Best EV Stocks for Investing in 2022

In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share. We may not know which automaker or automakers will end up being the ultimate winner. But we do know that more electric cars means more demand for batteries … and that means more demand for lithium. But these days even non-car enthusiasts are paying attention to what’s happening in electric vehicles (EVs).

That said, Tesla has lost market share in recent years, and the same may hold true in coming years, as more and more players will be pushing into this market. Considering electric cars are the future, these EV stocks are excellent investments to future-proof your portfolio. So, expect them to keep gaining momentum as we enter the new year. These are the electric car stocks with the lowest 12-month trailing price-to-sales (P/S) ratio.

If that holds, it would be bigger than the expansion seen by CPUs in the 1990s and mobile processors in the 2000s, which saw growth rates of 20% and 18%, respectively. For one final “pick and shovel” play on EV stocks, consider the shares of ON Semiconductor (ON, $101.91). For better or worse, it’s hard to separate Tesla from its high-profile and controversial CEO Elon Musk. The stock has a beta of 2.84, which means it is wildly sensitive to the market’s moves.

DRIV seeks to mirror the performance of the Solactive Autonomous & Electric Vehicles Index, which lists companies in the electric vehicle space. Electric cars — commonly called electric vehicles or EVs — are automobiles with engines powered by electricity rather than gas. Electric car stocks comprise companies primarily focused on manufacturing electric cars. Companies that manufacture the components used in electric cars — such as batteries or autonomous vehicle systems — can also be considered part of the electric car industry. Investors must take market capitalization, sales and earnings growth, cash flow, and cost of production into account before investing in the sector.

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General Motors is a cyclical stock, as car sales tend to decline in a recession. So, given that we’re seeing early signs that an economic slowdown may be in store for us later this year, you might want to consider dollar-cost averaging into this stock little by little. And Chevrolet is launching an electric version of the popular Silverado pickup truck this fall that boasts a range of 400 miles on a full charge and up to 10,000 pounds of towing capacity. Still, if you are bullish on EV stocks and accept that China is the center of the action, then XPeng is a good way to get exposure to this fast-growing market. With the rising number of EVs, there will be a need for more places to charge them. In the coming decades, EV charging points should become as widespread as gas stations are today.

And while often stock pickers will look for a strong track record of performance, many EV stocks don’t have one, making the EV market speculative. Q.ai. Q.ai offers advanced investment strategies that combine human ingenuity with AI technology. Our investment strategies, which we call “Investment Kits,” help investors manage risk and maximize returns by utilizing AI to identify trends and predict changes in the market. Invest in up to 20 stocks and ETFs by adding a single Kit to your portfolio. Our AI will rebalance your investments on a weekly basis to optimize performance.

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But the shares aren’t excessively priced at 20 times forward earnings. And if the company’s investments in silicon carbide pay off as expected, its massive move since 2020 could be only the beginning. For another “pick and shovel” play on this list of the best EV stocks, consider ChargePoint Holdings (CHPT, $8.69). CHPT https://bigbostrade.com/ provides electric vehicle charging solutions in the U.S. and internationally. It offers a portfolio of hardware, software and services for commercial, fleet and residential customers. When you see EV chargers in office parks or parking lots, there is a decent chance you’re looking at one of ChargePoint’s products.

And even the best technology and most desirable category products won’t matter if a company can’t scale the production capacity to satisfy demand. Mispriced stocks are hiding in plain sight and present great investment opportunities for the remainder of 2023. Forbes’ top investment experts share 7 overlooked stocks in this exclusive report, 7 Best Stocks To Buy For The Second Half of 2023.

• However, the jury is still out on this logic, as EVs have a long way to go before mass adoption.
• The year 2021 has also been characterized by emergence of new players in the consumer and commercial EV segment.
• The equity markets are therefore very important to their growth and sustainability.
• The company will offer storage batteries, solar panels, and hydrogen fuel cells.
• But with a 30% gain in the first quarter of 2023 helping to offset some losses from a vicious 2022, the stock is capable of big moves to both the upside and the downside.

Nio plans to enter Germany, Netherlands, Sweden and Denmark in 2022. Europe is another big market for EV, which is at a tipping point. Ford also has ambitious plans for several new EV models in China. This will help in accelerating the sales transformation from conventional to EV. Ford and South Korea’s SK Innovation plan to invest $11.4 billion in production of a new EV plant and three battery manufacturing facilities. The advanced lithium-ion battery production will commence in 2025.

