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Investing in EV Stocks

Investing in EV Stocks

Whether you’re an environmentalist or a growth opportunist, electric vehicle stocks may seem like an enticing addition to your investment portfolio.

In the past decade, the global electric vehicle (EV) market has grown significantly and is expected to continue accelerating in the years to come. According to a Global Electric Vehicle Market report, the EV market is expected to grow at a compound annual growth rate (CAGR) of 26.8%, reaching 34.8 million units by 2030.

Electric vehicle stocks, or EV stocks, include electric vehicle manufacturers, electric battery producers, and companies that make charging stations and electric motors. However, a few stand out above their peers as electric vehicle stocks to consider.

How to use this guide

  1. Understand electric vehicle investments: We cover the newest and the largest electric vehicles and green transportation companies, to provide a holistic picture of the electric auto marketplace.
  2. Learn how to invest: We look at how you can invest in electric vehicle stocks in the share market and provide a popular method to do so on our online trading platform, WebTrader.
  3. Create an account and log in: Fill in our simple application form and explore several ways to gain exposure to some of the most attractive electric vehicle stocks with zero commission.

Are Electric-Vehicle Stocks a Good Investment?

Companies with two important characteristics generally make the best candidates for stocks to buy to watch, according to experts' guidelines. First, they need a strong track record of earnings growth. Second, the stock should be showing elements of market outperformance, and be shaping bullish chart patterns.

But most of the new EV stocks have neither. They include Fisker (FSR), Canoo (GOEV), Faraday Future (FFIE), Lordstown (RIDE), and Xos (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 (LCID) began deliveries of the Lucid Air, a luxury electric sedan, last October. Rivian Automotive (RIVN) also began delivering the R1T, an electric pickup, in late 2021, with the R1S SUV due this year.

Meanwhile, Chinese EV stocks like Nio (NIO), Xpeng (XPEV), and Li Auto (LI) sell tens of thousands of vehicles but remain unprofitable for now. Then there are legacy auto giants like General Motors (GM), Ford (F), and China's BYD Co. (BYDDF) that are transforming into electric-vehicle powerhouses.

Ferrari (RACE) plans to launch its first all-electric supercar in 2025, joining the ranks of EV stocks after long resisting the shift to electric vehicles.

Electric Car Stocks Include Battery Stocks, Charging Stocks

The growing universe of EV stocks doesn't end with carmakers. A constellation of other companies provides car batteries, car charging stations, electric motors, and other EV-associated products. Among them are EV charging networks ChargePoint (CHPT), EVgo (EVGO), Blink Charging (BLNK), and Wallbox (WBX).

Hyliion (HYLN) is developing electric powertrains for big-rig trucks as well as powertrains that can be compatible with renewable natural gas and hydrogen fuel cells.

Romeo Power (RMO) makes battery packs for commercial EV fleets. QuantumScape (QS) touts a breakthrough in solid-state lithium metal batteries. And Global X Lithium and Battery Technology ETF (LIT) holds a basket of stocks, from lithium miners to battery producers, poised to benefit from the rise of electric vehicles.

Magna (MGA) supplies battery enclosures and e-drive gearboxes to the likes of GM, Nio, and Xpeng. The company also will make the Fisker Ocean SUV, likely to arrive by year-end.

Top 12 electric vehicle stocks

It's been a bumpy ride for electric vehicle stocks so far in 2022. Vehicle production declined almost across the board, largely due to headwinds in China, according to a Bank of America analysis. This, coupled with continued strain from COVID-19 and a semiconductor shortage, has increased the risk profile for the sector considerably. That said, investors looking for long-term plays can still find value in the stocks of companies that make EVs and the batteries that go into them. Here are the top 12 EV stocks, according to the number of US ETF holdings.

1. Tesla Inc. (TSLA)

It's hard to have a list of the best EV stocks and not mention Tesla (TSLA). As the world's top EV maker, it remains the leading technology innovator in the space, especially regarding battery chemistry. But that lead is shrinking, as new competitors join the market, such as many of the names on the rest of this list. Tesla recently announced a proposed 3-for-1 stock split that would take place as a stock dividend. The split won't be approved until the August shareholder meeting, but if it goes through, it will make shares of the company more accessible to individual investors.

