Xpev Blnk And Tsla Are Top For Value Growth And Performance Respectively
The electric auto industry is composed of companies focused on the manufacture of electric cars, trucks, vans, and commercial vehicles, as well as companies that offer electric automobile parts and services. Though some traditional automakers also produce electric vehicles , this article focuses on companies considered to be largely pure-play EV manufacturers. The electric car industry is young and growing quickly. Tesla Inc. is one of the more familiar names, but there are others, such as Workhorse Group Inc. and Arcimoto Inc.
Inflation and rising interest rates are creating a difficult operating environment for EV manufacturers. Widespread shortages are pushing up the costs of raw materials, which is weighing on earnings. Higher interest rates are making the cost of capital more expensive for an industry that is highly capital-intensive.
Electric car stocks, represented by the KraneShares Electric Vehicle and Future Mobility ETF , have performed on par with the broader market over the past year. KARS has provided a total return of -13.2% over the past 12 months, not too far below the Russell 1000’s total return of -7.1%. These market-performance numbers and all statistics in the tables below are as of Aug. 5, 2022.
Below, we look at the top three electric car stocks with the best value, the fastest growth, and the best performance, respectively.
Best Electric Vehicle Stocks To Watch: Tesla Lucid Motors And 3 More Ev Stocks
As demand for electric vehicles continues to grow, analysts anticipate that they will overtake global market share from traditional vehicles by the year 2040. All major traditional automakers, along with a slew of startups, have shifted their focus to building electric vehicles, ranging from sedans to SUVs to school buses.Research reports have suggested that the electric vehicle market will grow from $200 billion today to as high as $830 billion by 2030, representing a compounded growth rate of nearly 20% annually. Periodic surges in fuel costs for traditional vehicles is expected to increasingly push consumers to switch over to plug-in and hybrid vehicles.The growing surge in electric vehicles represents a rapid growth industry that investors should keep their eye on. Here are five stocks to watch as electric vehicles grow over the coming decade:
1. Tesla
The first publicly traded, and most well known automaker, Tesla has grown from a market cap of just $1 billion at its 2010 IPO to nearly $200 billion today. Early investors in Tesla have experienced gains of more than 5,000%. The electric automaker now has a market cap that is larger than all other major automakers combined.
Shares of Tesla trade on the NASDAQ under the ticker symbol TSLA.
2. Lucid Motors
The company has also opened a number of showrooms across North America as it aims to increase its production rate to more than 500,000 vehicles globally by the end of the decade.
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EV Technology Group (OTCMKTS: EVTGF
Ford Gm Stock Trounce The Market In 2021
GM stock has an IBD Composite Rating of 80 and an EPS Rating of 43. Shares rose 4.3% Jan. 3, rebounding above the 10-week line and clearing a trendline, flashing an early entry in a new consolidation. GM stock rallied 40.8% in 2021.
Goldman Sachs named GM stock a top EV stock for 2022. General Motors is spending $35 billion to develop electric and autonomous vehicles through 2025. It aims to launch 30 new EVs around the world by then. Those vehicles will include a brand-new Hummer electric truck and a BrightDrop delivery van. The luxury Cadillac Lyriq electric SUV is due by mid-2022, with a Hummer electric SUV and Silverado pickup electric truck due by early 2023. On Wednesday, GM is set to reveal the Chevy Silverado EV, with Q4 auto sales also on tap.
Ford stock has a Composite Rating of 87 and an EPS Rating of 37. After vaulting above a 16.55 entry from a cup base in late October on earnings, Ford stock consolidated for several weeks. Shares then surged 9.6% on Dec. 10 to a 20-year high. Ford that day announced plans to make 200,000 Mustang Mach-E crossovers in 2023. Ford shares hit a 20-year high Jan. 3, rising 4.8% during the session. They appear poised tokeep climbing on Jan. 4, after Ford said it will build nearly twice as many electric trucks amid hot demand.
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Amara Raja Batteries Ltd
Battery manufacturing companies can be considered the top stock picks for electric vehicle battery manufacturers stocks in India because batteries are the most important part of electric vehicles. Batteries must be replaced at regular intervals, implying that EV battery sales will remain consistent.
Amara Raja Batteries, India’s second-largest battery producer, is planning to open a Lithium-ion battery manufacturing plant soon. In partnership with the Delhi government, the company plans to construct many charging stations. Amara Raja Batteries will be a big player in India’s electric vehicle stocks, making it an ideal stock to keep an eye on.
Price of Amara Raja Batteries Ltd:
PE Ratio : 22.55
Now that you know the list of the top electric vehicle stocks in India with prominent car manufacturers in the EV segment, their current assignments, and anticipated developments. You shouldn’t wait to invest in it! This will cause electrification in the auto industry to recede for the foreseeable future.
Automotive Power Component Stock
Electric cars wont move on their own: they need the proper parts to function.
Because of this, you should do some research and see which automotive companies are making power components for electric cars.
These companies will continue to get more deals and partnerships with electric car manufacturers, increasing their stock values.
In essence, you need an automotive power component for electric cars, so those companies involved in the process will make more money.
