3 Electric Vehicle Stocks to Buy

Stocks to buy
  • Electric vehicle stocks have been getting crushed, but represent opportunity if the market turns around.
  • Tesla (TSLA) — The leader in electric vehicles with strong momentum despite market-wide turmoil.
  • Ford (F) — Electrifying the country’s best-selling vehicle, while investing in its long-term EV goals.
  • Nio (NIO) — a strong electric vehicle producer in China that has seen its stock fall 80%.
a bush cut out in the shape of a car with a plug attached to it and a charger symbol in the center implying it's an electric vehicle

Source: Shutterstock

At one point, electric vehicle stocks were some of the hottest names on Wall Street. While Tesla (NASDAQ:TSLA) had always been a popular name, many others joined the fray. Some of these companies were traditional automakers, while others were newer EV companies that were already public. Lastly, we had a large number of new EV entrants in the market.

Now that this group has taken a painful beating, there could be some opportunity to pick over the scraps. Maybe not tomorrow and perhaps not next week. But these are names to keep on your radar this year.

At one point, I complained about the new entrants. Some debuted via IPOs, while others came to market via SPAC offerings. It doesn’t matter though. The point is, too many companies were entering the market and generating egregious valuations with little to no revenue.

It was completely undeserving. And while that alone may not be enough of a reason to dislike a stock (or a whole group of them), it was certainly a concern. Think about it. How could Rivian (NASDAQ:RIVN) be worth $100 billion — and more than Ford (NYSE:F) — without any real revenue?

That never made sense, but there were several dozen other examples. Let’s look at a few electric vehicle stocks that do have merit.

Ticker Company Price
TSLA Tesla $745.49
F Ford $13
NIO Nio $12.92

Electric Vehicle Stocks: Tesla (TSLA)

TSLA stock: Tesla Super Charging station on Stockdale Hwy and the 5 fwy. Tesla Supercharger stations allow Tesla cars to be fast-charged at the network within an hour.

Source: Sheila Fitzgerald / Shutterstock.com

Tesla is one of the top-tier electric vehicle stocks in the market. The recent swoons in the stock price have less to do with its business and more to do with outside noise. Specifically, CEO Elon Musk’s agreement to buy Twitter (NYSE:TWTR) caused new concern for the stock price.

Because of his $44 billion purchase, he has had to start raising cash by selling some of his holdings in Tesla stock. Musk has brought in a few other buyers, which may stem some of the concern for how much he’ll sell, but now we also have a market-wide selloff to navigate.

Even though Tesla has been doing well and still commands an $860 billion market cap, it’s hard to believe its stock won’t go down if the market continues to sell off.

That said, the company most recently beat on earnings and revenue estimates. It also delivered better-than-expected delivery results and just opened two new production plants. This one is a winner.

Ford (F)

2022 Ford (F stock) F-150 Lightning Lariat

Source: Ford

Ford is a really interesting one here, especially now that we can consider it one of the electric vehicle stocks. When it comes to profit and sales, this is one of the more stable automakers in the EV space.

The company possesses the F-Series pickup truck, which is the best-selling vehicle in the U.S. Notice I didn’t say the best-selling truck — it’s the most popular vehicle in the country. Now Ford’s rolling out an electrified version with the F-150 Lightning.

The truck will start at just under $40,000 and offer 230 miles of driving range. Longer ranges will be available for customers looking for a larger battery. Any concerns Ford had about potential demand has evaporated over the last year. In Q4, the company stopped taking reservations as they topped 200,000.

The automaker continues to increase its production plans and most recently announced it will double production to 150,000 units annually by 2023.

The F-150 is part of a trifecta approach from Ford, which has its Mustang Mach-E and electric Transit van in its EV plans as well.

Electric Vehicle Stocks: Nio (NIO)

NIO store sign and customer in electric car store. NIO is a Chinese EV company

Source: Robert Way / Shutterstock.com

Lastly there’s Nio (NYSE:NIO), which is one of the more controversial names on this list of electric vehicle stocks. That’s as the stock has been liquified, falling 80% from its all-time high.

If we’re talking about ranges, this one has been all over the map. From its post-Covid low in March 2020, Nio stock soared more than 2,900%. Yeah, almost 3,000% in less than a year! Anyone that was able to jump on board and hold for a bulk of the move can probably retire now. That is, if they sold.

The rally was stunning, but the decline has been just as jaw-dropping. The question now is, can it find its footing?

Despite the seeming distrust of Chinese equities and the disgust toward growth stocks, Nio continues to do good things. The automaker recently set a quarterly record for deliveries, while analysts still expect strong growth. Specifically, consensus expectations call for 73% revenue growth this year and 66% growth in 2023.

Keep in mind, there have been recent delisting fears with Nio stock. So investors will need to weigh that consideration for their own risk tolerance.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell

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