Best EV stocks - Tesla
Source: CAPEX WebTrader

Tesla Inc is a holding in 294 U.S.-traded ETFs. TSLA has around 65.1M shares in the U.S. ETF market. The largest ETF holder of TSLA is the SPDR S&P 500 ETF Trust (SPY), with approximately 8.88M shares. Investors may also find of interest that the ETF with the largest allocation to TSLA stock is Consumer Discretionary Select Sector SPDR Fund (XLY), with a portfolio weight of 20.71%. On average, U.S. ETFs allocate 3.02% of TSLA to their portfolios.

2. Albermarle Corp. (ALB)

Albermarle (ALB) is another company benefiting from higher lithium demand. The U.S.-based lithium producer generates 40% of its revenue from lithium and has been expanding globally to help meet rising demand. They recently announced a third chemical conversion plant in Chile, positioning the company to double its lithium capacity. It has also made additional investments in Australia to further increase capacity. As of 2020, Albemarle was the largest provider of lithium for electric vehicle batteries, according to Wikipedia.

Best EV stocks - Albermale
Source: CAPEX WebTrader

Albemarle Corporation is a holding in 201 U.S.-traded ETFs. ALB has around 16.2M shares in the U.S. ETF market. The largest ETF holder of ALB is the Global X Lithium & Battery Tech ETF (LIT), with approximately 2.49M shares. Investors may also find of interest that the ETF with the largest allocation to ALB stock is Global X Lithium & Battery Tech ETF (LIT), with a portfolio weight of 12.30%. On average, U.S. ETFs allocate 0.70% of ALB to their portfolios.

3. Ford Motor Co. (F)

Companies like Ford (F) and GM make more attractive investments not only because they're more established, but also because of their stronger cash flows, distribution channels, and brand recognition. In addition to plans to expand its EV offerings, Ford has also committed to investing in new plants to produce the batteries needed for electric vehicles. Demand for the new Ford Lightning, their all-electric truck, as well as the Mustang Mach-E, have exceeded expectations, and the company has committed to doubling its production ability already.

Best EV stocks - ford
Source: CAPEX WebTrader

Ford Motor Company is a holding in 200 U.S.-traded ETFs. F has around 307.5M shares in the U.S. ETF market. The largest ETF holder of F is the SPDR S&P 500 ETF Trust (SPY), with approximately 41.75M shares. Investors may also find of interest that the ETF with the largest allocation to F stock is Engine No. 1 Transform Climate ETF (NETZ), with a portfolio weight of 7.17%. On average, U.S. ETFs allocate 0.54% of F to their portfolios.

4. General Motors Co. (GM)

If you want a name, you can recognize and an EV stock that's less speculative than a startup, General Motors (GM) is a good option. GM has committed to offering 30 new electric vehicles by 2025. Given their production capabilities, name recognition, distribution network, and capital available to invest in their production, they can be a significant player in the EV market in the coming years. They already went after Tesla's customers directly once before when Tesla introduced the Model 3 and was unable to meet the demand for the car.

Best EV stocks - gm
Source: CAPEX WebTrader

General Motors Company is a holding in 191 U.S.-traded ETFs. GM has around 101.8M shares in the U.S. ETF market. The largest ETF holder of GM is the SPDR S&P 500 ETF Trust (SPY), with approximately 15.35M shares. Investors may also find of interest that the ETF with the largest allocation to GM stock is Engine No. 1 Transform Climate ETF (NETZ), with a portfolio weight of 9.16%. On average, U.S. ETFs allocate 0.57% of GM to their portfolios.

5. Nio Inc. (NIO)

Not only is Nio's latest EV, the ES7 SUV, a much-anticipated release promised at the end of August, but Nio is also becoming a global leader in battery swapping technology. The company operates more than 900 swap stations across China and plans to launch more throughout Europe as well. The stock is also benefiting from the reopening of trade in China as COVID restrictions are being lifted.

