It May Be a Meme, But Arrival Stock Is Actually a Solid Buy
Yet another stock popped this morning thanks to Reddit-based investors. But unlike other meme stocks, Arrival (NASDAQ:ARVL), the company behind ARVL stock, will stand the test of time.
So what exactly does the latest company to go meme-status actually do? Well, Arrival produces commercial electric vehicles, servicing the United Kingdom, United States and beyond.
Arrival’s advantage over other commercial EV companies is its monumental partnership, leading technology and unique production process.
Why You Should Buy This Meme Stock
Arrival is so good that it snagged a partnership originally slated for a former favorite of ours, Workhorse (NASDAQ:WKHS).
In fact, Arrival’s partnership with UPS (NYSE:UPS) came about after the latter tried Workhorse’s vehicles and wasn’t impressed. UPS then moved on to sign a deal with Arrival. The deal involves the parcel delivery company purchasing 10,000 EVs from Arrival through 2024, at which point they have the option to order an additional 10,000 vehicles.
Arrival’s $1.2 billion preorder contract with UPS implies the former is clearly among the top EV producers out there. Otherwise UPS would have continued its search and chosen someone else.
And Arrival will disrupt the industry even more moving forward because of its brilliant technology and production capabilities.
Arrival’s Two Biggest Advantages
As far as the former goes, Arrival benefits from “vertically integrated” technology that allows it to create competitively-advantaged vans with market-leading specifications. All its tech is developed in-house, and it’s configured on top of its “skateboard” platform. Normally, auto makers combine bits and pieces from other companies. Arrival is doing it all.
This vertically integrated technology stack differentiates Arrival’s vans, and in this case, makes it better.
Relative to a Ford (NYSE:F) Transit van, Arrival’s electric vans are have 80% more payload capacity, a 3% sharper turn radius, 7% bigger unit volume and are 5% lighter.
And while competitors are bragging about their 100-mile driving range, but Arrival says their vans can drive over 200 miles per charge.
Arrival’s second significant competitive edge comes from its novel “microfactories.”
These small factories automate production in a fraction of the space of traditional auto factories, and this also makes them faster and more efficient.
Rather than aiming to produce hundreds of thousands of vehicles — Arrival’s factories have lower output — they instead aim to be as efficient, quick and cheap as possible.
Compared to big car factories, Arrival’s microfactories are 95% cheaper, take less time to get up and running (six months versus three years or so), operate faster and can deliver cars more quickly (because they can be strategically located nearly anywhere).
The Bottom Line on Arrival Stock
ARVL may be a meme stock, but Arrival has the best electric vans in the market.
They can also produce and deliver those vans at breakneck speeds and can sell them at highly competitive prices. Their business model also lends itself to superior profit margins.
So, when Arrival stock falls after meme mania leaves it to do its own thing, buy the dip.
That’s why ARVL is one of my favorite growth stocks to buy today.
But it’s just one of my favorite EV vehicle stocks, which represent the cream-of-the-crop when it comes to disruptive technological innovation in electric vehicles. These companies all feature second-to-none management teams and massive long-term potential.
Each of these next-generation mobility stocks could post early-Tesla-like returns, including a secret startup that’s spearheading the self-driving revolution, and a company I consider my EV “sleeper” stock of the decade.
To see my entire lineup of innovative next-generation EV stocks, become a subscriber of Innovation Investor today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.
