best ev stocks 2022

Auto sales revenues were up 46% year-over-year in the second quarter, and total revenues were up 47%. The company delivered 466,140 cars last quarter, an 83% improvement over the year prior. Electric vehicles might be the future, but most investors think in the present, namely our pending global recession. Most investors shy away from growth stocks because discretionary consumer spending declines during an economic downturn.

Tesla has, thanks to its high market capitalization, the ability to issue shares easily, which gives it access to a lot of growth capital. The EV industry is, at the same time, exciting and highly competitive, and it is not possible to know for sure which companies will be the ultimate winners. In this article, we will showcase a couple of EV stocks that have a lot of potential in the long run, and evaluate the pros and cons. The Global X Autonomous & Electric Vehicles ETF (DRIV 0.14%) invests in makers of electric and self-driving cars. The company is known for its approach to producing commercial electric vehicles. It includes buses, vans and cars built quickly and with lower-that-average capital expenditure at micro-factories.

If you’re looking to add electric vehicle stocks to your portfolio in 2022, here are three top ones to consider. Ford intends to make 40% to 50% of all its vehicles electric by 2030. The automaker wants to become the second-largest electric vehicle manufacturer in the next couple of years. Notably, even if Ford delivers according to its plans, half of its sales would still be internal combustion engine (ICE) vehicles by 2030. You can invest in a greener future with’s Clean Tech Kit. This kit makes investing in the electric vehicle industry simpler.

Exploring The Best Electric Vehicle Stocks: Leading Companies And Innovators

Many believe the current value isn’t reflective of its true worth, while others say they can still see Telsa dominating future industry growth despite recent struggles in sales numbers. The EV maker has also witnessed steady growth in vehicle margin due to an increasing number of deliveries generating cash flows that Nio can use for investments like research and development. These are the electric car stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.

best ev stocks 2022

As explained above, different types of investors will value different things when making investment decisions. I personally do believe that BYD’s stock is the most attractive one right now, due to its strong business growth and inexpensive valuation. Investors should always consider the fact that growth prospects for an industry do not necessarily equate to share price gains for companies that are active in this industry.

Also, electric car manufacturing involves the use of cutting-edge technology, so investors must consider the ability of electric car companies to meet such technological standards. The numbers were in line with the company’s guidance of 18,300 to 19,000 vehicles each month of the quarter. Nio’s performance was considerably better than rival Xpeng, which delivered 13,690 vehicles in August.

Nio’s returns have been relatively subdued, while Tesla has nearly doubled. The company makes a profit while most other stocks in this sector do not, netting earnings per share (EPS) of $3.62 in 2022. Nio is well positioned for aggressive international expansion from a financial perspective. As of Q3 2021, the company reported cash and equivalents of $7.3 billion. An at-the-market offering in November 2021 helped Nio raise $2.0 billion.

“The early stage of the EV boom was a bit of a free for all,” explains Sonia Joao, chief operating officer of Houston-based RIA Robertson Wealth Management. “Interest rates were cheap, and investors had a high tolerance for risk. In an environment like that, it’s not uncommon to see the riskiest bets pay off.” Concerns over valuation, as well as an SEC investigation, have pushed Lucid stock roughly 30% off its high price since listing. Yet the company has had a good start and looks well-placed to grow in the long term. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. What we do know is that countries are introducing laws to help fight climate change.

While Ford still sells gas-powered vehicles, the significant push it is making into the EV space is one that investors should keep an eye on. Silicon carbide semiconductors are Onsemi’s fastest-growing product line. The company sees sales of SiC chips growing at a compound annual rate of 70% through 2027. It expects to grab 35%-40% of the SiC market by 2027, up from 14% now.

With Deliveries Picking Up, What Lies Ahead For Nio Stock?

Workhorse expects to generate as much as $125 million of revenue in 2023, but that will require an enormous ramp-up. Rivian is nowhere near profitable, with a negative gross margin in the first quarter of 2023. It reported a net loss of $1.35 billion on revenue of $661 million.

best ev stocks 2022

NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. The primary issue EVs face is the lack of charging infrastructure in the United States.

Our editors are committed to bringing you unbiased ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines  and the investing methodology  for the ratings below. Overall, XPEV stock is among the best EV stocks to consider for 2022.

Even the presumption that there are surefire winners from the IRA seems overstated to us. But we are old enough to remember the story of Solyndra, a Bay Area solar company backed by the Obama administration over a decade ago. It was supposedly the future, but it went belly up, leaving taxpayers on the hook. An electric vehicle battery plant that received federal funds in 2010 charted a similar course, going from fanfare to furloughs and floundering within two years. Not to point fingers at the Obama administration—pretty much every presidential administration in modern history has made similar foibles.