Best EV stocks - nio
Source: CAPEX WebTrader

NIO Inc. is a holding in 85 U.S.-traded ETFs. NIO has around 64.5M shares in the U.S. ETF market. The largest ETF holder of NIO is the Vanguard FTSE Emerging Markets ETF (VWO), with approximately 13.21M shares. Investors may also find of interest that the ETF with the largest allocation to NIO stock is KraneShares MSCI China Clean Technology Index ETF (KGRN), with a portfolio weight of 7.86%. On average, U.S. ETFs allocate 1.05% of NIO to their portfolios.

6. Rivian (RIVN)

Rivian Automotive (RIVN), a California-based electric vehicle (EV) firm, has seen its stock gradually decline since its market debut in November 2021, plunging nearly 80% from the initial public offering (IPO) level of $78.Looking ahead, the automaker plans to increase its share in existing markets, raise the depth and breadth of its software and services offerings, and broaden and diversify its portfolio of consumer and commercial vehicles. In particular, the company said that its top priority this year will be to ramp up production in its Normal, Illinois, production facility.

Best EV stocks - rivian
Source: CAPEX WebTrader

Rivian Automotive is a holding in 79 U.S.-traded ETFs. RIVN has around 6.7M shares in the U.S. ETF market. The largest ETF holder of RIVN is the Vanguard Total Stock Market ETF (VTI), with approximately 1.14M shares. Investors may also find of interest that the ETF with the largest allocation to RIVN stock is SoFi Social 50 ETF (SFYF), with a portfolio weight of 6.35%. On average, U.S. ETFs allocate 0.37% of RIVN to their portfolios.

7. Lucid Group (LCID)

Hailing from Silicon Valley, the global centre for technology and innovation, electric vehicle (EV) manufacturer Lucid Group (LCID) was founded in 2007. The EV maker’s factory in Arizona is North America’s first purpose-built, greenfield EV facility. With an initial capacity to manufacture approximately 10,000 EVs annually, the facility has the functionality to produce over 300,000 cars with planned expansions.

Best EV stocks - lucid motors
Source: CAPEX WebTrader

Lucid Group, Inc. is a holding in 74 U.S.-traded ETFs. LCID has around 46.2M shares in the U.S. ETF market. The largest ETF holder of LCID is the Invesco QQQ Trust (QQQ), with approximately 23.51M shares. Investors may also find of interest that the ETF with the largest allocation to LCID stock is ALPS Clean Energy ETF (ACES), with a portfolio weight of 4.46%. On average, U.S. ETFs allocate 0.42% of LCID to their portfolios.

8. BHP Group Ltd. (BHP)

As a nickel miner, BHP Group (BHP) may not be the first name you think of when considering EV stocks. But nickel is an essential component of EV battery chemistries. The supply of nickel is struggling to keep up with demand. This should pose a boon for nickel mining companies like BHP. Tesla and other EV automakers have been playing around with the battery chemistries to reduce cost. Last year, Tesla signed a deal with BHP to obtain sustainably sourced nickel from Australia.

BHP Group Ltd is a holding in 18 U.S.-traded ETFs. BHP has around 1.6M shares in the U.S. ETF market. The largest ETF holder of BHP is the First Trust Indxx Global Natural Resources Income ETF (FTRI), with approximately 249.48K shares. Investors may also find of interest that the ETF with the largest allocation to BHP stock is Simplify Volt RoboCar Disruption and Tech ETF (VCAR), with a portfolio weight of 11.18%. On average, U.S. ETFs allocate 2.78% of BHP to their portfolios.

>> Start trading BHP

9. Li Auto (LI)

The next stock on the list, Li Auto (LI), is a major player in China’s EV market. It relies on its proprietary internal combustion engine range extender to appeal to a wider customer base. Li Auto is among the top 10 EV manufacturers in China, which tops the list of GHG emissions. Domestic Chinese policies encourage drivers to choose EVs for their next car purchase. Recent research by Mordor Intelligence suggests that the national market could grow at a compound annual growth rate (CAGR) of over 30% between 2022 and 2027.

