Electric Investing: The Best EV Stocks To Keep An Eye On
Consider yourself an investor or have an interest in EVs generally? If you answered yes to either of those questions, then you’ve come to the right page, as we break down the best EV stocks to follow today (2021).
Some of you reading this might have invested in Tesla (TSLA) already, but we’re going to be covering a wide base here — we aren’t limiting our picks to electric car stocks either.
You’ll find quite the mix below. A mix that includes some of the best electric aircraft stocks out there.
That’s the great thing about the EV market: you aren’t limited to one type/category. For example, there are companies dealing in electric scooters that look rather promising.
Remember, with the best EV stocks to follow, you aren’t obligated to buy in straight away.
After all, patience is a virtue, and some electric vehicle stocks will only mature over time and are currently unprofitable.
Let’s dive in.
Invest Because: NIO is establishing a foothold in the EV market and plans to enter Europe soon.
NIO is an EV company generally associated with Tesla when investing is mentioned.
You could call them different sides of the same coin.
Last month alone, NIO delivered over 8,000 vehicles, setting a new record (116% increase compared to last year).
NIO has more than fixed its funding problems as of April 2020, and things are looking up for the company from a business perspective.
Currently, NIO is bouncing both up and down. Last week it shot up by 3.5% and then back down nearly 5% shortly after. It’s difficult to say why, but we assume it’s to do with concerns surrounding expected deliveries.
We expect volatility to find some sort of stability as the year rolls on.
Moreover, NIO is currently prepping itself for a European launch. As of March, the company has more than $7 billion in cash on the balance sheet to fund these expansion plans.
Norway is first on the list, with a potential UK launch looming off in the background.
Electric car stocks like NIO will almost always be a conversation starter as one of China’s leading automakers.
Like we said, NIO is a lot like Tesla in that everyone has an opinion on them in terms of investing.
Joby Aviation (RTP)
Invest Because: Joby has an established reputation and has outlined a future EV roadmap.
Joby Aviation only began to list on the NYSE from February of this year after a merger with Reinvent Technology Partners, if you can believe that.
If you want to talk about the best EV stocks, an argument must be made for Joby Aviation.
A company like Joby has been around for quite some time, having spent a decade developing eVTOL aircraft. In fact, the aviation company has ran over 1,000 test flights to date — Joby happens to be one of the most sought-after names in the electric aviation space too.
Furthermore, Joby Aviation acquired Uber Elevate (yep, that Uber), a service looking to take ride-hailing to the skies within the next few years.
Joby is also the first company to be granted approval from the US Air Force for an eVTOL aircraft.
Needless to say, but Joby has a lot in the pipeline and could prove a worthy investment once these projects are up and off the ground.
Invest Because: Canoo will soon release its highly anticipated Lifestyle Vehicle.
Canoo is an electric vehicle startup based in America.
Unlike other companies, Canoo makes electric vehicles that look incredibly futuristic.
The company was founded in 2017, which doesn’t seem that long ago, but this hasn’t stopped its growth from an electric car stocks point of view.
Currently, the company is preparing for the launch of its Lifestyle Vehicle — it actually saw a boost after unveiling the pricing of said vehicle.
Canoo has multiple EVs in development courtesy of early renderings/descriptions found on its website — take a look.
You’ll no doubt have your favourite of the lineup (ours is the Canoo Pickup Truck).
Moreover, the company announced it would build a new factory outside of Tulsa, Oklahoma, to manufacture future vehicles. An announcement like this is reassuring as it almost guarantees they’ll be around for a while yet.
Most startups come and go just as you’ve learned their names.
In the month of June alone, Canoo’s stock jumped by roughly 10% and should continue to rise as we edge closer to 2022.
This is an example of a company riding a wave of positive momentum.
Invest Because: The company are investing in aviation and other energy markets.
Some might find it surprising that Rolls-Royce, a company known for luxury cars, is actually a pretty big deal in the aviation market.
That’s right, Rolls-Royce makes aircraft, however, efforts as of late have gone into manufacturing — energy storage systems is one of many highlights.
Rolls-Royce’s work covers electric vertical takeoff and landing vehicles (eVTOL) alongside electric cars, starting with the upcoming ‘Silent Shadow.’
So, why should you invest in an established company like Rolls-Royce?
Simple, its shares have fallen below 100p, giving you the perfect entry point.
Yes, this could be considered bad, but we’re remaining optimistic as the company is one of many hit hard by the pandemic.
We believe that continued support in its aero endeavours will make Rolls-Royce one of the best EV stocks in time.
There is some level of risk involved with investing in the company right now. We get it.
But we have a good feeling about the future of Rolls-Royce stock.
Invest Because: Home charging is set to increase as more EVs hit roads.
Last but not least we have electric charging company Wallbox.
The number of homes with EV chargers in them is set to increase as vehicle numbers increase.
And Wallbox just so happens to be a company offering cost-effective units to potential buyers, complete with additional features.
Unlike some of the other electric vehicle stocks mentioned, Wallbox hasn’t gone public just yet, but it will very soon through a merger with the Kensington Capital Acquisition Corp. II (KCAC).
The $1.5 billion deal is expected to close in the third quarter of 2021, which will give Wallbox around $330 million to play with to fund growth.
This is one of those scenarios where investing early could net you a handsome reward.
Just Google: “the best home EV chargers,” to see how popular Wallbox is.
Or better yet, check out our guide on the best home chargers to learn more about the company before you go investing.
It’s not one of those typical electric vehicle stocks you were expecting, but you can’t deny the appeal of a Wallbox once it goes live on the exchange.
The app tied to Wallbox is pretty unique too, probably one of the better ones we’ve come across.
Why Invest In The Best EV Stocks To Begin With?
