Do You Have These Electric Vehicle Stocks On Your Watchlist
As we head into the second-quarter earnings session this week, many investors continue to be wary of the volatility in the stock market. All eyes will be on downside risk to earnings forecasts as companies adapt to rising interest rates and pressure from inflation. Therefore, market participants could be more selective with their investment options. As such, a high-growth sector benefiting from secular trends such as electric vehicle stocks could be in focus. Despite fear of a recession weighing on sentiments, the EV sector continues to grow with new developments.
For instance, Walmart said today that it has signed a definitive agreement with EV company Canoo to purchase 4,500 all-electric Lifestyle Delivery Vehicles . Notably, the LDV is engineered for high-frequency stop-and-go deliveries, and its interior is designed for small package delivery. Walmart has the option to purchase up to 10,000 units of the vehicle. The LDV should be hitting the road in 2023, and help contribute to Walmarts goal to achieve zero emissions by 2040.
Elsewhere, emerging EV manufacturer, Mullen Automotive recently announced that it has signed a binding agreement with DelPack Logistics, an Amazon Delivery Service Partner. The agreement states that Delpack will purchase up to 600 Mullen Class 2 EV cargo vans over the next 18 months. Given all these exciting developments, here are four of the top EV stocks worth noting in the stock market today.
These Are The Best Electric Car Stocks To Buy And Watch Now
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Are you thinking that the EV market trend will die down? Think again, and instead consider investing in the best electric car stocks I’ve found.
Electric cars continue to grow in popularity while becoming more common and financially available to people. Personally, I bought myself a BMW i8 hybrid this year and love it.
The Electric Vehicles Market is projected to reach 39,208 thousand units by 2030 from an estimated 8,151 thousand units in 2022.
Electric cars are here to stay folks, so how can you capitalize on the electric car revolution?
Many people are looking for the best electric car stocks to buy for the next 10 years.
If you want to invest in electric car stocks, then you should capitalize on the best electric car stocks that Ive found below.
Best Ev Stocks For 2022 To Buy Now: Lucid Motors
Among the emerging names, U.S. EV maker Lucid Motors looks attractive for 2022. The company has already commenced delivery of its first model. The initial bookings have been encouraging and Lucid has a backlog of 17,000 vehicles as of November 2021. This would imply a revenue backlog of $1.3 billion.
LCID stock surged over 100% after consolidation around $20 levels. However, there has been a correction in the recent past and it provides an attractive entry opportunity.
A key catalyst for 2022 is continued growth in vehicle deliveries as Lucid expands to Canada and EMEA. Additionally, the company is pursuing the second phase of manufacturing expansion, which will boost annual deliveries capacity to 90,000 vehicles.
Lucid also has plans to enter China in 2023. In the same year, the company will be launching its second model, a SUV. This will help in further accelerating growth.
LCID stock is among the top EV stocks to consider with the companys focus on innovation and technology. Lucid Air, as an example, is the longest-range car rated by the EPA, at 520 miles in a single charge.
Overall, Lucid is positioned to capture market share in a fast-growing EV market. I would not be surprised if LCID stock doubles in the next 12-18 months.
Read Also: Tesla Supercharger Price Per Kwh
Ev Stocks For September 2022
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Gas prices have surged to all-time highs over the last year and so has interest in electric vehicles .
According to the International Energy Agency, global EV sales doubled in 2021 to a record of 6.6 million vehicles, and have continued their strong growth in 2022.
Given these sales numbers, EV stocks have started to attract a lot of investor interest. The largest one, Tesla, now has a larger than General Motors, Ford and Stellantis combined. And the subsidies introduced by the Inflation Reduction Act could boost sales even more going forward.
How To Start Trading Stocks Online
Online stock trading has revolutionised the finance industry. Its possible to trade your account with the click of a button or tap of a screen, from desktops and mobile apps. You can even copy the ideas of others or engage in social trading where investors share ideas and news.
The best part is that the growth of the sector has led to intense competition and this has driven down costs.
A lot of the brokers have developed user-friendly sites to support beginners. Pick the right one and start registering for an account now, and you could be buying electric vehicle stocks within a matter of minutes.
The most important thing to remember is to use a legitimate broker. One that is regulated helps you avoid the scams and scammers.
Recommended Reading: Used Tesla Model 3 Performance For Sale
The Better Ev Stock To Buy
Its hard to ignore the EV stock mega trend. TSLA and GM dont rate Bullish or Strong Bullish in our Green Zone Ratings system.
However, Teslas maximum momentum makes it worth a look, at least for a short-term play.
And GM is determined to cut into that market share over the next decade.
But if you want Adam ODells most promising play on the EV stock boom, youve got to check out Green Zone Fortunes. Adam recently recommended a company that is coming for TSLAs lunch money. And it rates a Strong Bullish 90 in Green Zone Ratings!
Green Zone Rating on October 29, 2021.
Adam expects this stock to soar 135% higher over the next three years as it develops a new battery technology that will be an EV game-changer.
To find out how you can gain access to this stock recommendation, along with information on genomics, Adams No. 1 stock mega trend of the next decade,
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 decade’s 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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Two Three & Four Wheelers
This is the most obvious choice for investors who want to play the EV opportunity. Select automobile companies which are manufacturing EVs in the two, three, and four wheeler segments.
The 4-wheeler segment includes Tata Motors while the 2 and 3-wheeler segments have TVS Motors, Bajaj Auto, Hero MotoCorp, Greaves Cotton, among others.
Although there are several gaps in the 4-wheeler EV space such as limited number of products, high prices, and insufficient batteries, companies have big plans for the future.
