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Best Growth Stocks To Buy Now? 5 Electric Vehicle Stocks To Watch

EV stocks are on fire, fueled by optimism from strong delivery numbers.

best growth stocks to buy now (electric vehicle stocks)

Electric Vehicle Stocks Are Heating Up Again, Do You Have Them In Your Portfolio?

Electric vehicles are racing to capitalize on the shift towards battery-powered cars, and electric vehicle (EV) stocks have been keeping pace. No doubt, it has been one of the best sectors to find growth in the stock market over the past year. The momentum we saw among top electric vehicle stocks has certainly been epic, to say the least. But with many growth stocks peaking in early February, a general tech stock selloff and concerns about chip shortages have put some pressure on the space.

While Tesla (NASDAQ: TSLA) has long been considered the undisputed leader when it comes to investing in EV stocks, investors might want to look elsewhere for better growth amid the sky-high valuation of TSLA stock. Admittedly, there has been some pullback in the space amid frothy valuations. But Chinese electric vehicle stocks appear to be making a comeback after strong delivery numbers. Traditional automakers late to the EV game are also recording strong gains in their share price recently. And if you truly believe in the space, you would most likely believe that the growth runway is far from over. With all that in mind, do you have a list of top EV stocks to watch in the stock market today?

Electric Vehicle Stocks To Watch Right Now

Nio Inc. 

Chinese EV specialist Nio started the week on a strong note after the monthly delivery update. While a sequential dip might not be what inventors are looking for, delivering over 6,700 vehicles is still a 95% increase year-over-year. The growing demand in China is what prompted Citigroup analyst Jeff Chung to upgrade NIO stock to a “Buy” rating as we start the month of June. With the expected accelerating demand in the world’s largest EV market, the analyst sees a potential upside of over 37% for NIO stock. 

Source: TD Ameritrade TOS

Despite the global chip shortages, the management’s confidence in its upbeat second-quarter guidance helps in reassuring some investors. Nio believes it will be able to make up the lost production in June, and that it’s still on track to deliver between 21,000 and 22,000 vehicles in the second quarter. For those unfamiliar, the company also recently signed a major production agreement with Jianghuai Automobile Group and Jianglai Advanced Manufacturing Technology for the joint manufacturing of NIO vehicles for another three years. Considering China’s intense push for green energy, would you load up on NIO stock right now?

[Read More] Hot Stocks To Buy Now? 5 Cyclical Stocks To Watch

Xpeng

Coming up next, we have another China-based EV company, Xpeng. If we were to compare, the company actually reported a stronger delivery compared to Nio. From its monthly delivery report, the company delivered 5,686 smart EVs in May. This represents a 483% increase year-over-year and a 10% increase from its previous month. Part of Xpeng’s sales growth is being driven by strong demand for its P7, a sleek electric sedan launched last spring.

Source: TD Ameritrade TOS

From its first-quarter results, total vehicles delivered by the company jumped by 487% to 13,340 from 2,271 in the corresponding period of the prior year. Also, total revenue increased 616.1% year-on-year to $450.4 million. This can largely be attributed to its deliveries of the P7 model. What’s more impressive is that the company is predicting another fruitful second quarter. Given the strong financial results of the company, would you say that XPEV stock is trading at a discount now? 

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Li Auto

Li Auto is another Chinese EV that marked its presence in the industry and has a massive market to cater to. Today, the company announced that it has delivered 4,323 Li ONEs in May 2021, representing a 101.3% year-over-year increase. From its most recent quarterly earnings, revenue came in at $545.7 million, beating consensus estimates of $522.5 million. Similar to other Chinese EVs on this list, Li Auto is highly optimistic that its deliveries in the second quarter will likely exceed the top end of their guidance range. The company’s stock price also appears to be staging a comeback, with LI stock seeing gains of more than 20% in the past month.

Source: TD Ameritrade TOS

If I were to guess, its recent rally may have to do with the company’s outlook. Firstly, the company will commence deliveries of an updated version of the Li ONE SUV this month. In addition, the company is also looking to at least double its sales network by the end of the year. Considering the upbeat momentum with the company’s performance, do you think LI stock has more room to run?

Ford Motors

Next on the list is Wall Street’s favorite electric vehicle stock, Ford. The company’s recent effort to increase its EV investments to $30 billion by 2025 is huge news for the company and the industry as a whole. More importantly, the automaker’s Mustang Mach-E tops Norway car sales in May, putting it ahead of any Tesla model. F stock has been on an upward trend since the start of the year, showing gains of over 70%. In fact, it has risen more than 150% over the past year. 

Source: TD Ameritrade TOS

Recently, the company officially debuted its latest electric pickup truck, the F-150 Lightning. This is the second mass-market EV from Ford, following the Mustang Mach-E. The company received more than 44,500 reservations in under 48 hours, according to a tweet by CEO Jim Farley. This could be a sign of greater things ahead. After all, the model is one of the most powerful F-150s ever made. The company also recently joined forces with BMW to invest in solid-state battery startup Solid Power. Considering all these developments, is F stock an EV stock to buy and hold for the long run?

[Read More] 3 Value Stocks To Watch Right Now

General Motors

Like Ford, General Motors is another traditional automaker transitioning to EV. For the uninitiated, General Motors has an impressive lineup of EVs. The company’s Chevrolet Bolt and Chevrolet Volt are among the best-selling EVs in the US. Both of the models are much more affordable compared to Tesla’s models. At the heart of the company’s business strategy is its Ultium battery platform. Ultium powers everything from its mass market to high-performance vehicles. 

Source: TD Ameritrade TOS

As you may have heard, the company recently announced that it has teamed up with Lockheed Martin (NYSE: LMT) to develop a next-generation lunar rover for NASA’s Artemis astronauts to explore the moon. If anything, this would be a testament to General Motors’ technological prowess and innovation by participating in this partnership. Given the excitement surrounding the company, is GM stock the best EV stock to buy on this list?

By Jonathan Phillip

Jonathan Phillip is an up and coming financial contributor in the stock market today. He's found a strong niche in writing about true growth industries. His main focus for the last 5 years has been on the cannabis industry and marijuana stocks. He is one of the top contributors to cannabis media outlets like MarijuanaStocks.com. He also is head of social media management for StockMarket.com.

Since an early age, Jonathan has been an active member of the cannabis culture. Coming from Miami, Florida, he's been able to identify emerging trends in the space including the emergence of cannabis derivatives, vapes, e-liquids, wax, and more. His ability to identify emerging niches has afforded him the ability to source valuable information from top industry names.

Jonathan has also managed to build a strong social media presence for companies. He has worked with hundreds of public companies to develop a digital presence. As an active blogger and social media influencer, his focus is on lifestyle segments of the market. You can find Jonathan reporting on anything from industry conferences and investor events to corporate disclosures and cannabis market movers.

Since the early days of marijuana companies going public, Jonathan has made it a point to find information before the crowd. The main target of his writing is on undiscovered or under-researched companies that could hold true, lasting market potential. Through his research, Jonathan has managed to be one of the early writers to identify the opportunity of cannabis over other things like alcohol and he was one of the first reporters to cover the multi-billion dollar deals that materialized in 2017 and 2018. He has also covered the emergence of multi-state operators in the U.S. after Canada paved the way in late 2018 and 2019 for legalization in North America.

Jonathan is also an active member of the underground hip-hop scene. He has worked with some of the biggest names in the rap community while also gaining valuable insight from top producers and business moguls focused on moving brands forward. In his free time, Jonathan builds social communities and continues to hone his skills as a leading financial writer.

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