Both Nikola (NKLA) and Arrival (ARVL) are companies that are yet to generate sales making it difficult to value these stocks. However, based on estimates, one is trading at a significantly lower valuation and also has more upside potential compared to Wall Street price target estimates. .The electric vehicle (EV) industry is forecast to grow at an annual rate of 21.1% in the next decade. This massive growth will be supported by favorable government policies including subsidies and grants as well as economies of scale and massive institutional investments.
The Global X Autonomous & Electric Vehicles ETF (DRIV) has more than doubled in the last year and is up 18.4% year to date, easily outpacing the S&P 500 which has gained 40% since June 2020.
The EV industry has attracted multiple players due to its rapidly expanding market and here we compare two players in this space that are Nikola (NKLA) and Arrival (ARVL) to see which is a better stock right now.