The rise of electric vehicles presents many impressive opportunities to invest in automotive stocks. Check out which stocks could be good choices.
Are the EV lines blurred? Some brands offer electric vehicles and traditional models, while others focus entirely on one or the other. If you’re looking for stocks to invest in that offer the opportunity for future growth, EV stocks make sense. The automotive world should be filled with these alternative-fuel vehicles, bringing the future to the market. Let’s look at some of the best EV stocks and see why they make smart investment options.
Tesla (TSLA)
If you mention electric vehicles, Tesla is usually the first name that comes to mind. This EV company is the biggest in the market, and its has recently become one of the largest public companies in the world. Telsa brings incredible value to the investment space, but this company faces some volatility, with prices rising and falling, similar to tech companies. It doesn’t help that CEO Elon Musk is such a polarizing public figure. Regardless, Tesla could be a good choice when you’re looking for a smart investment.
Ford (F)
Ford isn’t just an electric vehicle company, as many are well aware, but it offers an excellent investment opportunity when searching for great automotive stocks. Ford is one of the longest-running companies in the auto industry, founded by Henry Ford in 1903. As you would expect, Ford created the most popular electric pickup truck, the F-150 Lightning, making it an excellent choice when you want a proven winner that also offers EVs. The Ford electric profile is growing; will you be part of that growth?
Li Auto Inc. (LI)
Li Auto Inc. is a Chinese EV automaker focused on luxury SUVs with high profit margins. This could mean slow but steady growth in the automotive market, translating to steady profits. Li has posted impressive numbers for the past few years, offering good revenue returns and sales year after year. Investors should be cautious when choosing Chinese stocks because of potential increased political risks; otherwise, Li Auto could be a good stock for investment. If you’re looking for steady growth, this could be the right company for you.
Rivian Automotive Inc. (RIVN)
For the past few years, Rivian has been up and down. There was a time when it looked like the company would need to fold up and close, but a new massive assembly plant changed that. This company is still one to be cautious about, especially after losing much of its initial valuation quickly. The sales numbers are strong, and with more commercial contracts for delivery vans, Rivian should be on an upward swing. Now might be the time to invest in this electric vehicle company, but keep in mind it could be one of the most volatile automotive stocks for the next several months.
XPeng Inc. (XPEV)
Another top-performing Chinese EV automaker is XPeng. This automaker builds SUVs and sedans for the average customer, making it one of the most prolific names in China. In 2022, XPeng delivered 120,757 EVs to the market, which was an increase of 23% compared to the previous year. Despite increases in production and delivery, the stock price dropped by 80% but has recently bounced back. This could be a good choice when you’re looking for an EV stock.
ON Semiconductor Corp (ON)
Automakers aren’t the only stocks you can invest in when looking for the right EV stock. ON Semiconductor Corp makes the chips required for all vehicles, including EVs. Instead of focusing only on electric vehicle names for your automotive stocks, think about the opportunities to gain experience your money with a company that builds parts for these cars. The ON stock increased over 50% during the first three quarters last year and continues to be a promising choice.
LiveWire Group Inc (LVWR)
LiveWire is the electric motorcycle arm of Harley-Davidson, and it’s now traded as its own stock in the market. If you’re looking for an exciting automotive stock in the electric vehicle world that’s also part of a traditional company, LiveWire could be the right choice. This stock has been on a roller coaster ride, with a quick decline followed by a 38% increase in revenue and sales. This EV stock could be a great way to get into the auto world and be part of what Harley-Davidson brings to the table.
These are seven electric vehicle names that could be the right automotive stocks for your investment. Which stocks will become part of your portfolio?
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