New Age EV Stocks

The company is so iconic, there is no way to avoid mentioning the stock when discussing electric vehicles. The above claims stand to make the case that EVs are becoming increasingly popular across the globe, and the EV industry is becoming ever profitable as a result. With that context in mind, we have compiled a list of the best EV stocks to invest in. The stocks mentioned in this article were selected on the basis of hedge fund popularity and past and potential growth measured by gains in the past 6 months and year to date. The company went public on the NYSE in March 2021 and is valued at over $8 billion currently.

Some car stocks are more ready than others for an electric future. The stock is certainly a riskier proposition than some others on this list—evidenced by a steep price/sales ratio. But with a 30% gain in the first quarter of 2023 helping to offset some losses from a vicious 2022, the stock is capable of big moves to both the upside and the downside. Lucid manufactures luxury EVs, but it delivered only 4,369 vehicles last year, blaming supply chain and production issues for its diminished performance. It’s also worth noting that Saudi Arabia’s public investment fund owns a 62% stake in the company. A key catalyst for 2022 is continued growth in vehicle deliveries as Lucid expands to Canada and EMEA.

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This was, for example, proven in the bursting of the cannabis stock bubble a couple of years ago when cannabis was legalized in Canada. The same, theoretically, could happen with EV stocks as well. The electric car industry differs from the traditional automotive industry because it is so new.

Unlike is peers, EVgo offers only fast chargers, which can recharge a vehicle in much less time than the more common “Level 2” chargers. The company has more than 800 fast charging locations across the U.S., and all of them are powered by 100% renewable energy. EVgo has more than 310,000 customer accounts and it intends to more than triple its charging network in the next five years. As of this writing, the S&P 500 index is up nearly 26% for the year. You must be happy if your portfolio’s total returns for the year exceeded that level.

FPGA, or Field Programmable Gate Arrays, are semiconductor devices that play a key role in the latest car designs. They’re used in car cameras and infotainment systems, for example. Its silicon carbide, or SiC, chips can operate at much higher voltages, temperatures and frequencies than traditional silicon-based semiconductors. On Aug. 28, XPeng and ride-hailing giant Didi Global (DIDI) announced that they will launch a new car brand, called Mona. Some analysts expect the deal to drive XPeng’s volumes higher, giving it access to access to Didi’s network of 19 million ride-sharing customers in China. On Aug. 21, XPeng offered a solid EV delivery outlook, offsetting wider losses for the second quarter.

Production is currently ramping up at Tesla’s factories in Texas and Germany, and the company is building a new factory in Mexico. However, there are a couple of negative developments weighing down ARVL stock. Instead, it relies on its neural network algorithm to interpret input from cameras and radar for vehicles to perceive what’s happening around them more accurately than ever before.

In addition, XPeng is making it easier than ever for people across China to enjoy free supercharging and fast charging services. It has a network of 1,734 chargers now available nationwide, including 550 branded stations. Along the way, they will have a massive impact on the public markets. All of these new EV companies need finance to become successful. The equity markets are therefore very important to their growth and sustainability. ON expects the silicone carbide market to see 33% compound annual growth through 2030.

I believe that the stock is likely to witness a short-squeeze rally in 2022. Further, swelling of pre-orders is likely to be another catalyst for upside.

Further, as companies expand globally, there is a big addressable market. Trading at $3.57 today, the penny stock is highly undervalued. The stock is trading much lower than the 52-week high of $24 which shows ample upside potential from the current level.

Best EV Stocks FAQs

Rivian has almost $12 billion in cash on its balance sheet, so it can afford to lose vast sums as it ramps up production. But if the company hits a roadblock, it could be in serious trouble. Like Nio and LI, XPeng is a U.S.-listed Chinese electric vehicle player. Over the last year, it has seen a massive increase in total sales numbers. But again, if you are bullish on EVs and appreciate that China is the world’s biggest market for electric vehicles, then having exposure to one of the country’s leading producers only makes sense. China alone accounted for 42% of global EV sales in the first half of 2021.

The industry is still in its early days, even though Tesla has been producing cars for a decade. For example, investors were excited about Nikola, an EV maker of heavy-duty trucks. However, news came out the CEO was providing false statements to drive the stock value higher. Additionally, many auto manufacturers are using the supply chain to their advantage and focusing on higher profit margin vehicles to continue charging a premium. As an investor, you might wonder how to invest in this space to earn a return on your money. Here is where the electric vehicle industry stands now, as well as the biggest players and how to invest in them.

So, any discussion on electric vehicles has to include a discussion of China. “Nvidia is another solutions supplier that we like,” says Cheng says. “In the world of electric and autonomous driving, what differentiates free forex software one OEM from another is how fast their system identifies, analyzes and fixes an issue. Nvidia develops a full stack solution and has unparalleled advantages including hardware, software and data centers.