Electric cars that are often referred to as EVs, are automobiles with electricity power rather than Gas-powered engines. Electric vehicles don't require any fuel like gasoline or diesel. This does not need to be explained to you. Everyone in 2022 knows about electric vehicles and how they have begun to gain popularity in the market. But what about electric car stocks? Electric cars stocks are the stocks that are of companies that focus primarily on manufacturing electric cars.
Vehicle company and the Electric Vehicle Industry
Companies that manufacture the components used in electric cars like batteries or autonomous vehicle systems are also considered part of the electric vehicle industry.
Even all the major car companies like Ford General Motors are developing and manufacturing at least one model of an electric vehicle. They are not usually considered electric car companies because their primary products are not electrical, and the best electric car company stocks are generally the companies that are already producing and selling electric cars rather than just simply planning to do so in the future. You can take a look at the three most popular electric vehicle stocks in the market today.
1. Tesla: An Industry Leader
An Overview on Tesla:
Every list of electric vehicle stocks needs to increase the great Granddaddy of all of them, Tesla, obviously. Ellon Musk's electric car company had a great big Banner in 2021. Tesla had delivered more than 936,000 vehicles, as the sales blew by 71% . Most of these vehicles were Tesla Model 3 and Model Y and its the same for 2022 so far.
The company's new gigafactory, basically gigantic factory has been inaugurated on March 22, 2022 in Germany which is expected to produce up to 500,000 vehicles annually. Also, Tesla’s entry to India has been in talks for a long time but there has been some ambiguity in the final decision.
Coming back to the productivity and revenue, It has been producing a streak of quarterly net profits and robust sales. The vehicle then windfall from sales of regulatory admission credits has been a boon. On the 31st of August, 2020, the stock split 5 for 1, and on the 21st of December 2020, the company was added to the S&P 500. And on March 28, 2022 Tesla has announced about asking its shareholders the permission for a second split.
Bottom Line on Buying Tesla’s Stock
Tesla's success has contributed to an epic increase in the price of stock making. Tesla stock increased by more than 750%, which raised questions about the company's lofty valuation. Inspite of that, in 2021 China became the fastest-growing market for Tesla which helped it conquer the largest share of the EV market.
Irrespective of all of the downfall it ever faces, Tesla still stands number one on the list for electric vehicle stock.
2. Nikola
An Overview on Nikola:
Trevor Milton founded Nikola to manufacture both pure electric and hydrogen-electric trucks. Besides naming his company after Nikola Tesla, Milton has generated controversy by fuelling directly with Ellon Musk on Twitter. The cooler has been in the news because it became a public company by merging with the special purpose acquisition company. Nikola begins taking early pre-orders for a badger pickup despite not expecting to begin production in late 2022.
Milton steps down in September 2020 after a short-sellers report accused the company of fraud. The company was put on hold and eventually canceled the much-anticipated partnership with General Motors. It also had to cancel a partnership with waste hauler Republic Services. To develop fuel cell power garbage trucks, they had to cancel the partnership. Nikola eventually announced that it would not produce the badger pickup and returned all the deposits. The company's stock price, which was above $80 at its peak, declined to below $20.
Bottom Line on Buying Nikola’s Stock:
It really might not be a good company to invest in, but it provides an excellent example of how investing in electric vehicle companies can be risky. Electric vehicle companies that startups can have no manufacturing histories and Limited financial and technical data available out in the market. Nikola has no meaning for revenue, but still, its net worth is $2.49B today.
3. NIO Chinese SUV Specialist
An Overview on NIO:
The Chinese electrical carmaker NIO has publicly traded on the 5th of September 2018, but there are several other initial public offerings by other Chinese electric car makers like Li automotive and Xpeng that have increased investor interest. Within the first 3 months of 2021, it delivered over 20,000, representing more than a 400% increase. It has already delivered about 192,838 electric cars, including over 94,000 in last 12 months. The company is focusing on the Chinese electric SUV market and competing with Tesla model Y and crossover SUV. And in China, the company has been able to undercut Tesla's price because the company's vehicles are eligible for Chinese government subsidies and like the cars that are made by Tesla.
As of 2022, the company so far has globally sold over 25,000 electric cars.
Bottom Line on Buying NIO’s Stock:
Given the popularity of Nikola and China and the cutting down of prices in the country, this brand has seemed to hold top popularity when two electric vehicle stocks are in the market. It can surely be an investment-worthy stock.
Apart from Tesla topping the list on EV stocks, some EV stocks are doing well in the market.
Other EV Stocks for 2022
The Best Value Electric Car Stocks:
• XPeng Inc.
• Li Auto Inc.
• NIO Inc.
The Fastest Growing Electric Car Stocks:
• XPeng Inc.
• NIO Inc.
• Blink Charging Co.
The Electric Car Stocks with Most Momentum:
• Ford Motor Co. (F)
• Tesla Inc. (TSLA)
• Li Auto Inc. (LI)
• Russell 1000
• S&P 1500 Automobiles Industry Index
The electric car sector is poised to benefit under any administration. Many companies participating in the electric vehicle sector are going public which means more space for investors to invest and diversify the portfolio in the selective market.
Conclusion
The electric car industry differs from the traditional automotive industry. It is all because it is so new and fast-growing. Until a few years ago very few companies used to manufacture electric vehicles, but now every major automaker in the world is developing or producing an electric vehicle. The major interest in electric vehicles is so recent, and the only established industry leader in this market is Tesla. The startup electric vehicle companies can compete fairly well with the traditional automakers for electric vehicle market share making it difficult to discern which companies will ultimately dominate the electric car market.