They already show signs of stock increases, so it will most likely continue to grow when you consider a shift to electric cars.
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What’s Going On With The Electric Vehicle Industry In India
People have recently begun to recognize the need for electric vehicles in India, a country with alarming emission levels. The sharp increase in public and government participation in sustainable mobility signals the start of India’s green revolution. Higher levels of electric vehicle stock in India and Indian EV component stock for battery manufacturers would result from this fresh capital inflow.
Best Electric Vehicle Stocks To Buy Now
In this article, we will be taking a look at the 11 best electric vehicle stocks to buy now. To skip our detailed analysis of the first six stocks and the electric vehicle sector as a whole, you can go directly to the 5 Best Electric Vehicle Stocks to Buy Now.
With a rapid shift in focus to renewable energy and sustainable use of energy resources, electric vehicles have become more popular over recent years. At first, only new companies like Elon Musk’s Tesla, Inc. were embarking on the challenge to produce EVs, but as the years progressed, many other similar companies have popped up across the world. According to the International Energy Agency’s Global EV Outlook 2022, as of this May, the EV sector grew to the point where global sales of EVs rose to 2 million in the first quarter alone. This represented a 75% increase compared to the first quarter of 2021.
Now, even conventional automobile manufacturing companies such as Ford Motor Company and General Motors Company have begun to develop EVs. The growth of the EV sector has also resulted in large amounts of funds being poured into it. According to Bloomberg, over $4.8 billion was poured into the EV charging industry as of August 2022. About $650 million were invested into the sector by Blackrock, Daimler Truck, and NextEra Energy Resources in the US.
Our Methodology
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The 11 Best Electric Car Stocks For September 2022
Once considered a thing of the future, electric cars have finally made their way to the mainstream.
This new technology will be used to combat climate change and reduce our reliance on fossil fuels.
The best electric car stocks could see rapid growth as the industry booms.
There are many companies around the world that are involved in the production, distribution, and even car transport of electric vehicles.
Weve rounded up the best electric car stocks to add to your portfolio as this industry continues to grow.
The Electric Car Revolution
As awareness of climate change increases and human behaviours transition, consumers may begin to shift their loyalty from internal combustion engines to electric and battery-based technologies. This shift in manufacture and purchasing could help reduce total emissions, thus, cleaning the air and resulting in greener societies. But are we ready for an electric car revolution?
In 2018, it was noted that there were over 5 million electric cars on the road in 2018, a 40% increase from 2017. With companies like Tesla leading the widespread adoption of electric vehicles, this figure is expected to consistently grow until electric cars become more common than cars using petrol and diesel. Many analysts have predicted that it will take around 20 years for this to happen, therefore placing an investment or trade in the right company could result in revolutionary growth in the future.
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Teslas Impact And Current Performance
Tesla is not experiencing a sales boom like Nio, yet its year-over-year came in at a respectable 76%. It kicked off 2021 with its best quarter yet, boasting a substantial increase in order delivery. Though Tesla endures occasional slips in prices, the fact that those who invested a year ago made a 400% profit is undeniable.
Elon Musk is notorious for his media presence, outspokenness and the corresponding effect of both on stock prices. Most recently, his announcement that Tesla would stop accepting Bitcoin due to energy consumption concerns caused a dip in prices.
Yet Tesla has already begun a post-announcement recovery, highlighting its long-term resilience. With solid expectations of continued growth and success, Tesla remains a favorite EV stock to buy now.
Best Ev Stocks To Buy Or Watch
The charts of most EV stocks are under strain. Broadly, both established automakers and startups are a speculative bet on electric vehicles, itself seen as a nascent field. They have suffered as a risk-off sentiment prevails in the current market, and as shortages of key components drag on.
The electric-car stocks below have the best mix of fundamentals and technicals.
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Are Electric Vehicle Stocks A Good Buy
Companies with strong track records of earnings growth and market outperformance that are forming bullish chart patterns are the best candidates for stocks to buy and watch, according to CAN SLIM guidelines.
But most of the new EV stocks have neither. They include Fisker , Canoo , Faraday Future , Lordstown and Xos . In fact, many of these EV startups aren’t producing or delivering electric vehicles yet.
However, two startups have begun selling their first electric vehicles, bringing in revenue. Lucid Motors began deliveries of the Lucid Air, a luxury electric sedan Oct. 30. Rivian Automotive has also started delivering the R1T, an electric pickup, with the R1S SUV due in early 2022.
Meanwhile, Chinese EV stocks like Nio , Xpeng and Li Auto sell tens of thousands of vehicles, but are unprofitable for now. Then there are legacy auto giants like General Motors , Ford and China’s that are transforming into electric-vehicle powerhouses.
Ferrari will launch its first all-electric supercar in 2025, joining the ranks of EV stocks after rejecting the shift to electric vehicles for decades.
Electric Car Stocks: Final Thoughts
EV stocks are very exciting right now.
Electric vehicles are hitting the mainstream, with much of the development happening in China and in the US.
Sustainable transportation has become a must have to combat our global climate crisis.
