Press "Enter" to skip to content

6 EV Stocks To Watch: What You Need To Know Before Investing – GOBankingRates

Banking
Learn
Savings Accounts
Checking Accounts
Certificate of Deposit
Money Market Accounts
Credit Unions
Loans
Interest Rates
Reviews
Get Started
Best Savings Accounts
Best Checking Accounts
Best CD Rates
Best Money Market Accounts
Best National Banks
Best Online Banks
Best Regional Banks
Best Credit Unions
Best Bank Promotions
Find The Best Bank For You

Investing
Learn
Stocks
Bonds
Cryptocurrency
Brokerages
Funds
Real Estate
Your Strategy
Reviews
Get Started
Best Online Brokerages
Best Investing Apps
Best Mutual Funds
Best Stocks for Beginners
Best Robo-Advisors
Cheap Stocks to Buy New
Best Cryptocurrency to Buy Now
Next Big Cryptocurrency
Find The Best Bank For You

Retirement
Learn
401k
IRAs
Social Security
Annuities
Savings Advice
Get Started
Best IRA Providers
Best Roth IRA Providers
Best 401k Companies
Best 401k Plans
Retire Early
Best Online Banks
Best Regional Banks
Best Credit Unions
Best Bank Promotions
Retirement at Any Age
Retirement at Any Age

Credit Cards
Learn
News & Advice
Rewards
Retail
Business
Reviews
Get Started
Best Credit Cards 2023
Best Reward Credit Cards
Best Balance Transfer Credit Cards
Best Cash Back Credit Cards
Critics’ Choice Credit Cards
Best Travel Credit Cards
Best Airline Credit Cards
Check Credit
Raise Credit
Repair Credit
Find The Best Card For You

Live Richer™
Learn
Saving Money
Money
Shopping
Budgeting
Home Tips
Side Gigs
Net Worth
Financial Planning
Taxes
Travel
Get Started
Create a Budget
Tackle Debt
Know Your Net Worth
Find a Side Job
Your Money Champion
Pay off Your Mortgage
Live Richer Podcast
Find The Best Bank For You

Trending
Trending Topics
News & Events
Crypto on the Go
Travel Rich
Filing Taxes 2022
Back to School Finances
GEN Z: The Future of Finances
Small Business Spotlight
Financially Savvy Female
Economy Explained
Top Money Experts
Retirement at Any Age
GOBankingRates Newsletters
Retirement at Any Age

Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products.
In early 2022, as gas prices rose, electric vehicle registrations also surged. New EV registrations totaled 158,689, or 4.7% of all new car registrations in the U.S., according to data from Experian reported by Automotive News.
Read: Looking To Diversify In A Bear Market? Consider These 6 Alternative Investments
This growth is promising for those looking to invest in the industry. A look at sales totals on EVs in the U.S., with Tesla’s four models dominating the top 10 list, can point you in the right direction. Especially after the stock’s split in August 2022, Tesla is one of the best values in EV stocks if you’re looking for a long-term investment.
But there are many other EV stocks also showing promise right now – encompassing both domestic and international EV manufacturers and one conventional auto manufacturer heavily vested in EVs right now. We also included one EV ETF for more risk-averse investors seeking to invest in the EV market while maintaining a diversified portfolio.
EV stocks are appealing for their growth potential, as well as to investors seeking to support sustainable companies. Stock investing should not be an emotional play, but it is fun to invest in brands you believe in and, in nearly every case, EV manufacturers are seeking to build a better, more eco-friendly world with their technology solutions.
When you’re evaluating EV stocks, as with stocks in any industry, it’s important to look at the company’s growth potential vs. its current value. Look at the company’s cash reserves, profitability, and the company’s fundamentals.
Tesla is the undisputed industry leader when it comes to electric vehicle sales in the U.S. in recent years, with 56.7% of sales in 2021 going to Tesla’s four models, according to CleanTechnica.org.
Trading at roughly $277 a share in late September 2022, Tesla represents a tremendous value after its 3-to-1 split. Analysts give Tesla a median 12-month target of $329.17, with a high estimate of $526.67 and a low of $83.33. Tesla stock has remained a “buy” amongst the majority of analysts for several months, even prior to the split.
A legacy automotive manufacturer with a solid history, Ford trails behind Tesla in EV sales by orders of magnitude. Even so, the Ford Mustang Mach-E, which hit showrooms in December 2020, was ranked the third best-selling EV, right behind Tesla’s affordable Model Y and Model 3 cars, in 2021. Ford’s F-150 Lightning all-electric pick-up truck also shows promise, especially since Tesla has yet to deliver on its much-publicized — and highly anticipated — Cybertruck.
Facing supply chain struggles and inflation Ford delivered a lackluster quarterly report for the third quarter of 2022, which caused the stock to plummet. Currently trading at just over $12 on September 26, 2022, the stock has a price target of $18.28. It yields dividends of $4.87%, which can make it desirable for investors seeking income from stocks they hold. According to MarketBeat, the stock has 7 “buy” ratings, 10 “hold,” and only three analysts recommend you sell now.
Nio, a Chinese EV manufacturer specializing in luxury, autonomous vehicles, was recently named “top China EV pick,” by a Deutsche Bank analyst.
The upcoming launch of the midsize ET5 electric sedan, along with the release of the ET7 full-size sedan and the ES7 electric SUV in 2022, has created positive vibes for the company amongst investors. The existing ES6, ES8, and EC6 continue to garner strong sales in China. These models are expecting upgrades over the following year, which will also bode well for sales.
NIO stock continued to rise for the fourth consecutive season, Investors.com reported. It’s still down 51% off its 52-week high, however, putting it firmly in “buy” and “hold” territory.
NIO’s main rival in China is XPENG Motors, which produces the G3 SUV and P7 four-door sports sedan. XPeng’s sales jumped 96% year-over-year, compared to NIO’s sales increase of 28%. Given supply chain challenges and growing competition, this is nearly phenomenal growth for both companies.
From an investor’s standpoint, there is a lot to like right now about XPeng. The new G9 SUV, which the company is claiming to be “the world’s fastest charging EV,” according to Electrek.co, is expected to begin shipping in China in October.
In spite of the company’s promising future, shares have fallen 73% since early 2022. Chairman and CEO He Xiaopeng increased his stake with a $30 million purchase of shares. Trading for just under $15 on September 26, 2022, and rising after Xiaopeng’s purchase, Xpeng has a moderate buy rating and a price target of $36.32. It might be wise for investors to get in before the G9 begins shipping.
With more than 20,000 charging station locations, ChargePoint is the largest and most open electric vehicle charging network in the world. It currently operates in 14 countries, according to SeeklingAlpha.com, and including across the U.S. and Europe. ChargePoint has helped EV drivers collectively traverse more than 158 million miles.
Even so, the company’s stock ChargePoint stock has dropped under $15 lately, after hitting an all-time high of more than $46 in December 2020. SeekingAlpha.com says the company has a “long runway for growth,” however, which means you’ll be getting shares “on sale” right now. The stock is recommended for growth investors with a long-term horizon. And, if you follow the investment advice of Warren Buffet, you don’t want to hold any stock for 10 minutes that you wouldn’t hold for 10 years.
That longevity is one element that makes the EV market, in general, so enticing. And ChargePoint is one to buy or hold, right now, in the eyes of investors. MarketBeat analysts give it a “moderate buy” rating, with 10 analysts saying buy and another 4 saying hold. It has a consensus price target of $21.13 and plenty of room for growth.
If you’re interested in investing in the EV market but prefer to steer clear of taking a chance on one company, an ETF is a way to build a diversified portfolio around a strong and rapidly growing industry. Save time and avoid sifting through all the options of EV manufacturers, EV charging station suppliers, or companies who create components like batteries or chips with an exchange-traded fund like IDRV, instead.  
IDRV, part of iShares Megatrend ETFs, tracks the stocks of companies heavily involved in the EV and hybrid electric vehicle industries, including Tesla, Nio, Rivian, Apple, Ford, Toyota and component manufacturers Qualcomm and Samsung. Its holdings are diversified across 119 companies, predominantly involved in the manufacture, sale, or support of EVs and autonomous vehicles.
U.S. News & World Report gives IDRV a high-ranking in the industrial sector, calling it a “Best Fit” fund in the category. The fund has net assets of $414,608,152 and is currently trading at just over $35 per share.
Once you’ve done your research on your favorite EV companies, as well as those showing promise in the industry and in related industries, you can purchase shares through an app from almost any stock brokerage.
Pay attention to the fees and commissions they charge, as well as account minimums, when you choose a brokerage. Many stock trading apps offer commission-free trading. If you are interested in ETFs or foreign stocks, you’ll want to make sure you can trade those on the platform you choose, as well.
Investing in EV stocks is a way to support future sustainability efforts while building a portfolio with plenty of room for growth.
Best Tech Stocks
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Sept. 26, 2022, and subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
Share This Article:

Sponsored Links by Zergnet Zergnet
Every day, get fresh ideas on how to save and make money and achieve your financial goals.
Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products.

Sign up for our daily newsletter for the latest financial news and trending topics.
For our full Privacy Policy, click here.

source