The Indian car market is governed by two-wheelers, which account for 75% of the total number of vehicles sold in the country. India’s homegrown two-wheeler majors are fast-tracking their EV plans to capture reasonable market shares in the coming years.
India is currently undergoing an EV revolution with high adoptions in 2/3/4-wheeler spaces and increasing interest in private 4-wheeler sector.
Here’s how the top stocks from the segment have performed this year.
If You’re Looking To Gain Exposure To Electric Vehicle Stocks While They’re Still Down Here Are Some Names Worth Watching
2022 has been a tough year for growth stocks. The Nasdaq is well into correction territory, and many of the tech and growth names of the past several years have been hit particularly hard.
Electric vehicle stocks have been no exception. The entire industry has lagged as investors have rotated out of growth names and into cheaper value stocks.
So, what’s the story here? Is the epic run in EV stocks over, or is it merely taking a well-deserved break?
Part of it comes down to the Federal Reserve. The value of a stock today is determined by its future earnings discounted to today’s prices. The higher interest rates go, the lower those future earnings are worth in today’s dollars.
As a result, the Fed’s aggressive response to inflation tends to hit growth stocks like EVs the hardest. Most are not particularly profitable today, so the price is heavily influenced by those expected future profits, which get less and less valuable the higher interest rates go.
There’s also the competition factor. The notion of an “electric vehicle company” may seem antiquated in just a few short years. Virtually every traditional automaker is jumping into the fray, and some, particularly in Europe, have already effectively reinvented themselves. For example, Volvo now offers an electric version of every car it sells, and by 2030 the company has committed to being 100% electric. No Volvo car will be available with a combustion engine.
Also Check: How Much Does Tesla Model S Cost
Ev Charging Stocks: Final Thoughts
Theres no doubt that electric vehicles are changing the entire transportation industry.
While theres tons of hype around EVs right now, its unlikely that itll go away anytime soon.
Investing in EV charging stocks could be a great way to get ahead of the trends and enjoy hefty returns in the future.
Best Ev Charging Stocks
We cant talk about electric vehicles without mentioning Tesla.
This company pushed EVs to the forefront of public consciousness over the past few years.
With celebrity entrepreneur Elon Musk at the helm, Tesla generated a huge amount of hype around its sleek, energy-efficient cars.
Unlike many other EV companies, Tesla has its own charging stations around the US called Superchargers.
The only way to charge a Tesla is through one of its charging stations it cant charge at any other type of charging station.
Since Tesla has such a significant market share in the EV industry, adding them to your portfolio as a long-term investment makes sense.
Teslas stock price has grown exponentially over the past year and has consistently been in the news.
Tesla had a surge over the last quarter of 2021, leading to its highest value ever.
Regardless, the companys EV stocks already came back to early 2021 numbers, mostly due to supply chain issues for the company.
Despite Teslas successful financial results, Elon Musks comments on the delays for the Cybertruck, including a less than ideal growth projection for the company, spooked investors, pushing for a sharp dip.
Theres also growing competition for the company that was once the only game in the market, but Elons words still inform stock investors on whether they can be confident in the industry or they should turn somewhere else.
Also Check: Wawa Tesla Charging Station Cost
Best Ev Stocks For 202: Xpeng
Among Chinese EV stocks, XPEV stock has been the best performer in the last 12 months. Returns have been marginally positive during this period. With strong growth in deliveries and new product pipeline, XPeng is likely to break-out to the upside.
In November 2021, XPeng unveiled a new model thats targeted toward international markets. The G9 SUV will be launched in China in Q3 2022. This launch will support deliveries growth in 2023. Its worth noting that G9 will feature Nvidia chips, lidar technology and semi-autonomous driving system. The car is likely to be tech-heavy and will attract global attention.
Its also worth noting that the company launched XPeng P5 smart family sedan in October 2021. This is the third production model for the company. Growth in P5 deliveries will have a positive impact on revenue through 2022.
XPeng has witnessed a healthy increase in vehicle margin to 13.6% for Q3 2021 as compared to 3.2% for Q3 2020. With sustained growth in deliveries, its likely that margin expansion will continue.
Like other Chinese EV companies, XPeng has also strengthened its balance sheet for aggressive growth. At the end of September 2021, the company reported $7.0 billion in cash and equivalents.
Overall, XPEV stock is among the best EV stocks to consider for 2022. With product launch, global expansion and margin improvement, there are ample catalysts. It is among the top 10 holdings in both the KARS and the CHIQ exchange-traded funds.
Research Electric Cars And Battery Manufacturers
Successful trading relies on investors having and sticking to a well-thought-out strategy. The best brokers provide their clients with free research materials and this is a good starting point. Dont, however, dismiss your own gut instinct. Electric cars are, after all, a consumer good so listen out for feedback from contacts.
Also Check: Black Tesla Model 3 Performance
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
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 you’d 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 Future Of The Electric Car Industry
The U.S. infrastructure bill that was signed into law late last year ultimately dropped some EV-related proposals, but funding for EV charging made the cut. The bill provides $5 billion for states to build out a national changing network, and an additional $2.5 billion is earmarked for grants. Access to charging infrastructure is still a pain point for EV owners, so this multi-billion- dollar investment in charging should help boost the appeal of electric vehicles in the long run.
Many companies participating in the EV sector are going public, while legacy automakers plan to release a plethora of electric vehicles over the next five years. Investing in this highly competitive and fast-growing industry is likely to be profitable, but it’s important to take steps to minimize your investment risk. Don’t invest in just one electric car company but hold positions in several companies of various sizes and consider buying shares in an ETF.