Electric car stocks have been very successful in the last year, and its likely just the beginning.
As governments around the world continue to encourage low-emissions technology, we can expect to see EV stocks increase in value.
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How To Identify The Best Ev Stocks To Buy Now
One of the best ways to identify good EV stock options is to determine which ones are currently undervalued. When analyzing undervalued stocks, it is important to consider their history and potential along with how they are trending compared to the general market.
Currently, the electric vehicle industry is facing several pressures that are affecting EV companies short-term stock prices but not their long-term value including things like chip shortages. Spotting big-time industry players whose stock drops below average is an excellent way to acquire solid stocks that will produce over time.
Global X Autonomous And Electric Vehicles Etf
An exchange-traded fund is a fund that owns many different stocks. For example, the Global X Autonomous And Electric Vehicles ETF owns shares of Tesla, Ford, Toyota, GM, and dozens more. It also owns companies working on self-driving technology like Google, Microsoft, and Apple.
In general, investors consider ETFs to be safer than buying individual stocks. This is because ETFs diversify your risk across a number of different companies. In other words, youll be protected in the event that one stock drops in price.
As far as the EV industry, it might be a good strategy to go with an ETF. You can buy an EV ETF and hold it until the EV race becomes more mature. In 2-3 years, it might be more obvious who the leaders are than it is today. On that note, there are many more EV ETFs than just the Global X Autonomous And Electric Vehicles ETF. This is just one example.
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Quick Overview About Ev Chargers
First, a quick lesson on EV chargers. We classify EV chargers in three categories: Level 1, Level 2 and DC fast chargers.
- Level 1 chargers: Level 1 chargers use a regular 110-volt outlet like standard home plugs but take longer to charge.
- Level 2 chargers: Level 2 chargers have a higher-power output and use a 240-volt outlet like youd see on a clothes dryer or air conditioner. You can get an electric vehicle charged up in about five hours with this type of charger.
- DC fast chargers: DC fast chargers allow direct current into the battery without converting from alternating current. DCFC uses a 480-volt outlet and charge an electric vehicle in an hour.
The United States has about 43,000 public EV charging stations total, which you can locate by state and around 120,000 charging ports, according to the U.S. Department of Energy data. Most of these are Level 2 chargers.
Current charging infrastructure generally falls into the following categories:
- Public: EV charging stations are located in publicly accessible areas or along highway corridors.
- Workplace: Employees can charge their electric vehicles at work during the workday with these chargers.
- Commercial/fleet: Commercial/fleet charging includes charging for electric fleet vehicles, including municipal/private fleets, car sharing and through transportation network companies.
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The Road To : Battery Factories Supplies
Major automakers want half their vehicle sales to be electric by 2030. As the energy transition quickens, global battery supply will meet only 60% of the expected demand by decades end, Oslo-based Rystad Energy forecasts.
That lends more urgency to the quest for the holy grail a cheaper, simpler, better battery.
Battery technology companies, aiming for both incremental and breakthrough gains, have their task cut out. Car companies continue to invest in new battery plants and technological advances.
In the meantime, electric cars will continue to run on lithium-ion or LFP battery cells for now, with costs likely to spur shifts back and forth.
Some breakthrough battery technologies may be a decade or more away, like solid-state cells. Other promising ones, such as sodium-ion batteries, are closer at hand but come with drawbacks.
The importance of these investments cannot be overstated, said Marius Foss, a Rystad analyst.
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Investing In Electric Car Stocks
The electric car stocks mentioned in this article are available to buy and sell on the stock market for investors that want to hold positions in the long-term.
Alternatively, you can trade on the underlying price movements of these shares through spread bets and CFDs, which we offer on our Next Generation trading platform. This doesn’t require you to take ownership of the asset and you are instead speculating that the price will either rise or fall. You can trade on individual shares or our associated , which allow you to diversify your portfolio with a basket of stocks. Read more about our Driverless Cars basket and our Renewable Energy basket.
The 3 Best Electric Vehicle Stocks To Buy In September
Electric vehicles will eventually dominate the auto sector
- The best electric vehicle stocks to buy are those that give investors exposure to the commercial EV sector
- General Motors EV business is really starting to take off.
- Rivian : Rivian has the backing of tech giants and market-leading electric vehicles.
- Nikola is a first mover in the hydrogen-powered truck sector.
Without a doubt, electric vehicles are the future. Compared to gasoline-fueled autos, theyre cheaper to power and maintain, and of course, EVs are much better for the environment. All of those qualities make them more attractive to consumers and businesses. But perhaps most importantly, governments are putting their considerable weight behind electric vehicles. Moreover, EV makers can make a great deal of money by selling subscriptions to various services, such as security systems, self-driving systems and battery-monitoring devices. Given these points, investors should look for the best electric vehicle stocks to buy.
However, investors need to consider that the consumer EV market is extremely crowded and competitive.
Therefore, I think that the best electric vehicle stocks are those of automakers that have some exposure to the less-competitive commercial EV sector. Other good EV makers are those that have a great deal of money to promote their consumer EVs and firms that have heavyweight partners which can help them develop and market their vehicles.
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