Best EV stocks - li auto
Source: CAPEX WebTrader

Li Auto, Inc. Class A is a holding in 34 U.S.-traded ETFs. LI has around 14M shares in the U.S. ETF market. The largest ETF holder of RIVN is the IEMG, with approximately 5M shares. Investors may also find of interest that the ETF with the largest allocation to RIVN stock is FPXI, with a portfolio weight of 7%.

10. Xpeng (XPENG)

XPENG rolled out its very first production model in December 2018. In September 2021, the company became the first emerging Chinese EV brand to achieve 10,000 monthly deliveries. A month later, XPENG reached 100,000 total deliveries. In the following 8 months, XPENG delivered another 100,000 units despite the impact of COVID-19 and global supply chain challenges. The company delivered a total of 98,155 smart EVs in 2021, surpassing any other emerging EV brand in China. XPENG announced this week that it has reached a milestone of 200,000 cumulative smart EV deliveries.

Best EV stocks - xpeng
Source: CAPEX WebTrader

XPENG is a holding in 35 U.S.-traded ETFs. LI has around 13.5M shares in the U.S. ETF market. The largest ETF holder of RIVN is the IEMG, with approximately 4M shares. Investors may also find of interest that the ETF with the largest allocation to XPENG stock is PGJ, with a portfolio weight of 4.5%.

11. Magna International (MGA)

Magna International (MGA) is a leading global automotive supplier with 317 manufacturing operations and 102 product development, engineering, and sales centers across 29 countries. The company has over 155,000 employees. It has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities, which include body, chassis, exterior, seating, powertrain, active driver assistance, vision, closure, and roof systems. The company also has electronic and software capabilities across many of these areas.

Best EV stocks - magna
Source: CAPEX WebTrader

Magna is a holding in 3 U.S.-traded ETFs. LI has around 0.7M shares in the U.S. ETF market. The largest ETF holder of MGA is the ARKQ, with approximately 0.4M shares. Investors may also find of interest that the ETF with the largest allocation to XPENG stock is PID, with a portfolio weight of 1.91%.

12. Nikola Corporation (NKLA)

Unlike electric car maker Tesla Inc. (TSLA), whose vehicles are charged by plugging them in, Nikola (NKLA) aims to build vehicles that use hydrogen fuel-cell technology. While hydrogen fuel-cell vehicles share many benefits with pure electric vehicles, they take less time to recharge and have a longer range. The company also plans to use solar power at its fueling stations, which will be supplemented with grid power. While Nikola has announced several zero-emissions vehicle design concepts since the company’s establishment, none of the vehicles was in production as of September 2020.

Best EV stocks - nikola
Source: CAPEX WebTrader

Nikola Corporation is a holding in 48 U.S.-traded ETFs. NKLA has around 17.5M shares in the U.S. ETF market. The largest ETF holder of NKLA is the iShares Russell 2000 ETF (IWM), with approximately 4.98M shares. Investors may also find of interest that the ETF with the largest allocation to NKLA stock is Direxion Moonshot Innovators ETF (MOON), with a portfolio weight of 2.44%. On average, U.S. ETFs allocate 0.24% of NKLA to their portfolios.

* Source: etf.com. Note that the number of Holdings could change in time.

How to invest in electric vehicles?

There are several ways to gain exposure to electric vehicles and green transportation. These include investing in individual stocks, ETFs that track the performance of several electric auto stocks, and EV share baskets.

Please note that when trading stocks, ETFs, or share baskets with us, you will be trading using leverage. Leveraged or CFD trading allows you to put up an initial margin or deposit, but it's important to remember that your profits and losses are magnified based on the trade's full value.

Electric vehicle stocks

Investors who want to gain exposure to the electric vehicle and green transportation segments can turn to various types of companies on the major exchange. The spectrum of options ranges from pure-play electric automotive manufacturers to manufacturers of integral components used in the creation of the vehicles.

