The electric auto industry is comprised of companies focused on the manufacture of electric cars, trucks, vans, and commercial vehicles, as well as companies that offer electric automobile parts and services. Though some traditional automakers also produce electric vehicles (EVs), this article focuses on companies considered to be largely pure-play EV manufacturers. The electric car industry is young and growing quickly. Tesla Inc. (TSLA) is one of the more familiar names, but there are others, such as Workhorse Group Inc. (WKHS) and Arcimoto Inc. (FUV), that are exhibiting rapid growth.
More change may be ahead for EV makers. China's industry and information and technology minister has said that there are "too many" electric car makers and that the government will encourage consolidation. A large number of electric car makers are headquartered in China.
Electric car stocks, represented by the KraneShares Electric Vehicle and Future Mobility ETF (KARS), have slightly outperformed the broader market over the past year. KARS has provided a total return of 26.0% over the past 12 months, just above the Russell 1000’s total return of 24.4%. These market performance numbers and all statistics in the tables below are as of Jan. 6, 2022.
This article contains the top three electric car stocks with the best value, the fastest growth, and the most momentum, respectively.
On Nov. 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act. The bipartisan infrastructure bill authorized $1.2 trillion in spending, which includes:
The legislation is good news to EV manufacturers and will help deploy EV chargers along highways and within communities where people live, work, and shop. The legislation is part of President Biden’s goal of accelerating EV adoption by building a network of 500,000 EV chargers nationwide.
These are the electric car stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in 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.
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 on money-losing businesses can be harmful if the company has no plan to reach profitability.
These are the electric car stocks that had the highest total return over the past 12 months.
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
Reuters. "China to Consolidate Overcrowded Electric Vehicle Industry – Minister." Accessed Jan. 9, 2022.
YCharts. "Financial Data." Accessed Jan. 7, 2022.
The White House. “Updated Fact Sheet: Bipartisan Infrastructure Investment and Jobs Act.” Accessed Jan. 9, 2022.
XPeng Inc. "XPeng Reports Third Quarter 2021 Unaudited Financial Results." Accessed Jan. 9 , 2022.
Romeo Power Inc. "Romeo Power Announces Third Quarter 2021 Financial Results." Accessed Jan. 9, 2022.
Blink Charging Co. "Form 10-Q for the quarterly period ended September 30, 2021," Page 2. Accessed Jan. 10, 2022.
Blink Charging Co. "BLINK CHARGING ANNOUNCES THIRD QUARTER 2021 RESULTS." Accessed Jan. 10, 2022.
Reuters. "Tesla recalls almost half a million electric cars over safety issues." Accessed Jan. 10, 2022.
Tesla Inc. "Tesla Q4 2021 Vehicle Production & Deliveries." Accessed Jan. 10, 2022.
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