EV stock has multiplied In Teslaof the (TSLA) wake up and like electric cars seek to go mainstream – but not all are created equal. Some car stocks are more ready than others for an electric future. Here are the top-rated EV manufacturers.
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Best EV stocks to buy or watch
The charts of most EV stocks are still under stress. Overall, both established automakers and startups are betting speculatively on the development of electric vehicles, which is considered a nascent field. Growth stocks lead the bear market in 2022 due to rising inflation and interest rates.
Even Tesla stock continues to rally. It’s hard to find an EV stock that has a good mix of basic and technical right away. Excluding Tesla, here are our picks based on EV sales and expansion plans.
Traditional automakers continue to ramp up production of electric vehicles (EVs), moving away from petrol and diesel vehicles. By 2025, General Motors is spending $35 billion to develop electric and self-driving cars. It aims to launch 30 new EVs worldwide by that time. By 2030, GM expects half of its global sales to be battery-powered cars.
But 2023 could be a turning point: Three all-new electric models will come from GM’s mass-market Chevrolet brand. Those new electric vehicles include all-electric versions of the Chevrolet Silverado, Chevrolet Blazer and Chevrolet Equinox. The Chevy Silverado pickup truck is GM’s best-selling vehicle. Blazer and Equinox are popular SUVs. In the minus column, GM has struggled to ramp up production of new EVs, including the Hummer truck and Lyriq SUV, even though its older-generation Bolt EV is selling well.
By 2022, Ford is the (far) #2 electric vehicle manufacturer in the US after Tesla. Ford electric vehicle sales more than tripled in December 2022 and more than doubled throughout the year. The company says the all-electric F-150 Lightning truck, Mustang Mach-E SUV and E-Transit truck are in strong demand as supplies dwindle. A new electric crossover for the European market is likely to launch in 2023.
By 2025, Ford plans to spend $30 billion to develop and scale electric vehicles. By 2030, Ford expects half of its global sales to be electric vehicles. The new Motor e business will focus on electric cars. Ford also owns shares of Rivian.
Stellantis . Stock
parent company Chrysler Stellantis (STLA) has a Composite Rating of 71, an EPS Rating of 66 and an RS Rating of 89.
By 2030, Stellantis, which also owns Fiat and Peugeot, seeks to make 100% of sales in Europe and 50% of sales in the US all-electric (also known as electric vehicles). battery or BEV). It is targeting 75 BEV models and global annual BEV sales of 5 million units by the end of the decade.
In 2023, Stellantis will launch The first all-electric Jeep. Jeep says it is expected to be available in the US by 2024. The iconic brand already offers plug-in hybrid Jeep models.
Once seen as a laggard in electric vehicles, Stellantis has ramped up electrification starting July 2021.
Nio (NIO) has a Composite Rating of 9, an EPS Rating of 1, and an RS Rating of 10.
Things are starting to look good for the Chinese electric-car startup after a rough couple of years. In 2022, Nio increased electric vehicle sales by 34%, with a stronger second half offsetting weakness in the first six months of the year. Sales in the final quarter of 2022 jumped 60%, hitting monthly records in November and again in December, even with Covid disruptions later in the year. Nio launched three new models last year, including the popular ES7 SUV and the ET5 sedan. This year brings many new and refreshed models.
Nio is sometimes called China’s Tesla for its high-tech, premium EV models, although Nio plans to introduce cheaper sub-brands. Chinese start-ups are Expansion in Europe also.
While the company’s new product line looks to be a good fit for China’s fiercely competitive electric vehicle market, Nio remains unprofitable. Tesla’s price cuts could hurt Nio’s demand and profits.
Li Auto shares
Automobiles (LIFE) has a Composite Rating of 22, an EPS Rating of 3, and an RS Rating of 33.
Another Chinese electric vehicle startup, Li Auto had a particularly strong 2022 despite supply challenges. In 2022, Li Auto increased EV sales by 47%, outselling Nio. New models such as SUV L9 and L8 are selling well. Li set a monthly delivery record in December 2022, with both the L9 and L8 selling over 10,000 units. The company’s performance in a challenging year has won praise on Wall Street. Li Auto targets the high-end market, but its upcoming L7 and L6 models will move down to the affordable luxury segment.
So far, Li Auto has not produced an all-electric vehicle. Li specializes in “extended range” electric vehicles, which use small gasoline engines to increase driving range.
Like the Nio, Li Auto boasts a new product line with many new models coming soon. Li Auto has been consistently profitable, with losses in recent quarters amid the Covid pandemic and paradigm shift. Analysts expect a profitable 2023, although the EV price war could be a factor.
Should EV stock be bought?
Companies with two characteristics are often the best candidates for stocks to buy and watch CAN SLIM . Guide. First, they need a good track record of earnings growth. Second, they must be technically strong and forming bullish chart patterns.
EV battery reserve, EV charge reserve
The growing universe of EV stock doesn’t end with automakers. A host of other companies offer automotive batteries, car charging stations, electric motors, and other electric vehicle-related products. Among them are point fee (CHPT), tram (EVGO), Flashing Charger (BLNK) and Wall box (WBX).
Magna (MGA) provides battery case and electronic transmission. It is also an EV contract manufacturer.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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