My 5 Favorite Electric Vehicle Stocks For 2022

The company is investing heavily in electric vehicles to catch up with its rivals. We used Insider Monkey’s database of 943 hedge funds covering their Q investments to determine which electric vehicle companies – pureplay or otherwise – are their favorites. Plus, Tesla is the undisputed king of battery electric vehicle (BEV) sales in the U.S. with 66% of electric vehicle registrations going to Tesla in the first six months of the year. It is losing some market share to GM and Ford (more on them next), but TSLA sentiment remains strong. A bright future for electric vehicles (EVs) sent the stocks of EV companies soaring over the last couple of years.

The demand for new cars is high, but it has positioned itself to survive and grow despite intense competition. Electric vehicle stocks are making a comeback amid an industry-wide shift to battery-powered vehicles. BYD’s established manufacturing capacity and financial strength could help it maintain its lead. The company generated revenue of $30.2 billion in the trailing 12 months. As the year draws to a close, it is a good time to take a critical look at your portfolio.

CATL is a Chinese firm that specializes in lithium-ion batteries with a “dominant market share” in the country, says Lee. “They’re going into Europe with their technology, but the U.S. seems to be the fastest market grower and CATL can’t participate. And if efforts to thaw the U.S.-China relationship begin to pay off, that could open another big market for the company. To date, there are no mutual funds since the EV industry is primarily made up of automotive manufacturers found in many types of mutual funds and ETFs. Some mutual funds have a large exposure to electric vehicles, but they also own a number of non-EV stocks. Countries across the globe are striving to have millions of electric vehicles on the road by the end of this decade.

While electric vehicle charging is relatively easy to commodify, ChargePoint continues to be the leader in this segment. Something will have to take the place of ICE vehicles, and that means there will inevitably be more room for EV sales. Thus, EVs continue to be an attractive investment opportunity. At this point, the only uncertainty is just how quickly EV manufacturers will grow.

Lucid Group

EV companies are expected to create more than 1 million jobs. If U.S.-made electricity is included in the clean energy industry, that also could benefit electric vehicle companies. 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 boost revenue organically or through other means and find growing companies that have not yet reached profitability.

However, Nio continued to lag behind rival Li Auto which delivered 34,914 vehicles for the month, driven by robust sales of its EVs which combine a gasoline engine for range extension. Nio also cut prices on its vehicles by about $4,200 in early June, accounting for close to 10% of the starting price of some vehicles and gbpaud correlation this could have stimulated demand to a certain extent. The electric vehicle industry has experienced strong relative growth in recent years, although from a very low base. Overall, electric vehicles still make up just a couple of percentage points among all the automobiles that are sold every year around the globe.

For the same period, revenue increased by 199.7% to $1.15 billion. Overall, F stock looks attractive and is positioned for further rally in 2022 with EV developments being the catalyst. It is the third-largest holding in the KARS exchange-traded fund, mentioned above.

Such changes will make EVs ever more appealing to consumers and corporations. If you’re looking to add EV stocks to your portfolio, you’ll need a brokerage account to purchase them. Setting up an account is relatively easy and takes about 15 minutes. Once you fund an account, you can research EV stocks and invest directly from your brokerage account. Given these sales numbers, EV stocks have started to attract a lot of investor interest. And the subsidies introduced by the Inflation Reduction Act could boost sales even more going forward.

In particular, Lattice is seeing higher demand for its specialized low-power FPGAs in electric vehicles. Onsemi also partnered with Volkswagen (VWAGY) to supply inverters for use in a next-generation VW electric platform. It also provides technology for fast charging electric vehicles. This is particularly true if you believe in the potential of the auto company’s plans around the Mach-E or its ability to continue to make inroads.

EVs are still viewed as a luxury, even though retail prices have gotten much more competitive, especially when consumers factor in the price of maintenance and fuel. With oil prices all over the map this year, people have every reason to turn to electric vehicles (EVs). However, the mounting concerns of a global recession could impact every company as consumer sentiment wanes over what’s next for the economy. Electric vehicles aren’t only being produced by new car companies. Legacy car manufacturers such as General Motors, Ford, Toyota and Ferrari all have plans to start producing electric vehicles.

Boom in the electric vehicle industry is also aided by government spending, particularly in the Western world and in China. The U.S. government passed the Inflation Reduction Act (IRA) last year which promised an eye popping $370 billion in subsidies for renewable energy and climate investments. Since the U.S. is one of the biggest car markets in the world, this opens the door to domestic firms and those with U.S. based operations to have a solid footing in the country.