Tricks For Getting Started in EV Stocks

Are you looking for a way to invest in EV stocks, but you aren’t sure how to do this? Let’s consider what’s available for you to do this.

With so many companies getting into the EV market, you might find that investing in companies associated with electric vehicle development brings some traditional names such as Ford and GM into the mix. This means you’ve got to understand the new market and all the places where you might find investment opportunities. While there could be new ways to make money in the stock market as more electric cars hit the road, here are a few great ways to get started right now.

Can You Invest Directly In the EV Company?

Yes, of course, you can. We’ve heard how quickly the price of a share of Tesla stock has risen over recent years. More new companies, such as Rivian, continue to enter the market and give us a great way to get involved in electric vehicle investments. Buying stock in a company directly means you’re putting your money and faith into that single company. This is the most traditional form of investing, and it’s something you can do across all industries.

Invest in Companies Associated with Electric Vehicles

Another way to get involved with EV stocks without putting your money into one single car company is to invest in the suppliers. Whether you find a company that supplies the batteries, such as Plug Power and put your money in that company or looks at the makers of the charging systems or other components needed to make EVs run, you’ll invest in a supplier. Why is a supplier a good option? Many suppliers provide the necessary equipment to several automakers, making them a safer option than some auto brands.

EVs Have Grown to Have Exchange-Traded Funds

When you want to avoid putting all your money into one company, an Exchange-Traded Fund could be the ideal option for you. These funds typically include several companies in the same industry and invest in them across the board. This allows your money to spread out more and be in several baskets simultaneously, while technically only in one fund. The NASDAQ Clean Edge Green Energy Index Fund is an example of one of these ETFs. This is an excellent way to get involved in EV stocks without your money being tied up with only one brand or company.

What are Some of the Best EV Stocks to Buy?

You should do your homework and study the history of a company, but EV companies are relatively new, and some will be riskier than others. With that in mind, here are a few companies that might be a good investment.

Tesla

Tesla continually offers stock increases and dividends that make investors smile. We often see this company in the news, which is by the design of the CEO, Elon Musk. Typically, Tesla stock proliferates, and with each new vehicle offering, it seems to go higher and have more shares offered than ever before. Even though Tesla has been around for twenty years, its place in the automotive market is still written and understood. As the leader in electric vehicles, the price per share might be high for Tesla, but it could be a worthwhile investment.

Ford

As mentioned, you’ll see some familiar names among the EV brands when we look at which companies to invest in. Ford now offers a pair of EV models and looks to add many more over the next few years, making it one of the best companies you can invest in when you want to get into the EV world. The Ford Mustang Mach-E and Ford F-150 Lightning pave the way for future models, which are only limited by the imagination. We could see an entire lineup of Ford EVs in the future. Don’t you want to get in on the ground floor of this stock? Even though Ford is one of the oldest companies in the auto world, the price per share is typically affordable, making it easy to get involved with Ford.

Li Auto

We want to see stocks that prove they can perform and give us at least some good trending information. The China EV company Li Auto does this exceptionally well. The Li-One SUV is an excellent vehicle that sells well in the Asian markets. You might have some hesitations about investing in a Chinese company, but that is a personal preference. If you’re looking for a stock that does well and shows strong potential, Li Auto could be a good place to park some of your money.

BYD

BYD is the Chinese battery giant, and it shows continued growth as the number of EVs sold in China continues to go up. If you think that the goals in America are aggressive, you should read about how many EVs China expects to sell. This company supplies the batteries to most EV automakers, making it one of the EV stocks that could return some severe profits for you.

Watch Newer Stocks Before Investing

Sometimes, you’re better off waiting to invest in newer companies to see if they perform well or eventually offer an IPO for you to buy some stocks. Because most EV companies don’t have a proven track record of performance or sales, you’ll want to sit back and see how they perform before you decide to buy. If you can find some of these stocks in the ETF market, you could invest a little and benefit from some proven reserves within the fund to offset some of these new names. Some that you could watch include:

• Fisker
• Canoo
• Faraday Future
• Lordstown
• Xos

Some of these companies haven’t begun producing electric vehicles yet, making them names to watch. Could one of these new companies become the next Tesla and give you the EV stocks that help you make a lot of money? Only time will tell.