Please note that a live account is needed to trade the share market; you can choose from 6 account types.

Electric vehicle ETFs

Investors who are seeking diverse exposure to the electric vehicle industry could be interested in one of the various exchange-traded funds that are currently available. Depending on investors' goals, ETFs can range from those strictly focused on electric vehicles and their integral components to those that are more broadly focused on innovative technologies. For illustrative purposes, here is a sample of ETFs currently available:

  • Global X Autonomous & Electric Vehicles ETF (DRIV)
  • iShares Self-Driving EV and Tech ETF (IDRV)
  • KraneShares Electric Vehicles and Future Mobility Index ETF (KARS)
  • Global X Lithium & Battery Tech ETF (LIT)
  • SPDR S&P Kensho Smart Mobility ETF (HAIL)

Electric vehicle share basket

Share baskets are mini portfolios of stocks built around a specific theme. We offer, for example, an EV Revolution share basket. Our traders and market analysts sift through data on popular themes and growing trends in the markets and handpick stocks to give you maximum exposure to those themes with a single position.

Our share baskets are designed by our in-house trading team who have selected shares based on their level of exposure to a particular theme, and their ability to capitalize on the growth projections of that trend. Please see below for the breakdown of our EV Revolution share basket, to give you an idea of who the big players are in the renewable energy sector. Our share baskets help provide exposure to all the below companies under a single instrument.

EV basket of shares

Summary of Electric Car Stocks

  • Rapid advancements in technology and global prioritization of reducing emissions mean that the shift toward electric vehicles and green transportation is one that investors should not ignore.
  • Investment approaches range from directly buying shares of electric vehicle manufacturers to more indirect routes such as investing in manufacturers of key materials or components.
  • Investors who are seeking diverse exposure to the electric vehicle industry could be interested in one of the various exchange-traded funds that are currently available.
  • A few electric vehicle companies stand out above their peers as one of the best EV stocks to invest in.
  • With CAPEX.com you can get exposure to the electric vehicles industry through individual stocks, EV funds, and EV Revolution basket shares.

Free trading tools and resources

Remember, you should have some trading experience and knowledge before you decide to invest in electric vehicles. You should consider using the educational resources we offer likeCAPEX Academyor ademo trading account. CAPEX Academy has lots of courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a better trader.

Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.

FAQs

Which are the best value electric car stocks?

These are the electric car stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can serve as a rough measure of a business's value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability. The price-to-sales ratio shows how much you're paying for the stock for each dollar of sales generated.

Best Value Electric Car Stock

Price ($)
Market Cap ($B)
12-Month Trailing P/S
Li Auto Inc. (LI)
25.81
26.7
5.8
NIO Inc. (NIO)
21.05
35.1
5.9
XPeng Inc. (XPEV)
27.59
23.6
7.0

Source: YCharts

Which are the fastest-growing electric car stocks?

These are the electric car stocks with the highest YOY sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share. However, sales growth can also be potentially misleading about the strength of a business, because growing sales in money-losing businesses can be harmful if the company has no plan to reach profitability.

Fastest-growing electric car stocks

Price ($)
Market Cap ($B)
Revenue Growth (%)
Blink Charging Co.
26.46
1.1
224.0
XPeng Inc. (XPEV)
27.59
23.6
210.9
Li Auto Inc. (LI)
25.81
26.7
165.3

Source: YCharts

Which are the electric car stocks with the best performance?

These are the electric car stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.

Electric car stocks with the best performance

Price ($)
Market Cap ($B)
12-Month Trailing Total Return (%)
Tesla Inc. (TSLA)
1077.60
1,114
61.3
Li Auto Inc. (LI)
25.81
26.7
3.2
Plug Power Inc. (PLUG)
28.61
16.5
-20.2
KraneShares Electric Vehicle and Future Mobility ETF (KARS)
35.52
N/A
5.4

Source: YCharts

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.
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