Electric cars are the present and future of transportation. Similarly, electric car stocks are the present and future of the stock market. With the increase in the popularity of electric cars, we are witnessing an increase in people shifting from their existing cars to the electric car option. Also, there is a huge number of options available now as several automobile companies have entered the EV market to offer their electric cars such as Nissan Electric Car, Volvo Electric Cars, Chevy Electric Car, Moke Electric Car, Honda Electric Cars, Kia Electric Cars, and leading all of them is Tesla.
In this blog, we will discuss 9 electric car stocks that will not only help you to build a strong portfolio but will also help you invest better.
Tesla needs no introduction. Those who have been following innovations and the electric car market understands how Tesla has revolutionized the electric car industry with its innovations.
In 2021, Tesla delivered 936,000 vehicles, which included Model 3 Sedans and Model Y crossover SUVs. As per multiple reports, the company is building new gigafactories in Berlin and Austin. With its recent success, Tesla is one of the most valuable car companies in the world which increases the value of stock prices. Tesla’s stock prices have increased by more than 1300 in over last three years. Similar to any other automaker, Tesla is also facing a few supply chain issues which have caused a delay in the launch of the most-anticipated Cybertruck and Roadster. Also, to all the Tesla fans, the company is not planning to introduce any new vehicle this year.
General Motors need no introduction. General Motors are one of the leading car manufacturers in the world. The U.S automakers offer numerous cars ranging from budget cars to luxury cars. With the ongoing EV trend, the company is ahead of its competition with high investment and innovations. According to several reports, the majority of EV startups are struggling to make profits. However, in the latest report, GM reported $1.7 billion of net income in the fourth quarter. Also, the company is planning to invest $35 billion through 2025.
Over the last few decades, China has emerged as one of the most powerful countries with innovative technology and a booming economy. Similarly, Chinese stocks have shown strong growth in the past years. Also, with the new and rigorous account standards, Chinese stocks are at the risk of getting delisted by U.S. regulators. In January, Chinese EV maker Nio reported a growth of 34%.
In July 2021, Lucid went public through a special purpose acquisition company merger. The company is compared with Ferrari NV and its first model, the Air sedan, and Gravity, an SUV that will be strong sellers in the market. In December 2021, the company raised more than $2 billion from a convertible note offering.
In our list of electric cars, Proterra is the only EV company that produces commercial EVs. The company focused on the commercial vehicle market. Also, it is one of the leading providers of fully transit buses and EV powertrain systems. Proterra has developed commercial fleet chargers. Looking at the current growth, it is predicted that the company will have positive growth and an increase in revenue in the coming years.
MR Materials is one of the crucial players in the supplier of raw materials for EV and wind power generation markets. The company owns and operates a mining and processing facility in the western hemisphere. For the US government, the rare earth mines outside of China are considered strategically vital.
Teck Resources Ltd.
Focused on copper, metallurgical coal, and zinc, Teck Resources is basically a mining and metals company. There is a heavy dependency of EVs on copper as compared to combustion engine vehicles allowing Teck to have a stronger hold. In 2022, the company is planning to open to steel-making coal and energy businesses. Also, it is estimated that the company could get assets ranging between $18 billion and $20 billion.
The automobile industry is generally divided into three different segments; budget level, midlevel, and the high-end segment. Now, it is time that we can see a similar pattern in the electric car industry, Chinese EV startup, XPeng caters to midlevel and high-end segment markets. In 2018, the company launched its G3 SUV, and in 2020, the P7 sports sedan. In January, XPeng reported a growth of 115% in vehicle delivery. In 2022, the company projects to grow by 94.4% and it is planning to launch its new G9 smart EV and a facelift version of the P7.
Li Auto Inc.
It is one of the leading Chinese EV makers in China. Li Auto was the first company to sell extended-range EV. Li-One is one of the first models of the company and is a large SUV. In January, the company reported a 128% vehicle delivery growth. In 2021, the company is planning to launch its full-sized SUV model X01. In the coming years, the company has planned for four new models.
So, why invest in electric car stocks?
With the rise in petrol prices and continuous harm to the environment, we have reached a point where we need to search for a better alternative. Electric cars are the present and future of transformation. A few years back, there were only a few electric vehicle manufacturers. However, today we can see every major automobile manufacturers are in the market with their latest technologically advanced car. Also, the electric automobile has recently stood by with industry leaders like Tesla who have shown how to make a real difference.
This allows investors to expand their portfolio in various electric car stocks and get the added advantage of the newly set up industry. Also, as this is a new industry, several unpredictable aspects make the electric car industry a bit risky.