Investing has proven itself a fun and formidable pastime for as long as we can remember. It’s one of those ever-changing hobbies that yield actual value over time.
Investing isn’t as difficult as it once was either. Sure, you need to have a basics understanding of the fundamentals, but apps like Trading 212 and eToro have made it all the more accessible for new investors.
Moreover, the EV industry is easily one of the best markets to follow if you’re an avid investor.
Why? Because there are dozens of companies, old and new, trading on the exchange.
In the beginning, investors had Tesla, Inc., General Motors Company and Fisker Inc. to look at. These days you have a lot more to pick and choose from in terms of electric vehicle stocks as new companies appear.
Try not to doubt the power of electric vehicles either. In 2019, sales of EVs hit that 2.1 million mark worldwide; they aren’t some fancy tech/investment trend.
Sales are rising, traditional car companies are all taking the electric pledge, and the tech is constantly moving forwards.
Also, governments, like in the UK, are announcing greener rules/regulations that will see standard combustion engines replaced sooner than you think.
The popularity of EVs cannot go understated. Plus, you’d be investing in companies with greener changes in mind. If you consider yourself an environmentally conscious person, then surely you’d want to jump on electric car stocks now over later.
Are Some Electric Car Stocks Risky to Invest In?
Sure they are.
Like with any stock, you are taking somewhat of a risk. However, some EV companies out there, like Canoo (GOEV) and Fisker (FSR), are considered riskier than, say, NIO (NIO) or Li Auto (LI) as they have yet to be tested fully in a commercial setting.
In other words, some of these EV companies have yet to release their projects to the world, thus making them somewhat difficult to read from an electric vehicle stocks point of view.
To invest in these companies is a leap of faith, perhaps fuelled by a gut feeling or a run of promising news.
E4TP TIP: Create a social media account just to follow the companies you’re interested in. Understanding these companies will give you a deeper understanding of where they’re at and where they’re heading.
Electric car stocks appear to be a lot easier to read than other vehicle types as they’re talked about a lot more, and you can follow these companies easier. Electric aviation is getting there, what with the number of eVTOL aircraft making an appearance as of late. Still, they aren’t the same as cars.
Give it time; they’ll get there.
That’s not to say you should avoid electric aircraft companies either.
Eviation (EVTNF), for example, the company behind “the world’s first all-electric commuter aircraft” in Alice, should be considered one of the best EV stocks to watch alongside those we’ve mentioned above.
At the end of the day, only you can decide which electric vehicle stocks you invest in. `Just remember to research as much as possible in each company beforehand.
A company known for money issues, or are prone to delays, might be worth avoiding for the time being.
Tips in Finding the Best EV Stocks
High valuations, although helpful, aren’t always so cut and dry.
A highly valued company should find itself in the ‘best EV stocks’ pile, right?
Not exactly, as it depends on when you invest. Every company is prone to have the occasional sour period — just look at Tesla.
Vehicle delays due to part shortages, coupled with a crashed autonomous vehicle in Texas, has affected the companies stock.
Last year, Teslas shares jumped by 743%; in 2021, that price is down 12% as of this month.
That being said, the potential release of the Tesla Semi and more news on the upcoming Cybertruck (due for 2022) will undoubtedly have a positive effect on the stock.
Basically, some of the best electric vehicle stocks are those tied to startups. Where do you find these companies?
Try looking at grassroots companies that have recently gone public and work your way up from there.
Electric vehicle expos/launch events tend to cause stock prices to increase. These events are also a fantastic opportunity to discover new electric vehicle stocks tied to companies that could be big in the next few years.
When we say the best EV stocks, you should always keep an open mind. Remember, the EV industry is like the Wild West in terms of companies who operate in the space.
People automatically jump to vehicles, but what about companies dealing in EV charging?
To recap, when looking at the best EV stocks, employ the following tips:
- Bigger/established companies with high valuations aren’t always the best bet.
- Expos/launch events tend to have a positive affect on stocks and are a great way to identify emerging companies.
- Look at EV charging companies as share prices could rise in the future as more EVs hit roads.
In Short: Electric Investing: The Best EV Stocks To Keep An Eye On
EVs are already the zeitgeist of the 21st century in certain parts of the world — looking at you Norway — and will catch up in other areas as time goes on.
Investing in the best EV stocks now is your ticket to netting quite the profit down the line — depending on who you invest in, that is.
Electric car stocks tend to be easier to follow if you’re looking for a good entry point as a novice investor. However, as we’ve proven, electric aviation is catching up via electric takeoff and vertical landing (eVTOL) craft.
And don’t forget to look out for electric boat companies; companies like X Shore could go public in the coming years.
Remember, you don’t need to buy in straight away. Like with any other trading company, shares will fluctuate. A company on a downward turn could be profitable in the future.
So pick your spots, invest wisely, and enjoy the fruits of your labour.
That’s the entire point, right?
Electric Vehicle Stocks FAQS
What is the best electric vehicle stock to invest in?
In our opinion, investing in companies like NIO for all-electric vehicles, but then there are standard car companies like Ford and General Motors that are worth looking at too. Remember, you don’t need to invest immediately. It’s better to bide your time in some cases.
Should I invest in Tesla stock right now?
This year (2021) has not been too kind to EV juggernaut Tesla; the company is currently down 12% for the year as stated above. We expect the company to bounce back at some point this year — as do many experts. Investing in Tesla can be risky at this current moment in time, so invest wisely.
What are EV companies?
EV stands for electric vehicle, which ties to companies operating in the market. Some companies are known for making only electric vehicles (like Tesla), but the term can refer to traditional automakers who dabble in hybrids.
Why should I invest in electric vehicle stocks?
Simple: the market will grow as and when the technology gets better, aided by government support. Countries across the globe have planted the seeds of EVs with plans in place to ban combustion engines by set dates.