the stressor, or do whatever needs to be done in order to address the anxiety. By practicing mindfulness and meditation, we are able to listen deeply to our anxiety and what actions it’s calling us to do. Dr. Chloe teaches mindfulness and a few different simple breathing techniques in her book that will help you stay grounded.

Naming your emotions sounds simple, but it might be more difficult than you think. One technique Dr. Chloe suggests is to list out your to-do list for the day, and label each task with the emotion you feel. Knowing what your emotional state will be during each activity can help you prepare effectively for the event, and is a great way to channel those anxious feelings into tangible actions. 

As busy entrepreneurs with fast paced lives, we may be prone to only see how our anxiety and stress holds us back– and overlook the secret of how it can actually propel us forward. I challenge you to see anxiety as a potential superpower that, when harnessed correctly, can drive you to do bigger and better things than ever before. 

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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